Organisational absorptive capacity and its potential role in achieving business intelligence systems efficiency in strategic managerial levels

Abstract

The available organisational capabilities engaged in the process of creating data processing intelligence inside organisations are still required to be limited, given the current outstanding competitive environments that deal with the global increase of available data and information production required to be transformed consistently into knowledge. This study investigates the relationship between Absorptive Capacity (ACAP) (i.e., the ability of organisations to gather, absorb, and strategically influence new external information), and Business Intelligence (BI), which are systems that convert data into valuable information, and then into knowledge throughout strong human consideration. The insight of the current study is to offer a detailed exploration from the standpoint of the two perceptions. ACAP is required to be a dynamic capability for generating strategic data transformation setting in an organisation. Similarly, ACAP is proposed to play a significant role in enriching the process of knowledge creation embraced inside contemporary organisational Information Systems (IS) environments. The research uses a combination of quantitative and qualitative research methods. By offering a rich indication in presenting a rigours approach of systematic qualitative methods, Grounded Theory Methodology (GTM) coding techniques were used to analyse data collected using semistructured interviews form (22) senior managers. The extracted grounded measures assisted in considering ACAP main dimensions treated as potential organisational dynamic capabilities and shaped as a grounded relational model. Drawing on the qualitative analysis results, the ACAP extracted measures were quantitatively validated for their possible effects on BI System efficiency. The quantitative methods used surveys conducted on a sample of (150) participants and analysed using Partial Least Squares - Structural Equation Modelling (PLS-SEM). The study targeted the telecommunication industry taking the country Jordan as a case example. The findings indicate that ACAP dimensions are anticipated to influence the efficiency of BI systems inside organisations. The contribution of this study adds significantly to the existing body of literature by primarily providing a novel integration of the concept of ACAP, offering a relational model through which researchers can more fully leverage the measures of ACAP within organisations. Accordingly, the core contribution of the research provided a more comprehensive framework that serves managers and strategic professionals to assist them in classifying their ACAP measures before attempting to purchase state of the art BI systems with a high amount of expenditures. The extracted categories can be treated as guides to IS researchers, and senior managers in exploring the rich facets of ACAP proposed to offer foundations for shaping where and how to further potential organisational assets can be leveraged.