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Business intelligence and organizational performance: The role of alignment with business process management

Dalia Suša Vugec (Department of Informatics, Faculty of Economics & Business, University of Zagreb, Zagreb, Croatia)
Vesna Bosilj Vukšić (Department of Informatics, Faculty of Economics & Business, University of Zagreb, Zagreb, Croatia)
Mirjana Pejić Bach (Department of Informatics, Faculty of Economics & Business, University of Zagreb, Zagreb, Croatia)
Jurij Jaklič (Academic Unit for Business Informatics and Logistics, School of Economics and Business, University of Ljubljana, Ljubljana, Slovenia)
Mojca Indihar Štemberger (Academic Unit for Business Informatics and Logistics, School of Economics and Business, University of Ljubljana, Ljubljana, Slovenia)

Business Process Management Journal

ISSN: 1463-7154

Article publication date: 30 March 2020

Issue publication date: 16 November 2020

3560

Abstract

Purpose

Organizations introduce business intelligence (BI) to increase their performance, but often, this initiative is not aligned with the business process management (BPM) initiative, which also aims to improve organizational performance. Although some findings from the literature indicate that BI implementation has a positive impact on organizational performance, the impact seems to be indirect. Therefore, the purpose of this study is to enhance the understanding of how BI maturity is translated into organizational performance. Alignment of BI and BPM initiatives seems one possible way for creating business value with BI, particularly because BI enables process performance measurement and management, which allows the BI initiative to become more business focused.

Design/methodology/approach

A questionnaire was prepared and used to collect data in Croatian and Slovenian organizations with more than 50 employees. A BI–BPM alignment measurement instrument was developed for the purpose of this study using the recommended process of scale development and validation. A total of 185 responses were analyzed by the structural equation modeling technique.

Findings

Our results provide evidence that the effect of BI on organizational performance is fully mediated by alignment of BI and BPM initiatives, and therefore, BI business value can be generated through the use of common terminology and methodologies, as well as a strong communication between BI and BPM experts, managers and teams in order to coordinate the two initiatives.

Originality/value

This study has responded to the call for better understanding of how the impact of BI on organization performance is realized. It confirmed that BI and BPM initiatives should be aligned in order to give BI a business value.

Keywords

Acknowledgements

This research has been partially supported by the Croatian Science Foundation under the project PROSPER – Process and Business Intelligence for Business Performance (IP-2014-09-3729) and partially by the Slovenian Research Agency under the project Business Analytics and Business Models in Supply Chains (grant no. J5-9329).

Citation

Suša Vugec, D., Bosilj Vukšić, V., Pejić Bach, M., Jaklič, J. and Indihar Štemberger, M. (2020), "Business intelligence and organizational performance: The role of alignment with business process management", Business Process Management Journal, Vol. 26 No. 6, pp. 1709-1730. https://doi.org/10.1108/BPMJ-08-2019-0342

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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