A business intelligence systems adoption framework for the small, medium, and micro-enterprises grocery retail sector : A case of Tshwane Metropolitan Municipality

Abstract

Business Intelligence Systems (BIS) is regarded as a leveraging suite of tools and technologies to enhance the decision-making process of an organization by transforming data into valuable and actionable knowledge to gain a competitive advantage. While some small to medium enterprises (SMMEs) have adopted BIS technologies and are deriving benefits from them, others are confronted with a host of challenges when trying to adopt BIS. This study examined factors that are hampering the smooth adoption of BIS by SMMEs in the grocery retail sector in South Africa, focusing on the Tshwane Metropolitan Municipality, and proposed a suitable framework to guide such adoption. Three technology adoption models which underpinned this study are the technology acceptance model, task-technology fit model, and diffusion on innovation model. These models were integrated to develop a conceptual framework for the study. A survey research design was considered suitable for this study because it is the best method for generalizing the findings to the entire population. The study adopted a quantitative research approach, which is an approach for testing objective theories by examining the relationship among variables. In total, 300 close-ended questionnaires were distributed to SMMEs owners/managers around Pretoria. The data collected were analysed using the IBM SPSS version 27 software package. Multiple regression analysis was used to test the seven proposed hypotheses and to determine the statistical significance of each hypothesis. The final tested framework demonstrated that observability, trialability, perceived BIS ease of use, and perceived BIS usefulness were all positively correlated to BIS adoption. Furthermore, the framework also showed that BIS characteristics and task characteristics positively influence task technology fit. Recommendations are made for SMMEs to overcome barriers in adopting BIS, these are: there is a need for SMMEs management to invest in IT projects by allocating enough budget for technology purchase and implementation, sponsored IT support programs could enable SMMEs to increase their knowledge regarding the latest technologies they could adopt for their business, SME managers should be able to build a culture that is complimentary with technology and innovation and SMME managers should engage in strategic collaboration with other major business players to enhance learning experiences about BIS technologies.