Tiara Prisca Sabilla, Rinaldi Bursan

Utilization of Business Intelligence to Improve Operational Efficiency of SMEs in Lampung

Introduction

Utilization of business intelligence to improve operational efficiency of smes in lampung. Unlock how Business Intelligence boosts SME operational efficiency, sustainable performance, and decision-making in Lampung, considering organizational readiness & digital literacy.

Abstract

In light of the moderating effects of organizational readiness (OR) and digital literacy (DL), this study attempts to examine how business intelligence (BI) affects the sustainable performance and decision-making quality of SMEs in Lampung Province. This study used a convergent parallel design and a mixed methods approach, integrating both qualitative and quantitative data to offer a thorough insight. In-depth interviews with 15 important informants provided qualitative data, while purposive sampling was used to choose 200 SMEs as respondents for quantitative data. The outer and inner models were evaluated in a quantitative study using Partial Least Squares Structural Equation Modeling (PLS-SEM), and thematic analysis was used to examine the qualitative data. The findings demonstrated that BI significantly influences sustainable performance (β=0.24, p<0.001) and decision quality (β=0.65, p<0.001), both directly and via decision quality mediation (β=0.58, p<0.001). The association between BI and decision quality was found to be strengthened by OR and DL. SME players stress the significance of rapid, precise, and integrated data access in enhancing the precision of company strategy, and qualitative findings corroborate the quantitative findings. This study offers useful suggestions for boosting SMEs' competitiveness in the age of digital transformation.

Review

This study offers a highly relevant investigation into the impact of Business Intelligence (BI) on the operational efficiency and long-term viability of Small and Medium-sized Enterprises (SMEs) in Lampung Province. By examining BI's influence on sustainable performance and decision-making quality, while crucially factoring in the moderating roles of organizational readiness (OR) and digital literacy (DL), the research addresses a critical gap in understanding how SMEs can effectively harness digital tools for growth in the current economic landscape. The focus on a specific regional context further enriches the understanding of BI implementation challenges and opportunities for developing economies. Methodologically, the study employs a rigorous convergent parallel mixed-methods design, integrating both qualitative and quantitative data collection and analysis to provide a comprehensive perspective. Quantitative analysis, conducted using PLS-SEM on data from 200 SME respondents, revealed statistically significant findings: BI positively impacts sustainable performance (β=0.24, p<0.001) and significantly enhances decision quality (β=0.65, p<0.001). A key insight is the mediating role of decision quality in the relationship between BI and sustainable performance (β=0.58, p<0.001), indicating that better decisions drive sustainability. Moreover, both OR and DL were found to strengthen the association between BI and decision quality, highlighting their importance. These quantitative findings were robustly supported by qualitative data from 15 in-depth interviews, which underscored the practical necessity of rapid, precise, and integrated data access for effective business strategy among SME players. The findings of this research provide valuable and actionable insights for SMEs, policymakers, and industry stakeholders seeking to enhance competitiveness in the digital transformation era. By clearly demonstrating the direct and indirect benefits of BI, and emphasizing the prerequisite roles of organizational readiness and digital literacy, the study offers practical guidance for investment in technology and human capital development. The integrated qualitative and quantitative approach lends significant credibility to the conclusions, making this a foundational piece for understanding BI adoption and its strategic implications for sustainable SME growth in emerging markets.

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