Application of Business Intelligence in Kenyan SMEs
DOI:
https://doi.org/10.12700/jceeas.2024.4.3-4.299Keywords:
Business Intelligence, digitalization, Kenya, SME, TOE frameworkAbstract
Business Intelligence is still in its infancy stages in developing countries, particularly Kenya. Research has shown that different models are available to assess the usage and adoption of Business Intelligence (BI). In this case, the technological, organizational, and environmental (TOE) model was proposed as a suitable model for developing economies like Kenya. The study investigates how the TOE constructs affect BI adoption, the BI systems in Kenya, and whether managers influence BI adoption. The equivocal nature of the TOE framework allowed the creation of a structured interview questionnaire that was divided into two parts; the demographic profile and questions based on the TOE framework. The results demonstrated that the TOE factors led to more intensive BI adoption, but there might be a lack of awareness or technical skills to adopt advanced BI technologies. On this basis, it is recommended that managers within small- and medium-sized enterprises (SME) learn about better BI solutions and how they can leverage the advantage to enable them to stay profitable, competitive, and data driven. Further research is needed to better understand BI usage within SMEs preferably with larger and representative sample sizes and across different counties within Kenya.
References
Acs, Z. J., & Audretsch, D. B. (1987). Innovation, Market Structure, and Firm Size. The Review of Economics and Statistic, 69(4), 567. DOI: https://doi.org/10.2307/1935950
Adeyelure, T. S., Kalema, B. M., & Bwalya, K. J. (2018). Deployment factors for mobile business intelligence in developing countries small and medium enterprises. African Journal of Science, Technology, Innovation and Development, 10(6), 715-723. DOI: https://doi.org/10.1080/20421338.2018.1491137
African Union. (2016). The African Union Commission begins the process of validating SME Strategy and Master Plan 2017-2021. Retrieved September 15, 2024 from https://au.int/en/pressreleases/20161013-5
Ain, N., Vaia, G., DeLone, W. H., & Waheed, M. (2019). Two decades of research on business intelligence system adoption, utilization and success – A systematic literature review. Decision Support Systems, 125, 113113. DOI: https://doi.org/10.1016/j.dss.2019.113113
Audretsch, D. B. (2002). The Dynamic Role of Small Firms: Evidence from the U.S. Small Business Economics, 18(1), 13-40. DOI: https://doi.org/10.1023/A:1015105222884
Awa, H. O., Ukoha, O., & Emecheta, B. C. (2016). Using T-O-E theoretical framework to study the adoption of ERP solution. Cogent Business & Management, 3(1), 1196571. DOI: https://doi.org/10.1080/23311975.2016.1196571
Beal, V. (2021). Business Intelligence (BI). Webopedia. Retrieved September 15, 2024 from https://www.webopedia.com/definitions/bi/
Beheshti, H. M., Hultman, M., Jung, M. L., Opoku, R. A., & Salehi-Sangari, E. (2007). Electronic supply chain management applications by Swedish SMEs. Enterprise Information Systems, 1(2), 255-268. DOI: https://doi.org/10.1080/17517570701273221
Berbel, T. d. R. L., & Gonzàlez, S. M. (2015). How to help end users to get better decisions? Personalising OLAP aggregation queries through semantic recommendation of text documents. International Journal of Business Intelligence and Data Mining, 10(1), 1-18. DOI: https://doi.org/10.1504/IJBIDM.2015.069022
Best Practices Team Pentaho. (2024). Logging, Monitoring, and Performance Tuning for Pentaho, Pentaho Customer Portal. Retrieved September 15, 2024 from https://support.pentaho.com/hc/en-us/articles/360001742172-Logging-Monitoring-and-Performance-Tuning-for-Pentaho
Boonsiritomachai, W., McGrath, G. M., & Burgess, S. (2016). Exploring business intelligence and its depth of maturity in Thai SMEs. Cogent Business & Management, 3(1), 1220663. DOI: https://doi.org/10.1080/23311975.2016.1220663
Boyd, B. K., & Fulk, J. (1996). Executive Scanning and Perceived Uncertainty: A Multidimensional Model. Journal of Management, 22(1), 1-21. DOI: https://doi.org/10.1177/014920639602200101
Cataldo, A., Pino, G., & McQueen, R. J. (2020). Size matters: the impact of combinations of ICT assets on the performance of Chilean micro, small and medium enterprises. Information Technology for Development, 26(2), 292-315. DOI: https://doi.org/10.1080/02681102.2019.1684870
Chaudhuri, S., Dayal, U., & Narasayya, V. (2011). An overview of business intelligence technology. Commun. ACM, 54(8), 88–98. DOI: https://doi.org/10.1145/1978542.1978562
Chen, H., Chiang, R. H. L., & Storey, V. C. (2012). Business Intelligence and Analytics: From Big Data to Big Impact. MIS Quarterly, 36(4), 1165-1188. DOI: https://doi.org/10.2307/41703503
Daft, R. L., Sormunen, J., & Parks, D. (1988). Chief executive scanning, environmental characteristics, and company performance: An empirical study. Strategic Management Journal, 9(2), 123-139. DOI: https://doi.org/10.1002/smj.4250090204
Dhingra, S., & Chaudhry, K. (2018). A Study of the Impact of Data Warehousing and - ProQuest. International Journal of Advanced Studies in Computers, Science and Engineering, 7(1), 13-20.
Dobrev, K. V., & Hart, M. (2015). Benefits, Justification and Implementation Planning of Real‑Time Business Intelligence Systems. 18(2). https://typeset.io/papers/benefits-justification-and-implementation-planning-of-real-2zo46y0a0l
Drake, B. M., & Walz, A. (2018). Evolving Business Intelligence and Data Analytics in Higher Education. New Directions for Institutional Research, 2018(178), 39-52. DOI: https://doi.org/10.1002/ir.20266
Drushku, K., Aligon, J., Labroche, N., Marcel, P., & Peralta, V. (2019). Interest-based recommendations for business intelligence users. Information Systems, 86, 79-93. DOI: https://doi.org/10.1016/j.is.2018.08.004
Enterprise Ireland. (2007). SME Definition. Retrieved March 20, 2024 from https://ec.europa.eu/growth/smes/sme-definition_en
Executive Agency for Small and Medium sized Enterprises. (2021). Annual report on European SMEs 2020/2021: digitalisation of SMEs : background document. LU: Publications Office. Retrieved September 15, 2024 from DOI: https://data.europa.eu/doi/10.2826/120209
Fiegenbaum, A., & Karnani, A. (1991). Output flexibility—A competitive advantage for small firms. Strategic Management Journal, 12(2), 101-114. DOI: https://doi.org/10.1002/smj.4250120203
Friedman, T. (2011). Measuring the Business Value of Data Quality. Gartner. Retrieved September 15, 2024 from https://www.gartner.com/en/documents/1819214
Gangadharan, G. R., & Swami, S. N. (2004). Business intelligence systems: design and implementation strategies. Proceedings of the 26th International Conference on Information Technology Interfaces (ITI). Retrieved September 15, 2024 from https://ieeexplore.ieee.org/document/1372391
Gauzelin, S., & Bentz, H. (2017). An examination of the impact of business intelligence systems on organizational decision making and performance: The case of France. Journal of Intelligence Studies in Business, 7(2), 40-50. DOI: https://doi.org/10.37380/jisib.v7i2.238
Geetha, S., Dhanani, K. R., & Doshi, P. P. (2020). Data Analysis and ETL Tools in Business Intelligence. International Research Journal of Computer Science, 7(5), 127–132. DOI: https://doi.org/10.26562/irjcs.2020.v0705.007
Golafshani, N. (2015). Understanding Reliability and Validity in Qualitative Research. 8(4), 597-606. https://doi.org/https://doi.org/10.46743/2160-3715/2003.1870
Gupta, M., & Cawthon, G. (1996). Managerial implications of flexible manufacturing for small/mediumm-sized enterprises. Technovation, 16(2), 77-94. DOI: https://doi.org/10.1016/0166-4972(95)00023-2
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2013). Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance. Long Range Planning, 46(1), 1-12. DOI: https://doi.org/10.1016/j.lrp.2013.01.001
Hidayanto, A., Kristianto, R., & Shihab, M. (2012). Business Intelligence Implementation Readiness: A Framework Development and Its Application to Small Medium Enterprises (SMEs) pp. 1-10. International Research Symposium in Service Management (IRSSM),
IBM. (2011). IBMTech Trends Report - The 2011 IBM Tech Trends Report Tech Trends of today. Skills for - Studocu. IBM. Retrieved September 15, 2024 from https://www.studocu.com/row/document/national-university-of-sciences-and-technology/digital-communications-fundamentals-and-applications-second-edition-by-bernard-sklar/2011-ibmtech-trends-report/42752606
Jonker, R., Tegelaar, J., & Geurtsen, J. (2013). Enterprise Data Management: value and necessity’. Compact, 24-30.
Kenya National Bureau of Statistics (KNBS). (2020). Economic survey 2020. Kenya National Bureau of Statistics. Africa Research Bulletin: Economic, Financial and Technical Series, 58(8), 391.
Kenya National Bureau of Statistics (KNBS). (2024). 2024 Economic Survey - Kenya National Bureau of Statistics. Nairobi, Kenya, p.28. Kenya National Bureau of Statistics. Retrieved September 15, 2024 from https://www.knbs.or.ke/reports/2024-economic-survey/
Kern, T., & Willcocks, L. (2002). Exploring relationships in information technology outsourcing: the interaction approach. European Journal of Information Systems, 11(1), 3-19. DOI: https://doi.org/10.1057/palgrave.ejis.3000415
Kinuthia, K. (December 3, 2018). List: Firms that have issued profit warning this year. Business Daily. https://www.businessdailyafrica.com/bd/corporate/companies/list-firms-that-have-issued-profit-warning-this-year-2229978
Kiwia, A. (2019). Makala Ya Mtangazaji. TanTrade. Retrieved September 15, 2025 from https://www.tantrade.go.tz
Klein, D., Tran-Gia, P., & Hartmann, M. (2013). Big Data. Informatik-Spektrum, 36(3), 319-323. DOI: https://doi.org/10.1007/s00287-013-0702-3
Kowalczyk, M., & Gerlach, J. (2015). Business Intelligence & Analytics and Decision Quality - Insights on Analytics Specialization and Information Processing Modes. University of Münster. DOI: https://doi.org/10.18151/7217398
KPMG. (2022). 2022 TOP100 Kenya Survey Results. KPMG. Retrieved September 15, 2024 from https://eastafricatop100.com/wp-content/uploads/2022/12/2022-Top100-conference-presentation.pdf
KPMG. (2023). EastAfricaTop100 – Be seated among the great. Retrieved September 15, 2024 from https://eastafricatop100.com/
Lefebvre, E., & Lefebvre, L. A. (1992). Firm innovativeness and CEO characteristics in small manufacturing firms. Journal of Engineering and Technology Management, 9(3), 243-277. DOI: https://doi.org/10.1016/0923-4748(92)90018-Z
Levy, M., & Powell, P. (1998). SME Flexibility and the Role of Information Systems. Small Business Economics(11), 183-196.
Li, W., Liu, K., Belitski, M., Ghobadian, A., & O'Regan, N. (2016). E-Leadership through Strategic Alignment: An Empirical Study of Small- and Medium-sized Enterprises in the Digital Age. Journal of Information Technology, 31(2), 185-206. DOI: https://doi.org/10.1057/jit.2016.10
Llave, M. R. (2017). Business Intelligence and Analytics in Small and Medium-sized Enterprises: A Systematic Literature Review. Procedia Computer Science, 121, 194-205. DOI: https://doi.org/10.1016/j.procs.2017.11.027
Llave, M. R., Hustad, E., & Olsen, D. H. (2018). Creating Value from Business Intelligence and Analytics in SMEs. Insights from Experts.
Lueg, R., & Lu, S. (2013). How to Improve Efficiency in Budgeting; the case of Business Intelligence in SMEs. European Journal of Management, 13(2), 109-120. DOI: https://doi.org/10.18374/EJM-13-2.13
MacGregor, R. C., & Vrazalic, L. (2005). The Effects of Strategic Alliance Membership on the Disadvantages of Electronic Commerce Adoption: A Comparative Study of Swedish and Australian Regional Small Businesses. Journal of Global Information Management (JGIM), 13(3), 1-19. DOI: https://doi.org/10.4018/jgim.2005070101
Manis, K. (2022). Microsoft named a Leader in the 2022 Gartner® Magic QuadrantTM for Analytics and BI Platforms. Retrieved September 15, 2025 from https://powerbi.microsoft.com/en-us/blog/microsoft-named-a-leader-in-the-2022-gartner-magic-quadrant-for-analytics-and-bi-platforms/
Manis, K. (2024). Microsoft named a Leader in the 2024 Gartner® Magic QuadrantTM for Analytics and BI Platforms. Retrieved September 15, 2024 from https://powerbi.microsoft.com/en-us/blog/microsoft-named-a-leader-in-the-2024-gartner-magic-quadrant-for-analytics-and-bi-platforms/
Mariani, M., & Baggio, R. (2022). Big data and analytics in hospitality and tourism: a systematic literature review. International Journal of Contemporary Hospitality Management, 34(1), 231-278. DOI: https://doi.org/10.1108/IJCHM-03-2021-0301
Marjamäki, P. (2017). Evolution and trends of business intelligence systems : a systematic mapping study University of Oulu. https://www.semanticscholar.org/paper/Evolution-and-trends-of-business-intelligence-%3A-a-Marjam%C3%A4ki/cbe86d72795cd546aadd319620419471b080c7f8
Mesaros, P. (2016). Model of key success factors for Business Intelligence implementation. Journal of Systems Integration, 3-15. DOI: https://doi.org/10.20470/jsi.v7i3.264
Moore, S. (2017). Gartner Says Worldwide Business Intelligence and Analytics Market to Reach $18.3 Billion in 2017. Gartner. Retrieved September 15, 2024 from https://www.gartner.com/en/newsroom/press-releases/2017-02-17-gartner-says-worldwide-business-intelligence-and-analytics-market-to-reach-18-billion-in-2017
Mullan, M. (2019). The data-driven airport: How daa created data and analytics capabilities to drive business growth, improve the passenger experience and deliver operational efficiency. Journal of Airport Management, 13(4), 361-379. DOI: https://doi.org/10.69554/NVJX2492
Nagy, J., Oláh, J., Erdei, E., Máté, D., & Popp, J. (2018). The Role and Impact of Industry 4.0 and the Internet of Things on the Business Strategy of the Value Chain—The Case of Hungary. Sustainability, 10(10).
Ntwoku, H., Negash, S., & Meso, P. (2017). ICT adoption in Cameroon SME: application of Bass diffusion model*. Information Technology for Development, 23(2), 296-317. DOI: https://doi.org/10.1080/02681102.2017.1289884
OECD. (2008). OECD Glossary of Statistical Terms —Small and medium-sized enterprises (SMEs) Definition. Retrieved September 15, 2024 from DOI: https://doi.org/10.1787/9789264055087-en
OECD. (2023). OECD SME and Entrepreneurship Outlook 2023. OECD (OECD SME and Entrepreneurship Outlook). Retrieved September 15, 2024 from DOI: https://doi.org/10.1787/342b8564-en
Ouedraogo, H., Compaoré, I., & Nassè, T. B. (2022). Practice of Business Intelligence by SMEs in Burkano Faso. International Journal of Management & Entrepreneurship Research, 4(1), 48–58. DOI: https://doi.org/10.51594/ijmer.v4i1.262
Owusu, A. (2017). Business intelligence systems and bank performance in Ghana: The balanced scorecard approach. Cogent Business & Management, 4(1), 1364056. DOI: https://doi.org/10.1080/23311975.2017.1364056
Owusu, A., Ghanbari-Baghestan, A., & Kalantari, A. (2017). Investigating the Factors Affecting Business Intelligence Systems Adoption: A Case Study of Private Universities in Malaysia. International Journal of Technology Diffusion, 8(2), 1-25. DOI: https://doi.org/10.4018/IJTD.2017040101
Papachristodoulou, E., Koutsaki, M., & Kirkos, E. (2017). Business intelligence and SMEs: Bridging the gap. Journal of Intelligence Studies in Business, 7(1).
DOI: https://doi.org/10.37380/jisib.v7i1.216
Popovič, A., Puklavec, B., & Oliveira, T. (2019). Justifying business intelligence systems adoption in SMEs. Industrial Management & Data Systems, 119(1), 210-228. DOI: https://doi.org/10.1108/IMDS-02-2018-0085
Puklavec, B., Oliveira, T., & Popovič, A. (2014). Unpacking Business Intelligence Systems Adoption Determinants: An Exploratory Study of Small and Medium Enterprises. Economic and Business Review, 16(2). DOI: https://doi.org/10.15458/2335-4216.1278
Raj, R., Wong, S. H. S., & Beaumont, A. J. Business Intelligence Solution for an SME: A Case Study. SCITEPRESS - Science and Technology Publications, Proceedings of the 8th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management, 41-50. DOI: https://doi.org/10.5220/0006049500410050
Raj, R., Wong, S. H. S., & Beaumont, A. J. (2019, 2019//). Empowering SMEs to Make Better Decisions with Business Intelligence: A Case Study. Knowledge Discovery, Knowledge Engineering and Knowledge Management, Cham.
Ramdani, B., Raja, S., & Kayumova, M. (2022). Digital innovation in SMEs: a systematic review, synthesis and research agenda. Information Technology for Development, 28(1), 56-80. DOI: https://doi.org/10.1080/02681102.2021.1893148
Rogers, E. M., Singhal, A., & Quinlan, M. M. (2019). Diffusion of Innovations 1. In D. W. Stacks, M. B. Salwen, & K. C. Eichhorn (Eds.), An Integrated Approach to Communication Theory and Research. 3rd ed. (pp. 415–434). Routledge. DOI: https://doi.org/10.4324/9780203710753-35
Saáry, R., Kárpáti-Daróczi, J., & Tick, A. (2022). Profit or less waste?: Digitainability in SMEs: A comparison of Hungarian and Slovakian SMEs. Serbian Journal of Management, 17(1), 33-49. DOI: https://doi.org/10.5937/sjm17-36437
Sasvari, P. (2015). The Examination of Using Business Intelligence Systems by Enterprises in Hungary. International Journal of Advanced Computer Science and Applications, 6(2). DOI: https://doi.org/10.14569/IJACSA.2015.060214
Schegel, K. (2024). Magic Quadrant for Analytics and Business Intelligence Platforms. Garzner. Retrieved September 15, 2024 from https://www.gartner.com/doc/reprints?id=1-2HVUGEM6&ct=240620&st=sb
Scholz, P. (2010). Benefits and Challenges of Business Intelligence Adoption in Small and Medium-Sized Enterprises ECIS 2010 Proceedings, pp. 1-12,
Séllei, B. (2024). Gaps and Bridges between Future Managers and IT People. Acta Polytechnica Hungarica, 21(3), 53–72. DOI: https://doi.org/10.12700/APH.21.3.2024.3.5
Storey, D. J. (1994). Understanding The Small Business Sector (1st ed.). Routledge. DOI: https://doi.org/10.4324/9781315544335
Talaoui, Y., & Kohtamäki, M. (2021). 35 years of research on business intelligence process: a synthesis of a fragmented literature. Management Research Review, 44(5), 677-717. DOI: https://doi.org/10.1108/MRR-07-2020-0386
Tick, A. (2023, 23-26 May 2023). Evaluation of Industry 4.0 familiarity at SMEs in Central-Eastern Europe using Machine Learning Algorithms. 2023 IEEE 17th International Symposium on Applied Computational Intelligence and Informatics (SACI),
Tick, A. (2023). Industry 4.0 Narratives through the Eyes of SMEs in V4 Countries, Serbia and Bulgaria. Acta Polytechnica Hungarica, 20(2), 83-104. DOI: https://doi.org/10.12700/APH.20.2.2023.2.5
Tick, A., Saáry, R., & Kárpáti-Daróczi, J. (2022). Conscious or Indifferent: Concerns on digitalisation and sustainability among SMEs in Industry 4.0. Serbian Journal of Management, 17(1), 145-160. DOI: https://doi.org/10.5937/sjm17-36412
Tiernan, C., & Peppard, J. (2004). Information Technology:: Of Value or a Vulture? European Management Journal, 22(6), 609-623. DOI: https://doi.org/10.1016/j.emj.2004.09.025
Tornatzky, L. G., & Fleischer, M. (1990). The processes of technological innovation. 4. print. Lexington, Mass. Lexington Books.
van der Krogt, A., Coronel, R. a., & Núñez-Castillo, C. (2020). Adoption of business intelligence for SMEs’, in O. Dvouletý, M. Lukeš, and J. Mísař (eds) 8th International Conference Innovation Management, Entrepreneurship and Sustainability 8th International Conference Innovation Management, Entrepreneurship and Sustainability, Praga.
Venczel, T. B., Berényi, L., & Hriczó, K. (2024). The Project and Risk Management Challenges of Start-ups. Acta Polytechnica Hungarica, 21(2), 151-166. DOI: https://doi.org/10.12700/APH.21.2.2024.2.8
Voicu, V., Zirra, D., & Ciocirlan, D. (2009). Business intelligence effective sollutions of management. In Proceedings of the 10th WSEAS international conference on Mathematics and computers in business and economics (pp. 181-185). World Scientific and Engineering Academy and Society (WSEAS).
Wade, C. (March 15, 2010). Power BI as a superset of Azure Analysis Services. Microsoft Power BI Blog. https://powerbi.microsoft.com/en-sg/blog/power-bi-as-a-superset-of-azure-analysis-services/
Wakiaga, P. (2019). SMEs critical in attaining manufacturing dream. Kenya Association of Manufacturers. Retrieved September 15, 2024 from https://kam.co.ke/smes-critical-in-attaining-manufacturing-dream/
Downloads
Published
Versions
- 2025-02-05 (2)
- 2025-02-03 (1)
