Business Intelligence Capabilities and Effectiveness: An Integrative Model

Organizations may not be equally predisposed towards successful adoption and implementation of business intelligence (BI) initiatives and applications. A key to understanding the success or failure of BI within an organization, termed as BI Effectiveness, is the identification and assessment of BI Capabilities and their constituent dimensions. Using this theoretical foundation, we develop a conceptual framework that identifies four BI Capabilities, comprising of eleven dimensions, and offer three propositions that illustrate their effect on BI Effectiveness. To facilitate empirical research, we develop and cross-validate a questionnaire instrument to measure these new constructs, which can serve as a diagnostic tool through which organizations can assess the effectiveness of their BI initiatives. We thus provide a definitional and empirical context for assessing key BI Capabilities that directly impact an organization's effectiveness at BI implementation and use.