The impact of business intelligence on promoting decision-making in Jordanian business companies

Abstract

This research aims to investigate the impact of business intelligence on promoting decision-making in Jordanian business companies. The research Methodology is quantitative. It adopts an analytical case study approach, employing the analytical descriptive method, which is deemed appropriate for investigating social phenomena. The construction of the scale for this study relies on two variables that align with its objectives. This scale includes ten items that cover the main research question. The study’s target population includes all Jordanian business companies, with a sample size of 30 managers randomly selected from these companies. Several guidelines are adhered to when selecting a research instrument. The findings show that there is a positive impact of using business intelligence on promoting decision-making in Jordanian business companies. The employees of the companies have sufficient skills in the field of enhancing business intelligence since they actually use it in their workplace.

Keywords

Business intelligence decision-making product quality

Introduction

Recently, the landscape of decision-making in Jordanian business companies has undergone a transformative shift with the pervasive integration of business intelligence (BI) tools. In the contemporary landscape of smart manufacturing, numerous industries encounter hurdles related to efficiency, sustainability, prompt adaptation to dynamic client demands, product quality, and compliance with regulations. These factors collectively determine the survival of these industries. As elucidated by Hmoud and his colleagues (2023), “Business Intelligence (BI) refers to a set of software capabilities that allow companies to access, analyze, and develop actionable insights based on data to make business decisions. The implementation of advanced BI systems has empowered Jordanian enterprises to collect, analyze, and interpret vast datasets, providing executives with invaluable insights into market trends, consumer behavior, and operational efficiency.” This enhanced information flow has proven instrumental in promoting more informed and strategic decision-making processes. Majali and his colleagues (2022) emphasize that “the utilization of BI technologies has not only optimized internal operations but has also facilitated a more proactive approach among Jordanian business leaders.” By leveraging real-time analytics, executives can promptly respond to market fluctuations, adapt to emerging challenges, and capitalize on new opportunities, thereby fostering a climate of adaptability and resilience in decision-making within Jordanian business circles.

The impact of business intelligence on decision-making extends beyond operational efficiencies to encompass a broader spectrum of organizational success indicators. Jaradat and his colleagues (2024) underscore the positive correlation between BI adoption and financial performance in Jordanian business companies. Their study found that “companies leveraging BI tools exhibited superior financial outcomes, attributing this to their ability to make data-driven decisions that directly impacted revenue streams and cost-effectiveness.” Additionally, the infusion of BI in decision-making processes has improved collaboration and communication among different tiers of management, as emphasized by Hamad et al. (2021). This collaborative synergy facilitates a holistic understanding of business objectives, ensuring that decisions align with the overarching goals of the organization. In essence, the integration of business intelligence in Jordanian business companies not only enhances decision-making precision but also catalyzes a positive ripple effect throughout the entire organizational structure, contributing to sustained growth and competitiveness in the dynamic business landscape. Ahmad et al. (2020) defines business intelligence (BI) that “it is a set of techniques, procedures, and applications that help us transform raw data into meaningful information that can be used in decision making. It involves analyzing data through statistical methods. It combines data mining, data storage techniques, and various tools to extract more data-based information. It involves processing data and then using it to make decisions.” While Abdel Fattah (2023) defines artificial intelligence (AI) that “it is the field of computer science associated with making machines programmed to be able to think and solve problems like the human brain. These machines can perform human-like tasks and can also learn from previous experiences like humans. Artificial intelligence includes advanced algorithms and theories in computer science. It is widely used in robots and games.”

Decision-making involves the systematic process of choosing between options. It encompasses the identification of a decision, the collection of pertinent information, and the evaluation of alternative resolutions. Employing a step-by-step decision-making approach facilitates the making of intentional and well-thought-out decisions, as it aids in organizing relevant information and delineating various alternatives (Sansosti and Sansosti, 2012).

The research problem explores the extent to which business intelligence (BI) strategies contribute to enhancing decision-making capabilities in the specific context of Jordanian companies. Investigating this topic is essential due to the increasing importance of data-driven decision-making in contemporary business environments. By investigating the impact of BI on decision-making within the unique socio-economic and cultural context of Jordan, this research aims to provide valuable insights for both academia and practitioners. Understanding how BI tools and practices can effectively support decision-making in Jordanian business companies holds significant implications for improving organizational performance, competitiveness, and strategic planning in the region. Therefore, this topic requires an investigation to facilitate informed decision-making practices tailored to the needs and challenges of Jordanian business entities. The current study tries to answer the following research question: To what extent does the implementation of business intelligence (BI) strategies influence and enhance decision-making processes within Jordanian business companies?

Literature review

It includes theoretical framework and empirical studies.

Theoretical framework

The main role of business intelligence (BI) is to streamline decision-making processes across various companies. Wisna (2013) denotes that “the onset of economic globalization in the 1990s heralded heightened global competition, prompting the emergence of a new business landscape necessitating greater responsiveness from companies to both challenges and opportunities.” This shift has amplified the value of information and heightened the demand for it among all relevant stakeholders. According to Hmoud and his associates (2023), “BI has garnered significant traction among executives across diverse industries due to its capacity to enhance informed decision-making.” It shows an idea about the impact of business intelligence on promoting decision-making. Shehadeh and his colleagues (2023) states that “the fast-paced nature of today’s business world, combined with globalization, fierce competition, and the information revolution, has instigated profound changes in the business landscape”. The widespread adoption of business intelligence (BI) has become imperative for fostering economic growth in the global business arena, as modern organizations usher in a new era of decision-making. (Albelbisi et al., 2021; Kusuma and Darma, 2020). Neglecting to leverage these practical advancements can result in a loss of competitiveness, while prioritizing business intelligence has been demonstrated to enhance the chances of business success (Marei et al., 2023; Abusweilem, and Abualoush, 2019).

By uncovering the potential benefits and challenges associated with BI implementation in the Jordanian context, this study can assist companies in optimizing their decision-making frameworks to achieve greater efficiency and effectiveness. Kulkarni and his colleagues (2017) denote that “policymakers and regulatory bodies in Jordan can benefit from the insights generated by this research to formulate policies that encourage the adoption and integration of BI technologies in the business landscape, ultimately fostering economic growth and competitiveness.” Academically, this study contributes to the literature on business intelligence and decision-making by offering empirical evidence specific to the Jordanian business environment, thereby enriching the scholarly discourse and serving as a foundation for future research endeavors in this field. However, the research on the impact of business intelligence on decision-making in Jordanian business companies holds significant implications for organizational performance, economic development, and academic advancement. Niu and his colleagues (2021) indicate that “business intelligence plays a crucial role in extracting vital insights from diverse unstructured data sources, transforming them into actionable information. This enables companies to make informed policy decisions and enhance operational efficiency and productivity. However, organizations encounter several challenges in leveraging business intelligence for decision-making. These challenges include issues such as planning failures, insufficient preparation, resource constraints, and the ability to manage risks effectively.” Overcoming these hurdles is essential for organizations to maximize the benefits of business intelligence and optimize their decision-making processes.

Empirical studies

They show a clear idea regarding the impact of business intelligence (BI) on promoting decision-making in Jordanian business companies. These studies actually reinforce the process of progressive business intelligence in many companies that intend to achieve their success and improve their own situation. Hmoud and his colleagues (2023) conducted a study about Business intelligence in the field of academic libraries inJordan.

The popularity of business intelligence (BI) among executives across various industries has surged due to its potential to enhance decision-making processes. However, its application within higher education institutions (HEIs), despite generating substantial volumes of data, remains relatively unexplored. This study aims to delve into the factors driving BI adoption within HEIs, employing the Technology-Organization-Environment (TOE) framework as a conceptual lens. Drawing from existing BI literature, key factors within TOE contexts were identified. Through PLS-SEM modeling, quantitative data collected from 387 individuals holding management roles within HEIs in Jordan were analyzed. The findings highlight significant determinants of BI adoption in HEIs, including top management support, information culture, compatibility, organizational readiness, relative advantages, perceived complexity, information quality, and vendor selection. Notably, competitive pressure did not emerge as statistically significant. Information culture emerged as the most influential predictor, while complexity exerted a significant negative impact on BI adoption, indicating its role as a major obstacle. These findings provide valuable insights for HEI executives, offering guidance on the essential factors to consider for successful BI implementation.

In their 2022 study, Majali and colleagues investigated the relationship between business intelligence capabilities and decision quality within Jordanian telecommunications companies. The research aimed to scrutinize the pertinent factors of business intelligence (BI) contributing to decision quality in this context. To achieve this objective, a questionnaire was developed and administered to middle and top management personnel from various business departments utilizing BI tools in decision-making processes. A total of 103 respondents participated in the study. Employing Partial Least Squares Structural Equation Modeling (PLS-SEM) for measurement validation and hypothesis testing, the findings revealed a significant impact of all framework constructs on decision quality. Particularly, system quality emerged as the most influential construct for decision improvement, while information quality and service quality also served as significant predictors of decision quality. The study offers valuable insights for telecommunication firms, highlighting the critical role of BI systems in enhancing decision-making quality. Additionally, organizations already employing BI systems can utilize the findings as a theoretical foundation to prioritize factors aimed at improving decision quality.

Al-Momani and Al Assaf (2020) conducted a study on the effect of business intelligence on reinforcing decision-making. Effective decision-making is crucial for organizations to thrive in fiercely competitive markets. One of the key determinants of decision-making accuracy is the Management Information System (MIS). This study aimed to evaluate the influence of MIS on decision-making processes among managers in Five Star Hotels in Jordan. Employing a simple random sampling technique, 300 respondents were selected from the pool of managers and decision-makers within these hotels. Self-administered questionnaires were distributed to the chosen participants, allowing them to respond at their convenience. After a few weeks, 230 responses were received and deemed suitable for analysis. Structural Equation Modeling (SEM) using IBM-SPSS-AMOS 25.0 was employed to model and test the hypotheses. The findings revealed that MIS, encompassing Marketing Research, Marketing Record, Marketing Intelligence, and Decision Support System, significantly impacts the decision-making process, contributing approximately 97% to decision-making within the five-star hotels in Jordan. Furthermore, the analysis of MIS components demonstrated that all components, except Marketing Research, exert a significant influence on Management Decision Making among Five Star Hotels in Jordan.

Research Methodology

This study is quantitative. It analyzes the impact of business intelligence on promoting decision-making in Jordanian business companies. It adopts an analytical case study approach, employing the analytical descriptive method, which is deemed appropriate for investigating social phenomena. According to Kas and colleagues (2019), the quantitative approach is characterized by its objectivity, deductive nature, and reliance on numerical quantification for result generalization. Such methods are utilized to explore predetermined concepts, constructs, and hypotheses fundamental to a given theory. The primary objective of this study is to explore the positive impacts of business intelligence on decision-making within Jordanian business companies. Consequently, it necessitates the development of a suitable scale to elucidate its objectives, thereby encompassing the study’s content. The research design is depicted in the following Figure 1.

Figure 1.

The research design framework.

The construction of the scale for this study relies on two variables that align with its objectives. This scale includes 10 items aimed at elucidating the impact of business intelligence on enhancing decision-making within Jordanian business companies (Refer to Appendix 1 at the end of this study). The study’s target population comprises all Jordanian business companies, with a sample size of 30 managers randomly selected from these companies. Several guidelines are adhered to when selecting a research instrument. According to Rumsey (2013), “validity” is defined as the test’s ability to assess what it intends to measure, addressing the ease with which conclusions drawn from a small sample can be extrapolated to a larger population. This 10-item scale is evaluated by a group of doctors and experts in the same field, and subsequently distributed to the study participants. This scale was adopted as the data collection tool within the research community, serving to assess the tool’s stability and determine the consistency of its items with the study’s objectives and primary question (Cronbach alpha). The following Table 1 shows the degree of validity of the research tool.

Table 1.

Tool stability coefficient (cronbach alpha).

No.	Parameter	Cron
1	Business intelligence and promoting decision-making	0.8530

Research Tool

According to the requirements of this study, the scale is built by the researcher. The study consists of an independent variable “Business intelligence” and dependent variable “Decision-making”. The scale includes 10 items. It is judged by a jury of experts and specialized doctors who have the same major. According to the experts of this major, some items are already added, omitted, and justified. It mainly concentrates on the impact of business intelligence on promoting decision-making in Jordanian business companies. According to Likert’s five-point scale, the participants’ answers are strongly agree, agree, neutral, disagree, and strongly disagree.

Study procedures and statistical analysis

Following the preparation of the scale, it was distributed among participants currently employed in Jordanian companies. The researcher elucidated the study’s objectives and provided guidance on how to respond to the scale items. Subsequently, participants were requested to respond accurately to the items. Their responses underwent thorough statistical analysis, using the SPSS statistical program to address the research question. Various statistical tests, including Standard Mean, Standard Deviation, Descriptive Frequency Test, T-Tailed Significance, Variance Test, and others as necessary, were conducted. Moreover, the respondents’ comments and interpretations were carefully considered. The findings were then extracted and meticulously discussed. Finally, recommendations were formulated based on the research outcomes.

Research Results

They are discussed and answered as follows: The main research question is: To what extent does the implementation of business intelligence (BI) strategies influence and enhance decision-making processes within Jordanian business companies? For the sake of developing business intelligence, positive decision-making is needed. A positive decision plays an important role in reinforcing the process of business intelligence. Table 2 shows descriptive statistics and significance testing results.

Table 2.

Clarifies the mean, standard deviation, frequency test, the variance test, and 2-tailed significance (Alfa = or less than 0.05).

Items of the scale	Test Value = 0
	Df	Mean	Sta. deviation	Alpha or sig. (2-Tailed)	95% confidence interval of the difference
	Df	Mean	Sta. deviation	Alpha or sig. (2-Tailed)	Frequency	Variance
Item 1	30	4.3000	1.18766	0.000	80.0%	1.332
Item 2	30	4.1500	1.23582	0.000	75.0%	0.834
Item 3	30	4.2000	1.19766	0.000	85.0%	1.332
Item 4	30	4.6500	0.48636	0.000	83.0%	0.564
Item 5	30	4.6100	0.68156	0.000	91.0%	0.786
Item 6	30	4.4800	0.68733	0.000	92.0%	0.765
Item 7	30	4.5600	0.82917	0.000	79.0%	0.657
Item 8	30	4.6100	0.67382	0.000	94.0%	0.876
Item 9	30	4.5800	0.75815	0.000	84.0%	0.786
Item 10	30	4.4500	0.118966	0.000	81.0%	1.332

The above table shows that the average Mean of the ten items (See Appendix 1 at the end of this research) is 4.120 with an average Standard Deviation (SD) 0.83,290. This Mean is considered high. Besides, the average Frequency of the above items is 84.6%. The average Variance of these items is 0.7. The two tailed Significance is 0.00 %. This means that Alpha is less than 0.05%. If Alpha = or less than 0.05%, it means that the result is positive. According to the above participants’ responses, there is a positive impact of using business intelligence on promoting decision-making in Jordanian business companies. The employees of the company have sufficient skills in the field of enhancing business intelligence since they actually use it in their workplace. Their company uses business intelligence tools and techniques to gather and analyze data for decision-making purposes. Business intelligence can contribute to making informed and effective decisions within their company. It could be integrated into the decision-making processes of their company. The employees are satisfied with the quality and relevance of the insights and reports generated by their company’s business intelligence systems. The use of business intelligence tools can improve the speed at which decisions are made within their company. It can also enhance the accuracy and reliability of decisions made within their company. Finally, it can provide their company with a competitive edge in the Jordanian business market.

The research findings suggest a strong positive relationship between the implementation of business intelligence (BI) strategies and the enhancement of decision-making processes within Jordanian business companies. It is evident from the responses of the participants that the utilization of BI tools and techniques is widespread within these companies, indicating a notable level of adoption and proficiency among employees. This high level of skill and utilization suggests a culture of embracing data-driven decision-making, which is crucial in today’s competitive business landscape. Moreover, the satisfaction expressed by employees regarding the quality and relevance of insights generated by BI systems underscores their perceived value and effectiveness in facilitating informed decision-making. This indicates that BI is not merely a technological investment but a strategic asset that empowers organizations to make timely and accurate decisions, ultimately contributing to their overall performance and competitiveness in the market. However, the findings highlight the multifaceted benefits of BI implementation, including improved decision-making speed, accuracy, and competitiveness. The ability of BI tools to streamline data analysis and provide actionable insights enables companies to respond promptly to market changes and make decisions based on reliable information. Moreover, the integration of BI into decision-making processes suggests a shift towards a more data-driven organizational culture, where decisions are informed by evidence rather than intuition alone. This not only enhances the efficiency and effectiveness of decision-making but also positions companies to capitalize on opportunities and mitigate risks effectively. Overall, the positive impact of BI on decision-making processes in Jordanian business companies underscores the importance of investing in BI strategies as a means to drive organizational growth and success in today’s dynamic business environment. The above results align with Birger Wernerfelt’s (1984) theory: Resource-Based View (RBV). It suggests that a firm’s competitive advantage stems from its unique resources and capabilities. In the context of this research, business intelligence (BI) can be viewed as a valuable resource that enables companies to gather, analyze, and utilize data effectively for decision-making. According to RBV, companies with superior BI capabilities are likely to outperform their competitors by making more informed and timely decisions. This theory emphasizes the importance of leveraging internal resources, such as BI tools and skilled employees, to achieve sustainable competitive advantage in the marketplace. Through the ideas of RBV, the impact of BI on decision-making in Jordanian business companies can be analyzed in terms of how it contributes to the firm’s resource base and enhances its ability to create value and achieve strategic objectives. The previous results also agree with Majali and his colleagues’ (2022) study that indicates a positive impact of business intelligence on enhancing decision-making.

Conclusion

This research clarifies the significant impact of business intelligence (BI) on decision-making processes within Jordanian business companies. The findings denote to a positive correlation between the utilization of BI tools and the promotion of informed and effective decision-making. Notably, the participants’ responses indicate a high level of proficiency among employees in using BI, suggesting a culture that values data-driven approaches to decision-making. Moreover, the widespread adoption of BI tools and techniques within the companies demonstrates their recognition of the importance of leveraging data for strategic insights. As businesses continue to navigate an increasingly complex and dynamic environment, investing in BI strategies emerges as a critical imperative for driving sustainable growth and success in Jordanian business companies.

Footnotes

Declaration of conflicting interests

The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Funding

The author(s) received no financial support for the research, authorship, and/or publication of this article.

ORCID iD

Ahmad Ali Eyadat

Appendix

Dear manager: …………………… (Your name is not necessary)

This study is conducted for having an idea about the impact of business intelligence on promoting decision-making in Jordanian business companies. Please read the following items and answer them carefully. Your answers are important for investigating the aim of this study. Your answers will also be discussed carefully and accurately.

No.	Item	Strongly agree	Agree	Neu-tral	Dis-agree	St. Dis-agree
1	There is a positive impact of using business intelligence on promoting decision-making in your company
2	The employees of your company have sufficient skills in the field of enhancing business intelligence since they actually use it in their workplace
3	Your company utilizes business intelligence tools and techniques to gather and analyze data for decision-making purposes
4	Business intelligence contributes to making informed and effective decisions within your company
5	Business intelligence could be integrated into the decision-making processes of your company
6	Your employees are satisfied with the quality and relevance of the insights and reports generated by your company’s business intelligence systems
7	The use of business intelligence tools can improve the speed at which decisions are made within your company
8	Business intelligence can enhance the accuracy and reliability of decisions made within your company
9	Business intelligence can provide your company with a competitive edge in the jordanian business market.
10	Your company can provide adequate resources, training, and support for the effective implementation of business intelligence initiatives

Author biography

Ahmad Ali Eyadat, I am currently serving as an assistant professor at Irbid National University. I have received my Ph.D. in Business Intelligence and Data Analytics from Westcliff University, California, USA, Master’s degree in Business Administration from California University of Management and Sciences, California, USA, and a Bachelor of Science Degree in Forensic Science from Jordan University of Science and Technology, Jordan. My research interests include Business Intelligence, Management Information System, Leadership, and Internet of Things.

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