Exploring Success Factors for Business Intelligence System (BIS) Implementation

Readiness: A Study on Malaysia Banking Sector

By

Muhamad Faizal Bin Hanafi

Project Paper Submitted in Partial Fulfilment of the Requirements

for the Degree of Master of Business Administration

Universiti Tun Abdul Razak

February 2022
 DECLARATION

I hereby declare that the case study is based on my original work except for quotations and
citations that have been duly acknowledged. I also declare it has not been previously or
concurrently submitted for any other degree at Universiti Tun Abdul Razak (UNIRAZAK) or
other institution.

Signature :

Name :

Date :

ii
 ACKNOWLEDGEMENT

I would like to take this opportunity to express my gratitude to my supervisor Asst. Prof. Dr.

Azrul Fazwan Kharuddin who have dedicated his valuable time and guidance throughout the

process completing MBA Project Paper. His support and advice are very much appreciated as

it has assisted in enhancing my project outcome, without whom I would not have finished the

program as well as his input and guide are very beneficial to ensure a successful analysis to be

delivered.

Special thanks to my wife, mother, family members and colleagues for their

encouragement and understanding throughout the duration of my pursuit of this MBA

program. Their encouragement and understanding have been crucial for my timely

completion of this study.

I would also like to thank all the lecturers, faculty members and fellow students

especially Abdul Rahman Omar Amiah, who have dedicated their valuable time and undivided

effort to ensure the timely completion of my program. Lastly, my special thanks to Prof. Dr.

Benjamin Chan Yin Fah, Dean of the Graduate School of Business, who has been instrumental

in ensuring that we were guided by a team of enthusiastic and dedicated faculty members. His

exemplary leadership is deeply appreciated.

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 TABLE OF CONTENTS

DECLARATION II
ACKNOWLEDGEMENT III
LIST OF TABLES VII
LIST OF FIGURES VIII
ABSTRACT IX

CHAPTER 1: INTRODUCTION
1.1 Background Of Study 1
1.2 Problem Statement 3
1.3 Research Objectives 6
1.4 Research Question 6
1.5 Significance Of The Study 7
1.6 The Organization Of The Study 9

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction 10
2.2 Underpinning Theory And Theoretical Framework 10
2.2.1 Business Intelligence 11
2.2.2 Critical Success Factors Of Business Intelligence 13
2.2.3 Significance Of Business Intelligence Systems
(BIS) 17
2.2.4 Overview Of Banking Sector Of Malaysia 19
2.3 Empirical Research 20
2.4 Conceptual Model Framework 31
2.5 Research Hypothesis 33
2.6 Summary Of Chapter 2 34

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Introduction 35
3.2 Research Design 35
3.3 Study Population And Sampling Procedures 36
3.4 Research Philosophy 38
3.5 Research Approach 38
3.6 Types Of Investigation 39

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3.7 Data Collection Method 39
3.8 Operationalisation And Measurement 40
3.8.1 Independent Variables 40
3.8.2 Mediating Variables 46
3.8.3 Dependent Variables 46
3.8.4 Reliability Of Operationalisation And Measurement Development 47
3.9 Data Analysis Techniques 49
3.9.1 Descriptive Analysis Technique 49
3.9.2 Inferential Analysis Technique 49
3.10 Summary Of Chapter 3 50

CHAPTER 4: RESULTS AND DISCUSSION

4.1 Introduction 52
4.2 Survey Response Analysis 52
4.2.1 Respondent Demographic Analysis 52
4.3 Goodness Of Data 55
4.3.1 Reliability 55
4.3.2 Validity 57
4.4 Descriptive Analysis 62
4.5 Confirmatory Factor Analysis (CFA) 63
4.5.1 Model Fit For Each Factor 64
4.5.2 Model Fit For Overall Model 72
4.5.3 Structural Equation Model Path 74
4.6 Multiple Regression 75
4.7 Hypothesis Testing 77
4.8 Summary Of Chapter 4 80

CHAPTER 5: CONCLUSION
5.1. Introduction 81
5.2 Success Factors For Business Intelligence System (Bis) Implementation
Readiness For Banking Sector In Malaysia 81
5.2.1 Perception Of The Comparative Advantage Of Business Intelligence
System (Bis) 82
5.2.2 Perception Of Business Intelligence System’s (Bis) Complexity 82
5.2.3 Flexible And Appropriate Technological Infrastructure
Framework 83
5.2.4 Management Support 83

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 5.2.5 Organizational Readiness 84
5.2.6 Competitive Pressure 84
5.2.7 Other Findings 85
5.3 Implications Of The Study 86
5.3.1 Contribution To Theory 86
5.3.2 Practical Implications 87
5.4 Limitation Of The Study 88
5.5 Direction For Future Research 89
5.6 Conclusion 91
5.7 Summary Of Chapter 5 93
RERERENCES 95
APPENDICES 112

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 LIST OF TABLES

Page

Table 2.1: Summary of Recent Empirical Study on the Area 26

Table 2.2: Theoretical Framework 30
Table 3.1: Independent Variable Operationalisation Measurement 40
Table 3.2: Dependent Variable Operationalisation Measurement 46
Table 3.3: Construct Cronbach's alpha coefficients (Pilot test, n=25) 47
Table 4.1: Respondents Profiles (n=161) 53
Table 4.2: Construct Cronbach's alpha coefficients 54
Table4.3: Average Variance Extracted (AVE) and Composite Reliability (CR)
characteristics, criteria and formula 56
Table 4.4: Construct Average Variance Extracted (AVE) and Composite Reliability (CR) 57
Table 4. 5: Descriptive Analysis 61
Table 4.6: Criteria for Model Fit Assessment 63
Table 4.7: Confirmatory Factor Analysis (CFA) Overall Model Fit Assessment (Before
Modification) 71
Table 4.8: Confirmatory Factor Analysis (CFA) Overall Model Fit Assessment (After
Modification) 72
Table 4.9: Structural Equation Model (SEM) - Overall Model Fit Assessment 74
Table 4.10: R-squared value and the relationship strength 74
Table 4.11: Constructs P-Value 75
Table 4.12: Constructs Beta Weight 76
Table 4.13: Summary Result of Hypothesis Testing 76

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 LIST OF FIGURES

Page

Figure 2.1: Structure of the Financial Sector (by asset share), 2011 (Bank Negara Malaysia,
2011) 21
Figure 3.1: Detailed of Research Design 35
Figure 4.1: Respondent’s Age Distribution 52
Figure 4.2: Respondent’s Gender Distribution 52
Figure 4.3: Respondent’s Job Position 53
Figure 4.4: Confirmatory Factor Analysis (CFA) - Perception of the comparative advantage of
Business Intelligence System 64
Figure 4.5: Confirmatory Factor Analysis (CFA) - Perception of business intelligence system’s
(BIS) complexity 65
Figure 4.6: Confirmatory Factor Analysis (CFA) -Flexible and appropriate technological
infrastructure framework 66
Figure 4.7: Confirmatory Factor Analysis (CFA) - Management Support 67
Figure 4.8: Confirmatory Factor Analysis (CFA) - Organization Readiness 68
Figure 4.9: Confirmatory Factor Analysis (CFA) - Competitive Pressure (Industry and
Competitors’ Absorptive Capacity) 69
Figure 4.10: Confirmatory Factor Analysis (CFA) - Business Intelligence Implementation
Readiness 70
Figure 4.11: Confirmatory Factor Analysis (CFA) - Before Modification 71
Figure 4.12: Confirmatory Factor Analysis (CFA) - After Modification 72
Figure 4.13: Structural Equation Model Path – Overall Model 73

viii
Abstract of the project paper submitted to the Senate of Universiti Tun Abdul Razak in partial
fulfilment of the requirements for the Master of Business Administration.

Exploring Success Factors for Business Intelligence System (BIS) Implementation

Readiness: A Study on Malaysia Banking Sector

By
Muhamad Faizal Bin Hanafi

February, 2022

Throughout the year, there is the growing utilization and the implementation of Business
Intelligence (BI) systems as part of innovation to support decision making process the
organization’s operation. In Banking industry, there are millions of data generated and
transacted on daily basis, therefore implementing the BIS as for better management decisions
play crucial roles on for industry’s survival and sustainability. Business intelligence systems
(BISs) are an important tool for today's challenging business operations, as they have a
substantial impact on business performance. However, BIS implementation and readiness may
be influenced by a various of internal and external factor. This study is aimed to explore the
key success factors that influenced the banking sector in Malaysia to adopt the BI system based
on simplified Technology, Organization, and Environment (TOE) framework and test the
relationship between the six (6) independent variables: perception of the comparative
advantage, perception of business intelligence system’s (BIS) complexity, flexible and
appropriate technological infrastructure framework, management support, organizational
readiness, competitive pressure against Business Intelligence System (BIS) implementation
readiness. For the study evaluation purpose, quantitative approach uses and designs using a
five-point Likert Scale and 161 data collected using questionnaire survey. For data analysis,
the demographic and descriptive analysis techniques were adopted for data interpretation
purpose using IBM SPSS. Confirmatory Factor Analysis (CFA) and Structural Equation
Modelling (SEM) had been developed using IBM AMOS to create better understanding how
for overall model representation and to confirm the factor structure that extracted in the
exploratory factor analysis. With the presence of multiple variables on the study, the multiple
regression model develops as to examine and test the relationship of the success factor of BIS
implementation readiness on Malaysian Banking industry. The results shows that three
independent variables (perception of the comparative advantage, flexible and appropriate
technological infrastructure framework, organizational) have statistically significant
relationship towards the BIS implementation readiness. However, three independent variables

ix
(perception of Business Intelligence System’s (BIS) complexity, organizational readiness and
competitive pressure) does not attain the significant relationship on the dependent variable of
the study. Theoretical implication in this present study provides a validation to TOE
framework empirically regard to Malaysia banking industry context and practically offer
useful as guidelines to organization to assess the readiness to adopt this system whereby the
application of guidelines could possibly reduce the risk of failure rate of the system’s
implementation. The research limitation such as time constraints and unable to conduct initial
research design of qualitative method of interview session with targeted respondents of Subject
Matter Expert (SME) after completion of quantitative described and discussed on this research.
The direction for future research described and its role in assisting the studies in the future
such as the recommendation to conduct future research using mixed method as well to conduct
it on research on targeted respondent as create effective results. This study is beneficial for the
banking sector of Malaysia as the benefits of the business intelligence system (BIS) are
provided along with the critical success factors for the purpose of comprehending and
managing the challenges arising from the execution of the business intelligence system (BIS)
plan.

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 CHAPTER 1
INTRODUCTION

1.1 Background of Study

Throughout the years the companies have implemented the Information technology

systems to support the collection, processing and distribution of the information that results in

the growth and development of the business. In this era of hyper-competition and technological

advancements Business Intelligence Systems (BIS) has attracted the attention of decision

makers and executives due to their ability to provide a complex and competitive information

to help the company to make better decisions, improve customer satisfaction, provide accurate

reports and also increase the competitive advantage over other competitors (Ain et al., 2019).

In today’s business environment the survival of an organization depends upon its ability to

respond to new business opportunities that could affect their growth in a positive or a negative

way.

BIS has been considered as high priority of many companies because it has a

remarkable impact on the performance and growth of the company. Implementing BIS plays

a vital role in understanding of the business status, measures the performance of the

organization and create better opportunities for the organization by improving relationship

with the stake holders (Zaied et al. 2018). This system provides readily available data that is

that is absorbed by the business users and lead to the growth and improvement of the business

performance. As the modern banking sector is adapting progressive changes due to this the

need of intelligence system increase dramatically.

Business intelligence (BI) in the banking sector is one of the most important processes

with the integration of the new applications nowadays and can be incorporated into multiple

fields. The industry of financial services is rapidly progressing and therefore required to

incorporate the new strategies (Mesaros et al., 2016). It was noticed that there were some

changes identified in the industry due to the various issues and challenges such as

deregulations, globalization, competition with the various financial organisations that required

1
the companies to think about the integration of the new strategies (Eder & Koch, 2018). There

is a need to bring technological innovations so that the companies can reform the policies and

integrate the technology and development. According to Susanto et al (2011), technological

advancements have introduced business risks and security threats that are a serious concern

for business leaders.

In the banking sector, there were records of millions of customer's data generated on

the daily basis. This record maintenance of the customer’s personal and financial data is the

responsibility of the banks so that more customers can avail the services of the banking system.

It was observed that there is growing competition in the banking sector that enhances the need

for the banks to use the BI strategies (Zafary, F., 2020). Although, the implementation of the

BI system is costly and involved complexities that required the adoption of the suitable

infrastructure along with the utilisation of the resources for the banks to ensure the

implementation for the long periods (Daneshvar Kakhki & Palvia, 2016). In addition, it was

found that the BI system is the new technology-driven method used for the data analysis and

delivering the information that assists the managers, executives and workers to inform them

about the business decisions.

The study highlighted the functions of the BI technologies comprised of reporting,

analytics, data mining, dashboard development, processing of the complex events,

benchmarking, management of the business performance for the employees, text mining,

processing of events and analysis of the obtained data (Horakova & Skalska, 2013). The

strategies of BI are employed for the enhancement and facilitation of the appropriate decisions

in the business. These strategies include the integration of the applications, technologies and

practices for the collection and analysis of the business information. The use of BI in the

banking system for the analysis of organisational data was found helpful for the banks to

streamline the operational efficiencies for the increase of sales and marketing along with the

development of the programs for customer services (Kfouri & Skyrius,2016).

It also helps to mitigate the risks by developing more suitable processes of risk

management. The integration of the BI system in the banking sector was found helpful due to

2
the analytics software for creating the interactive data visualization at the desktop level by the

customers of banks and the other companies associated with the financial services. The

significance of utilising the techniques of BI in the banking sector is well known due to more

understanding of purchasing behaviours of the customers and supporting the planning and

budgeting processes. Additionally, the efficacy of marketing campaigns can be measurable

and enhanced by using BI techniques. The predictions of sales are possible along with the

financial estimation in the banking sector by bringing innovation in the banking sector due to

the applications of BI procedures (Azma & Mostafapour, 2012). Furthermore, the operational

performances can be analysed and improved in the banking sector which also enhanced the

satisfaction of the customers.

1.2 Problem Statement

For the survival of bank firms in today’s competitive business environment the bank

managers need to have problem solving capability and should focus on BI system to fulfil the

expectation of their customers (Taneja et al.2015). As the financial industry is changing

rapidly the issues related to the financial institution also rises that triggered the need of

Business Intelligence in those sectors (Owusu et al. 2017). Countries like Malaysia where in

modern network banking there is overlaps of the customer base a combination of multi

segments is required for the smooth functioning of the banks. A lot of Business Intelligence

and Analytics (BIA) tools are found in Banking Sectors as they have to manage a large volume

of data in their bank operations, and in the modern banking networks, due to higher market

competition, thus there need for the Bank to be more intelligence has increased rapidly, and it

is also a tool for the progression of this sector. However, the implementation of Business

intelligence system is complex and expensive as it requires a suitable infrastructure and

resources for a prolong period of time and also demands a huge amount of resources and quite

a few enterprise stakeholders for a number of years. The BI system is still evolving and

therefore requires further research to highlight the Critical Success Factors (CSF) that

contributes to the success of the implemented BI systems (Yeoh et al. 2010). These critical

3
success factors are associated with the tasks that are required to be completed for the

company’s success (Hawking et al., 2010).

There is an increasing number of customers in banks in comparison with the previous

years. This allows the banking organisations to measure the big data of the customers that

increase the satisfaction of the customers. The lack of handling and management of the

customer’s data in the banks may increase the problems related to quality assurance and risk

management. Dicuonzo et al. (2016) suggested that there must be a deeper understanding

regarding the data management and risk management strategies in the banks to handle a large

number of customers. The BI techniques can be used for solving the problems regarding the

quality assurance of the procedure and risk management related to data privacy. It was

observed that there is increasing competition in the banks due to a large number of banks in

developed and developing countries. Each bank has different branches which handle a large

number of customers.

The personal and professional data of the customers and their privacy must be ensured

by the banks to avoid data leakage and stealing of the financial statements. In addition, the

change in the business models can bring new challenges for the banking organisations to deal

with the stakeholders that involve the managing directors, employees, customers and other

partners. Thus, business intelligence is utilised to ensure that information is consistent across

the enterprise and to diverse stakeholders within an organisation (Ramakrishnan, 2010). In

Malaysia, the banking sector also encountered these challenges due to the rise of customer

satisfaction and retention. Security breaching is one of the common issues faced by the banks

due to the data leakage related to the personal information of the banks and customers and

their financial information. These risks can be managed by the integration of new technologies

and applications that can reduce and prevent the risks related to the loss of information (Abai

et al., 2015).

The combination of the multi-segments and multiple factors is required for the smooth

functioning of the system in the banks in Malaysia. Due to the increased issues and challenges

in the banking sector because of the increasing number of customers, there is a need to

4
integrate the applications and technologies in the banks so that the large amount of the data

related to the customer and banks can be secured (Qushem et al., 2017). The competition

within the banks in Malaysia was also increased due to the use of modified technologies in

few banks that offered several facilities for the customers to enhance their quality services and

risk mitigation strategies. The use of BI technologies was found helpful for the banks to modify

their system and provide the customers with the upgrading facilities through which the

business employers can do the dealings with their international clients (Teoh et al., 2014). The

opportunities for the customers using the banks with the BI applications and technologies were

found to be increased. A large amount of data management and handling and risk management

can be possible due to the use of BI technologies in the banking sector.

Despite the increase of the challenges in the banking sector, there are a smaller number

of research studies carried out on exploring the aspect of using the BI technologies in the

banking sector and how it can be effective in enhancing the benefits and mitigating the risks

for the banks, particularly in Malaysia (Nofal & Yusof, 2013). Furthermore, the proposed

study seeks to close the knowledge gap in understanding the key factors that influenced the

organization to adopt the BIS, specifically in context of banking sector in Malaysia. This thesis

is design as comprehensive empirical study in exploring the feasibility of implementing the

BIS in Malaysia banking industry, as well as the assessment on the readiness of banking

industry to adopt the system. Previous empirical research has covered the critical success

factors on organization to adopt BIS on their organization in global context (outside Malaysia)

and within Malaysia as well. However, there is no specific empirical research was conducted

to explore and examine the success factors in context of banking industry in Malaysia. With

regard to close the knowledge and research gap, there is a need to study the factors that

contribute to the readiness of BI in the banking sector of Malaysia. Besides, the thesis seeks

to explore the efficacy of using BI technologies in the banking sector so that pros and cons can

be evaluated effectively. The present study is therefore designed to critically evaluate the in-

depth information regarding the use of BI techniques to deal with the challenges of the banking

sector. The study findings will provide in depth understanding the factors that influence bank

5
to adopt the BIS, therefore helps to bank to prevent or reduce failure rate during BIS

implementation phase, and subsequently BIS can optimally offer the most effective in

enhancing its benefits and mitigating the risks for the banks.

1.3 Research Objectives

This research aims to explore the critical success factors for the implementing Business

Intelligence system in the Malaysian Banking sector. To achieve the aim of the study, some

specific objectives have been made to gather complete details regarding the topic. Following

are the main objectives of the research:

 To study the relationship the perception of the comparative advantage of Business

Intelligence System (BIS) toward the implementation readiness of the systems

 To examine the relationship of the perception of Business Intelligence System’s

(BIS) complexity on Business Intelligence System (BIS) implementation

readiness

 To analyse the roles and the relationship of the flexible and appropriate

technological infrastructure framework towards Business Intelligence System

(BIS) implementation readiness

 To explore the relationship of the management support on the implementation

readiness of the systems

 To study and explore the relationship of organizational readiness to Business

Intelligence System (BIS) implementation readiness

 To study the relationship of the competitive pressure factor toward the

implementation readiness of the Business Intelligence System (BIS)

1.4 Research Question

The research question has been created to get in-depth information regarding the topic;

these insights can be combined to achieve the complete details regarding the topic of the

research. The main question lie on the topic research are to define what are the factors that

6
contribute to the implementation readiness of business intelligence in Banking in Malaysia;

whereby the it has been elaborate into some of specific research question. Following is the

research question:

 What is the role of the perception of the comparative advantage of Business

Intelligence System (BIS) and its relationship on the adoption of Business Intelligence

System (BIS)?

 What is the relationship of the perception of Business Intelligence System’s (BIS)

complexity and its impact on Business intelligence implementation readiness?

 What is the role of the flexible and appropriate technological infrastructure framework

and its relationship on the adoption of Business Intelligence System (BIS)?

 What is the role of the management support and its relationship on the adoption of

Business Intelligence System (BIS)?

 What is the role of the organization readiness and its relationship on the adoption of

Business Intelligence System (BIS)?

 What is the relationship of the competitive pressure (industry competition and

competitor’s absorptive capacity) effect on n the adoption of Business Intelligence

System (BIS)?

1.5 Significance of the study

In the world today, new innovations are introduced and launched in the market each

day. Business intelligence systems are playing significant role in boosting the banking sectors

globally. As study suggests (Acheampong and Moyaid, 2016), organizations who opt business

intelligence systems get more benefits in their banking sectors. Business intelligence (BI)

systems provide assistance in making good decisions, provides faster and better reporting and

increased revenues etc. moreover, the study illustrates that by the fastest growth in the business

markets each day, companies and organizations focus on the adoption of better technologies

and plans that assist them in spreading their business wide. Another study (Owusu et al., 2017)

7
claims that banking sector needs to be updated with all the consequences and issues that are

the part of business world.

Organizations should have a grip on making decisions. Innovative technologies and

software are installed in the departments to adopt better policies and interventions in order to

engage customers and clients with the organization. Furthermore, it has been noticed in the

key findings that every organization have a concern about the frauds, risk managements,

product management and the prevention from losses. Business intelligence (BI) systems have

millions of data stored in them that have been kept confidential due to privacy concerns. In the

banking sector the BI system is used for the profitability analysis of the customers and also

increases the profitability of new products and services. It also seems to reduce the bank’s

credit losses and also improves customer support and service facilities and also helps

strengthen the loyalty of the customers (Olszak et al. 2006).

The present study will be helpful to explore comprehensive information about the

applications and implementation factors of the BI system in the banking sector. In addition,

the study will provide in-depth information about the benefits and challenges involved in the

implementation of this system in the banking sector. A rigorous comprehensive analysis and

evaluation of BI readiness is still required (Anjariny & Zeki, 2013). This was observed that

the BI system presented many benefits such as efficient decision making, large data handling,

provide quality services and assisting with the risk mitigation strategies. On the other hand,

the challenges of the system implementation involve the higher costs and time. It is required

to analyse these factors that can encourage or discourage the implementation of the system for

the employers of banks in Malaysia (Ahmad, 2015). Therefore, the present proposed study

will be helpful to analyse the critical factors that can play a role in the success of the

organisation. It was observed that many organisation including banks encountered challenges

related to fraud cases and privacy leakage of the customers that required the integration of the

innovative system to enhance the confidentiality of the customers and to reduce the concerns.

This will enhance the profitability by increasing the generated revenues for the banks along

8
with the increase of the confidentiality of the customers to enhance the privacy of their data

(Ikpefan & Akande, 2012).

This study will provide detailed information about the factors and innovations that can

enhance the profitability of the banks and how they can overcome the challenges by using an

innovative system such as BI technologies. In addition, the role of these strategies and their

effectiveness and applicability can be found out by using the findings of the proposed study.

The proposed research study will be significant in assessing and examining the key factors

that influence the banking sector of Malaysia to adopt the BI system. The study will be

significant with regards to the proposed outcomes in terms of exploring the applications of BI

systems in the banking sector and finding out the pros and cons related to the application of

this system.

1.6 The Organization of the study

This research is divided into different chapters, each chapter caters to a specific area

of the study contains detailed information which is relevant to the topic within it along with

authentic and proper references and citations. The first chapter consists of the background of

the topic with the aims and objectives of the research along with the research question. The

second chapter of the research contains the pre-existing data related to the topic from different

researches, articles, journals, and papers. It starts from an introduction and ends at the

conclusion; it also contains the theoretical framework of the topic. The third chapter is of the

methodology in which the detailed methods which are being used in the research are discussed.

The fourth chapter consists of the data analysis on the data which has been found from the

primary methods of the research. And the last chapter includes the overall summary of the

research, implications, limitation, direction for future research and conclusions.

9
 CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

Literature based study revealed that the present enterprises are required to fulfil the

increasing customer demands and should provide quality product services within a short time

period. Throughout the recent years in the banking sector the competition has increased and

to compete against the other competitors it is crucial to be updated about all the information

of the business for a better decision making (Taneja et al., 2015). The BI system is used for

the interpretation of a large volume of data and also provides long term stability for the

business to prosper (Qushem et al. 2017). The concept of the Business Intelligence system was

first explained in 1989 by Howard Denser who used a computerized support system to develop

the process of decision making (Bargshady et al., 2014). During the last decade a number of

organizations have implemented the BI system in order to achieve improvements and enhance

their decision making (El-Adaileh & Foster, 2019).

2.2 Underpinning Theory and Theoretical Framework

The survey of the literature gives the idea about the developments in the banking

sector in the recent years. The banking is going through a major phase of transformation due

to growing competition. The banking sectors are adapting the BI system to enhance their worth

and to obtain profitability according to Mishra et al. (2016). The BI system applications in the

Banking sector includes customer relationship management, performance management, asset

and liability management, risk management and compliance (Acheampong and Moyaid,

2016). Not only to the large companies but due to the availability of inexpensive and

generalized products BI is now also in the reach of smaller and medium size companies, and

with the help of well-designed infrastructure, it makes competitive advantage are avail to the

business organization (Nadeem & Jaffri, 2004). Going through the study, the greater high

failure rates, sub utilization and withdrawal of BI solutions, the requirements to approach the

10
issues that prefer good planning, implementation and holding of these types of solutions is

necessary. According to the researchers Hawking, P. & Sellitto, C. (2010) these are known to

be the key success factors. Solution adoption, complexities in implementation and business

purposes issues are more concentrated learning of key success factors for BI solutions (Yeoh

et al, 2008). The problem for an organization is to find out the factors that are more influenced

over the BI system (Sangar & Iahad, 2013). That is the issue because of this the key success

factor has turned out to be the useful concept to understand the BI project, and then it becomes

a pillar for people to understand the areas that can carry theory into practice (Arnott, 2008).

2.2.1 Business Intelligence

Business intelligence is an umbrella term for technologies, application and processes

related with collecting, storing, utilizing, disclosing, and analyzing data to aid decision making

(Gaardboe, Svarre 2018). The main objective of Business Intelligence is to facilitate managers

in decision-making process. (Tyson 1986) defines it as a Business Intelligence system focused

on the collection, processing, and presentation of data about customers, competitors,

technology, markets, products and environments. The significance of business intelligence

observed I the decision-making capacity along with the market competitor’s demand for the

business approach and help in the smooth growth in the market. Also, through the business

intelligence it is easy to study the ways that can help to increase the organization profit. In

addition to this, it also impacts in the analysis of the customer behavior by tracking the

performance of the organization and customer services the organization challenges can be

smoothly determined and solved. It is important to know the current market trends in order to

accomplish the goals. The implementation of optimized operations in business intelligence

system also help in driving the organization towards success.

Business Intelligence solutions are presently utilized mostly by large and medium-

sized companies. These businesses produce the amount of structured data from which acquire,

through various methods and analyses the useful information to support business process

management. The data is generated in the company of the most common operating systems

11
and are stored in a certain database structure, ready for processing. In current times Business

intelligence is used for strategic initiatives and provocation of innovation in the existing

business environment. The dynamic shift in the overall business culture has tilted the shift

towards the use of such applications as being necessities (Liang & Liu, 2018). Companies all

around the world have to sustain their competitive advantage and the use of applications like

artificial and business intelligence makes this more practical.

The process of data management is complex as it compromises the accuracy,

availability and accessibility of the data which are provided by the organization management

and IT teams. In result to which the market campaigns are observed improved along with the

optimize business operations and in progressive informed decision operations. On contrary the

data quality problems and worse business analytical applications leads to the deployment of

the data operations and eventually effect the efficacy rate of the business operations. Business

intelligence applications and technologies can assist companies to analyze changing trends in

market share; variation in customer behavior and spending patterns; customers’ preferences;

company capabilities; and market conditions. Business intelligence can be beneficial to

analysts and managers in determining which adaptions are most likely to respond to changing

trends (Khan, Quadri, 2012).

The complexity of Business Intelligence solutions is mainly based on the availability

of a variety of automated and analytical tools and functions that necessitate data processing.

The most common tools are: ETL, OLAP, Data Mining, and Reporting (Bourman, Dogen,

2009; Jenco, 2011; Novotny et all, 2005). The objective of these analytical tools is to increase

the professional quality of the organization data. It also helps in gaining the insights and

automation setting generate more dynamic report and data structures. Business intelligence

has two primary activities including getting data in and out of the organization. Data gathering

was also known as data warehousing and was considered one of the most difficult and vital

business functions. The integration of data gathered from various sources is now facilitated by

the use of business intelligence. The second activity required a greater amount of precautionary

attendance, as only the data demanded was supposed to leave the organization. (Ain. et al,

12
2019). The whole process of data extraction and data mining has been automated by the use

of BI applications, this leaves a sufficient amount of time for the management to focus on

more core activities.

BI is a domain of Decision Support System (DSS) an information system that can be

used to support complex decision making, and solving complex, semi-structured, or ill-

structured problems (Azevedo & Santos, 2009; Nematiet al., 2002; Shim, et al., 2002). The

goal of decision support system is to facilitate the information for the execution of the

manageable and structured decisions for which different databases and software systems can

be used. As, with the implementation the data can be mined through the external sources like

internet. The size of the database depends on the organization supporting the information.

Moreover, there are different methods that are used for the analytical observation and data

processing of the company like mathematical methods. The software can be designed

according to the desired outcome depending on the inputs and conditions (Martins, et al.,

2019).

2.2.2 Critical success factors of Business Intelligence

There are different theories used by the researcher associated with exploring the

determinants associated with the use of BI adoption in different organisations. There were

three theories in listed in the previous literature named as “Diffusion of innovation (DOI)”,

institutional theory and TOE framework. Hatta et al., (2015) presents and discusses both

theories, and also present relevant literature that related to technological innovation in the

paper. It was noticed that there were five common determinants that impacted the rate of

innovation adoption within different organisations. These determinants include relative

benefits, complexity, compatibility, observability and trialability (Boonsiritomachai et al.,

2014). These parameters or factors were positively associated with the rate of adoption of BI

systems in the organisations to bring innovation. On the other hand, the institutional theory

demonstrated about the factors such as customer pressure, requirements of suppliers and

preferences of trading partners played a significant role for the organisations to adopt the BI

13
technology system. Furthermore, the other leading factors explored by the institutional theory

include the policies of government bodies and to gain success with the competitors affect the

decisions of companies to use the applications of BI system. Another model or framework

named as the technology, organization and environment (TOE) framework was applied by the

organisations for the integration of the BI system. Tornatzky and Fleischer (1990) established

the Technology–Organization–Environment (TOE) framework, which this theoretical

conceptual framework has been frequently adopted by most researcher to analyze and examine

the implementation of various technologies (Stjepić A. M. et al., 2021). The theory explained

that organisations consider the different dimensions such as technological, environmental and

organisational factors for the implementation of innovative technologies (Hatta et al., 2015).

It was also stated that technological factors considered by the organisations for the integration

of BI systems constitute internal and external technologies that can be used as a tool along

with the processes significant for the organisation.

2.2.2.1 Technological factors

According to Owusu et al. (2017), technological factors have several characteristics

including, relative advantage, complexity, compatibility, and flexibility that enables to

influence the adoption of the BI system. Innovation is a key factor in improving analyticity of

logistics information therefore. If any organization adopt to change itself into BI system, it

helps them to be well-timed and precise as compared to the old one. Secondly, another factor

is flexible and appropriate technology that can be influential on adopting BI system. Flexible

IT infrastructure can contribute in term of incorporating and reconfiguring IT resources both

internally and externally in order to respond to opportunities and pressures of the market

(Chen, X., 2012). Lastly, the complexity of BI system technology, the key determinant which

impact organizations negatively. The use of the personalized services to the customers benefits

in the deliverance of more functionality and smooth business drive with the help of refined

data analysis methods. These methods significantly improve the businesses data and resultant

in greater customer support and organizational profit (Wang, et al., 2018). Since it is complex

14
in nature, it is difficult to adopt and learn hence, it can hinder people in the organization in

adopting to the new innovation (Owusu et al., 2017). Business intelligence can contribute a lot

to the existing technological framework of an organization. It encompasses various forms of

technology which is further processed with the help of artificial intelligence in the

implementation of business intelligence (Chen & Lin,2021). The CPM (corporate performance

measurement) framework has improved substantially after the induction of business

intelligence in organizations. The CPM had limited access to the overall informational

infrastructure previously which was further restricted due to the lack of integration of various

business applications, but after the implementation of business intelligence, the set of data is

transported in the balanced scorecard to identify KPIs (Key performance indicators) integrated

with the overall organizational goals. Similarly, there are other applications like ERP and

CRM which have augmented their level of performance after amalgamation with business

intelligence (Liang & Liu, 2018).

2.2.2.2 Organizational factors

One of the determinants in BI system execution process is the top management

support. It provides vision, support, and assurance to build a positive insight about innovation.

Hence, top managers provide the clear vision about the technology can provide them a positive

impact on the firm (Puklavec et al., 2018). Additionally, organization readiness could be

another factor which have positive impact on any organization. It helps in allocating necessary

resources for innovation adoption i.e., the availability of financial, technological, and other

necessary resources which could be significant in adopting BI system (Chaveesuk &

Horkondee 2015). Other factor that impacts positively could be the presence of a champion

who have all the knowledge and information about the new technology which can help in

profiting the organization in the market. Presence of a champion can bring positive changes in

the organization by providing awareness about the innovation, material resources and gaining

organizational support (Puklavec et al., 2018).

15
 Since the upper-level management acts as a key component in the decision-making

process, the significance of the executive management is undeniable. The top-level

management is not responsible for deployment and allocation of resources but is also the

mainstream of the overall organizational culture. Not to mention the presence of an efficient

senior management acts as a link between the outside world and the organization (Vugec.et al,

2020) The DSS (Decision support system) can only be amplified by the implementation of the

Business intelligence, to begin with a structured and comprehensive decision support system

must be in place. The main element of a DSS is the executives and board of directors who are

directly indulged in the whole picture (Fink,Yogev & Even,2017). In conclusion, an

organization cannot implement a business intelligence system successfully if it does not

possess a supporting senior management.

2.2.2.3 Environmental factors

Environment of the organization can impact both positively and negatively as it can

create both opportunities and threats. One of the major factors which positively influence BI

system implementation is competitive pressure of market which provides any organization a

chance to introduce innovation into the firm and compete with the opponent markets. By facing

the competitive pressure, organizations can compare their current approach in managing their

data storage and implement different new technologies to cope with that challenge (Rouhani

et al., 2018). Similarly, external source could be another factor which can be a positive

influence on the organizations by mining new knowledge and information from external

source, therefore, provide organizations great way to introduce innovation in the firm. Lastly,

the government support could be another determinant. Having a support by the government in

IT implementation can get financial bonuses in order to run the company (Chaveesuk &

Horkondee 2015). The environment is considered to be the source of all positive and

negative externalities outside the organization. Thus, despite the opportunities provided by the

environment, there are also various forms of threats that can be inflicted on an organization.

As mentioned above, business intelligence can intensify the positive externalities but can also

16
prevent the organization from the negative outcomes and threats posed by the environment,

especially for a bank. This includes the fraudulent information processing of transaction or

speculative business transactions, a breach of security or destruction by fire, or any physical

form of incidental damage (Tirpude, Karandikar, & Welekar, 2020). Though business

intelligence cannot prevent an organization from all aspects of disasters it can reduce the

magnitude of various threats. This includes the identification of mysterious or speculative

transactions by the whistle-blowers in place and an impenetrable firewall presence for

prevention from any information theft (Owusu, et al. 2017). The business intelligence

improvises the existing BCP (business continuity planning) in an organization to ensure data

is transmitted into an offshore location on a real-time basis and without being decoded in the

way. These are one of the few reasons which have led to BI awareness in today’s environment

and are becoming an essential part of the overall organizational infrastructure.

In addition, the environmental factors include the size structure of the industry,

competition with the other organisations and macroeconomic contexts were the factors that

affected the organisations to adopt the BI technology for the achievement of success. The

organisational factors comprised of the organization strategy, structure, process and culture

(Arefin et al., 2015).

2.2.3 Significance of Business Intelligence Systems (BIS)

When asked to prioritize technology investments, Chief Information Officers (CIOs)

ranked Business Intelligence at the top (Gartner, Stamford 2014), this shows the significance

of Business Intelligence systems in organizations. Business Intelligence was the biggest

organizational IT investment in 2015 and it had maintained this record since 2009 (Kappelman

et al 2015).

With respect to BI systems used by managerial level, Negash (2004 p. 179) suggested

“BI assists in strategic and operational decision making” and that “Business intelligence is

used by decision makers throughout the firm. At senior managerial levels, it is the input to

strategic and tactical decisions. At lower managerial levels, it helps individuals to do their day-

17
to-day job.” (p. 189). With strategic research approach the problems that are been faced by the

organization teams in sales and services can be overcome. Also, these approaches also help in

the product improvement and promote the potential relationship with the vendors and the

customers (Božič and Dimovski, 2019).

The ever-growing importance of BI systems can be asserted by research done by

Thomson (2004) classifying the major advantages of BI based on survey research. He

concluded that BI sanctions faster and more accurate reporting (81%), enhanced decision-

making (78%), refined customer service (56%) and increased revenue (49%). Data mining is

one of the most state-of-the-art data analytical techniques used in BI systems; numerous Data

Mining applications have been carried out in the telecommunication industry. The three

fundamental applications are identified are: Marketing & Customer relationship Management

(CRM), Fraud management and Network optimization (Pareek 2007). CRM software includes

all the customers services that are being cater. The increment in the customer sales and revenue

is made through the customer calls, emails, and meeting analysis. One of the common software

that is used for the customer relationship management is cloud-based system that track the

sheer amount of customer data. There are certain critical success factors that are used in the

management control it involves executive information systems (EIS) as it eases in the

management progress of the organization. The management of the information can be

accomplished by the appropriate EIS design which is dependent on two main ideas that are the

identification of the data gathered and the availability of the data to the management resources.

Thus, empowering in the organization growth (Brar, 2018)

The acquisition and implementation of a Business Intelligence tool are also quite

advantageous for the health organization. Healthcare organization usually store how their

processes should be performed, specifically those that represent complex routine jobs

involving multiple people and organizational units. These intelligence systems are facilitators

of the management, storage, analysis, and visualization including ensuring access to large

amounts of data in the context of BI (Brandao et al, 2016).

18
 When we attain the significance of Business intelligence in terms of the banking sector

there is a whole different range of elements to be considered. Since the banking sector poses

as one of the basic and most vital corporate sectors of economic development, the factors

initiating its smooth conduct of operations become even more significant. Several studies were

conducted presenting the Ghana Banking sector as one of the models of evaluating the success

of BI implementation in the banking sector, various advantages prompt positive feedbacks on

both organizational and individual levels (Vallurupalli & Bose, 2018). Recent times require

organizations to be customer-oriented rather than divert all their resources to attain profit

maximization. The implementation of Business Intelligence has resulted in customer

satisfaction and delight.

The customers tend to find connectivity easier with their respective banks and can

easily access all the information required from a single platform. Different operational

segments coincide and provide an integrated system for the consumer to perform several

unrelated activities through their applications (Alzoubi. et al.2020.The applications

implemented through business intelligence have made the banking system user-friendly and

easy to comprehend. There is no restriction to literacy or any age parameter for the basic

premise of using banking applications.

2.2.4 Overview of banking sector of Malaysia

The Malaysian banking structure has better alliance and evolutional outputs. The rise

in the evolution resulted from the merger approach of local banking institutions into anchor

banks that further proceeded to the competition in the market which are regulated (Sufian,

Kamarudin and Nassir, 2017). The Malaysian banking sector consists of 27 commercial banks

of which 19 are licensed foreign banks, 11 investment banks, 18 Islamic banks (Bank Negara

Malaysia, 2020). Furthermore, according to Association of Development Finance Institutions

Malaysia (ADFIM) (2021), there are also 17 development financial institutions (DFIs) in

Malaysia as of September 2020, including Sabah Credit Corporation Berhad, Sabah

Development Bank Berhad, Bank Simpanan Nasional, Malaysian Industrial Development

19
Finance (MIDF), Perbadanan Usahawan Nasional (PUNB) and Small Medium Enterprise

Development Bank Malaysia Berhad (SME Bank). The DFIs were initiated by the government

under The Development Financial Institutions Act 2002 to provide financial support to specific

priority sectors of the economy to undertake required socio-economic obligation, and they are

mostly sponsored by the government. As Malaysia’s banking sector is large and diversified.

Banking intermediaries, insurance companies and capital market firms have assets of close to

400 percent of GDP as of the last quarter of 2011 (as shown in Figure 1). Banking

intermediaries account for almost half of the financial system. The economic growth of

Malaysia lowered in 2019 for which different policy approach was being catered and in result

to which the increment in the profit was noticed (World Bank, 2013).

Figure 2.1: Structure of the Financial Sector (by asset share), 2011 (Bank Negara

Malaysia, 2011)

2.3 Empirical Research

According to Mungree, D. et al. (2013) in the article “A framework for understanding

the critical success factors of enterprise business intelligence implementation” is discussing

the about the BI system implementation and critical success factors (CSF). This article

analyses the success factors and their contextual issues that can help any firm or organization

to attain an effective BI system implementation. The authors use the mixed approach for the

methodology to figure out the results. The finding shows that the appropriate and usefulness

of the various factors vary according to the phase of implementation.

20
 Whitcomb, V. J. (2016) conducted research on the gap in knowledge concerning

critical success factors (CSFs) for learning management systems (LMSs) implementation.

Learning management systems (LMSs) are considered to be the technical basis for online

learning programs that gives advantages to the learners in various areas. In this research, the

study is done using phenomenological approach and the reason for this study is to find out the

critical success factors (CSFs) by examining the lived experiences of 8 association executives

who successfully managed LMS implementation through email communication. There is a

possibility in this research to have a positive social impact that is due to the reduction of the

risk of learning management systems (LMSs) that will make possible for the leaders in the

organization to increase the learning opportunities to more individuals, which will be the

source of prosperity for the membership association and the industries.

The business accomplishment of small and medium-sized enterprises (SMEs) relies

on the adoption of many technological innovations, but somehow different internal and

external risk will influence the adoption. The authors Stjepić A. M. et al., (2021) reported in

his article about the risk that impact business intelligence system (BIS) adoption in small and

medium-sized enterprises (SMEs) by using the technology, organization and environment

(TOE) framework. The author collected the data by a questionnaire survey using a sample of

100 Croatian SMEs, and develops the logistic regression model. To test the model, the author

used the survey research approach. The results show that if the TOE framework is applicable

to examine BIS adoption in SMEs. From the outcomes, it is clear that the internal risks of

SMEs are related to the organizational dimension and the external risks to the environmental

dimension. The research does not declare the particular impact of technological risks that

surrounds the characteristics of the technological innovation related to the technological

dimension.

The business intelligence (BI) is a new direction in a public sector organization that

needs to inspect the critical success factors (CSFs). Nonetheless there is not much enough

evidence that provides the better knowledge of the CSFs for the BI implementation in public

sector organizations. The author Magaireh, A. I. et al. (2019) conducted a research to identify

21
the critical success factors (CSFs) for business intelligence system (BIS) in the background of

public sector organizations. The research is done by using the mixed method approach, survey

research method and qualitative interview by using the Jordanian public sector organization

case. The findings of this research shows that the top management support, strategic planning,

clear vision, user participation, team skills, organizational structure, development technology

and user access are very demanding factors of BI implementation success in the public sector

organizations, the findings of the study can also tell the organization that to focus on those

CSFs of BI systems which provide them a good brief to implement, plan and manage the BI

projects and to tackle the issues and concerns related to BI implementation.

The utilisation of the BI system was found helpful for the firms or companies with

regards to making better decisions by comparing the previous and present data of the

companies. The study showed that the tools of the BI system can be applied for better

performance and selecting the appropriate benchmarks to enhance the productivity of the

employees and make the system run more smoothly (Muhammad et al., 2014). It was noticed

that the techniques of the BI system had its applications for the financial sector in terms of risk

management and provides more profits to the clients. In the banking sector, the application of

BI techniques attracts a large number of customers that generate more revenues and

profitability for the banks. In addition, it was found that the quality services of the banks for

their customers and other stakeholders can be increased due to meeting the compliance

requirements

The dashboard management was also possible for the banks by integrating the

applications of the BI system. In one study, it was reported that the use of Business intelligence

technologies can assist and enable the organisations in gaining insight into new markets,

assessing the demand for and acceptability of products and services for various market

segments, and determining the effectiveness of marketing initiatives (Chugh & Ghandi, 2013).

According to Muhammad et al., (2014), BI techniques was helpful for the banking employers,

leaders and other employees to improve and streamline their operational efficiencies, improve

the sales and marketing tactical strategies and also equip the organization with risk

22
management plan by the ability of BI system to perform organization data analysis.

Additionally, the services can enhance the customer service programs that can provide the

solutions to deal with the customers efficiently with more outputs. The risks can be mitigated

by using the BI system as it was found possible to use more risk management and development

processes. Handzic, M. et al. (2014) in the study “Improving Customer Relationship

Management Through Business Intelligence” investigates business intelligence (BI) function

in customer relationship management (CRM). The data was acquired using a quantitative

method from 165 participants from 73 various firms across Eastern Europe, including both the

public and commercial sectors. The study confirms and validates the importance of BI in CRM

by demonstrating its impact on the creation of organisational business and customer strategy.

In addition, the performance of the business and the banking operations can be

managed by using the data analytics tool and software. Compliance and liability management

can be possible by using these techniques. For instance, the BI system was found helpful for

handling the issues such as customer complaints, transaction analysis, analysis of the

profitability of the customers, analysis of the markets, risk analysis of the risk rates and

analysis of the suspicious activities (Rao & Kumar, 2011). The study further documented that

the BI system can be applied as it provides information about fraud detection in the

organisation and predicting about the use of new products or services by the customers for

checking the profitability. Radmehr & Bazmara (2017) on the research “A Survey on Business

Intelligence Solutions in Banking Industry and Big Data Applications” state that banking

industry employs business intelligence solution to provide insight namely on marketing, risk

management, fraud detection, portfolio management, customer retention, success prediction,

security exchanges etc.

Sujitparapitaya et. al (2012) aimed to determine the efficacy of ten variables in the

organisational, technological and environmental factors and assessed their influence related to

the use of the BI system in the private and public sector of the USA education system. The

study collected the data from the 243 study participants by using the survey method. The

findings showed that the structure and size of the organisation along with the legitimacy of the

23
organisation and support of the stakeholders were amongst the significant determinants to

adopt the BI technologies. The BI system was found effective in the study to gain competitive

advantages and benefits for the organisations. In the other study, the factors were analysed that

raised the adoption of the applications of BI for the organisations. Malladi (2013) aimed to

employ the framework of “Technology-organization-environment (TOE)”. There was the

collection of the data from 358 organisations located in North America by using the survey

method. The findings indicated that the organisations utilised these BI techniques due to the

perceived advantages, sophistication of technologies in terms of infrastructure and size of the

organisation. The firms that required more knowledge with modifications enhance the

requirement to integrate the BI technologies for the increase of outcomes and productivity.

Rouhani, S. et al (2018) carried out empirical study on Business Intelligence (BI)

systems adoption model and aimed to examines of the various aspects affecting business

intelligence adoption in the context of Iranian banking and financial industry. Nine relevant

hypotheses relationship developed for the study that consists four hypotheses for technological

factors, three hypotheses for organization factors and two hypotheses for environmental

factors. The hypotheses validate and analyse using Structural Equation Modelling (SEM). The

findings showed in terms of analysis of hypotheses of perceived costs factor, there is no

significant differences found between Business Intelligence System (BIS) non adopters and

adopters. The study suggested the remained eight hypotheses that construct by the factors of

perceived tangible benefits, perceived intangible benefits, complexity, business size,

organizational readiness, strategy, industry competition and competitor’s absorptive capacity

effect on BIS adoption is in banking and financial services industry.

The study carried out by Owusu et al (2017) aimed to analyse the factors that affect

the organisation in Malaysia to adopt the BI system. The study was carried out to assess the

applications of the BI system in the private universities of Malaysia. The research used the

Technology-Organization-Environment (TOE) framework for the analysis of BI applications

in the organisation. The data was gathered by using the survey method and the research

instrument was based on the questionnaire. There were 120 study participants recruited

24
comprised of managers and the employees associated with academics in Malaysia. The

collected data was analysed through the method of Structural Equation Modelling (SEM). It

was observed from the findings that the factors such as competitive pressure, IT infrastructure,

management support, absorptive capacity, complexities and vendor selection were the factors

that affected the adoption of BI technology in the University in Malaysia.

On the other hand, the study “Sustainability of Commercial Banks Supported by

Business Intelligence System” carried out by Tunowski, R. (2020) is aimed to discover

whether business intelligence (BI) systems contribute to commercial banks' sustainability by

effecting their financial state. The study employs the comparative method which is compared

bank’s financial condition in three different aspects whereby: during pre and post BIS

implementation, compare and gauge comparison average indicator towards the industry and

also comparison on overall economic situation. Among thirteen (13) Polish commercial bank

that listed in Warsaw Stock Exchange, only six prominent commercial banks in Poland

involved in this study. The study confirmed that there is positive correlation between the

adoption of Business Intelligence systems and financial condition. In other study, Preko, M.

& Kester, Q. A. (2015) conducted study to examines the impact of implementation and

adoption of BI systems in Ghanaian Banking industry. The study utilizes Technology

Acceptance Model (TAM) and qualitatively analyze twenty-two (22) banks. The study

confirmed that overall impact of the deployment of BI systems and technology was significant,

indicating that the Ghanaian banking industry has truly embraced business intelligence.

The study carried out by Marefati and Hashmi (2012) aimed to analyse the efficacy of

the BI system in the banking industry. The use of BI system comprised of tools, processes and

technologies that help in the transformation of data to the required information that enhances

the decision making in the organisation. The study explained the principles of BI and its

application in the banking industry. It was observed that BI solutions can enhance the

competitiveness of firms and organisations. The solutions provided by the BI system can be

employed to gain the maximum benefits for being a leader and presented a better

25
understanding of customer requirements. In addition, better communication can be included

in the system that will enhance the employees-customer relationships.

In another research study did by Sundjaja (2013) aimed to study the implementation

of the BI system in the banking, education and retail industry. It was observed that the different

organisations used to manage the large data sets that cannot be handled manually. It was nearly

impossible to handle the large data sets of the customers by the individuals working in different

sectors. The article discussed the applications of the BI system and its implications. It was

found that the BI system can be used for data sourcing, data analysis, data management and

for other’s benefits. The data obtained from the study showed that integration of BI system in

banking helped in obtaining, managing and analysis of the large data sets of consumers.

Following table are summary recent empirical study on the area of the studies.

Table 2.1: Summary of Recent Empirical Study on the Area

26
27
28
29
 The BI techniques were found beneficial in providing the customers the more

personnel services that enhanced the quality services provided by the bank to its customers.

The previous studies also explored the use of BI techniques in the banking industry. it was

observed that the banking operations can be improved due to enhanced reporting, data mining,

built-up performance management of the employees and benchmarking. In addition, the

predictive analysis can be done by using the techniques of the BI system in the banking

industry. Overall, the BI techniques helped in enhancing the operational efficiency of the

banks, enhanced the quality of delivered products and services, enhanced marketing and

increased the satisfaction of the customers. The study also demonstrated the new strategies of

the investment that can be provided to enhance the business and its productivity. There is a

30
higher cost involved in the implementation of BI techniques in the banking industry (Owusu

et al., 2017). In addition, the individuals working in the banks must have the skills to use the

technology of the BI system. In one study it was observed that risk reduction was possible by

integrating the techniques of the BI system in the banks, these advanced applications were

enhanced to minimize the risk by tracking the withdrawals and transaction activities in the

banking system (Rao & Kumar, 2011).

2.4 Conceptual Model Framework

The conceptual model presents the model that can present the graphical relationship

between the variables. The model for the following study is provided as under:

Figure 2.2: Theoretical Framework

There are different critical success factors within the companies that contribute

towards business intelligence and supports in creating the positive environment for the

31
implementation of business intelligence. Ahmad et al., (2020) conducted systematic literature

review (SLR) on 84 published studies that release from 2011-2020 to explore the related

significant determinants impact on Business Intelligence Systems adoption and acceptance.

The findings indicated that in context of BI systems adoption, most researchers are utilized

Diffusion-of-Innovation theory (DOI) follows by Technology-Organization-Environment

(TOE) framework and Institutional theory. TOE's framework not only entail technological,

but it also encompasses on organisational, and environmental aspects as well (Ismail & Ali,

2013).

Considering TOE as the foundation to determine the critical success factors, and in

context of technological aspect, Stjepić A. M. et al., (2021) stated that perception of the

comparative advantage and perception of the business intelligence system’s complexity are

two most critical factor that have significant impact that influence on the business intelligence

system implementation and readiness. In another study, Mungree, D. et al. (2013) stated that

flexible and appropriate technological framework is one of determinants that influence the BIS

adoption. Furthermore, on another study, Chen, X., (2012) has empirically test the relationship

of IT infrastructure flexibility and on the usage of Business Intelligence Systems, and the study

concluded that IT infrastructure has positive impact on the BIS use.

Cidrin and Adamala (2011) suggest that a high level of top management support is

correlated to BI project success. Similarly, according to Boyton et al. (2015) the most critical

aspect in a successful BI implementation is acquiring management support. Petter et al., (2013)

suggest that management support is the extent level of commitment from the management to

promote and to sponsor as well as their motivation and commitment to provide the resource

allocation adequately toward the implementation.

Puklavec et al. (2014) defined that organization readiness defined as adequate

resources or capital that possess by the organization includes human, financial, technological,

expertise, talents and so on. Similarly, under organizational factors, Puklavec et al., (2017)

describes that organization readiness is the organization's ability to allocate the necessary

resources for innovation adoption. Boonsiritomachai et al., (2016) stated that when evaluating

32
the BI system implementation process within the firm, the availability of organisational

resources is one of the critical determinants. Acheampong and Moyaid, (2016) discovered that

organization readiness has determined to has a positive significant impact on the

implementation of BI system.

In environmental context of TOE framework, competitive structure and pressure of

market characteristics is considered one of it (Stjepić A. M. et al., 2021). This depicted that

the intensity level of the competitiveness that exist on the market. Furthermore,

Boonsiritomachai et al., (2016) suggested that competitive pressure has positive impact on the

adoption of Business Intelligence System. According to Rouhani, S. et al (2018),

environmental aspect is attributes by the industry’s competition and as well as the competitors’

absorptive capacity. Therefore, it is proposed that Competitive pressure (or industry and

competitors’ absorptive capacity) is one of independent variable that potentially has impact on

the Business intelligence System’s implementation and readiness.

2.5 Research Hypothesis

The hypothesis of this research is provided as under;

 H1: Perception of the comparative advantage of Business Intelligence System

(BIS) has a positive significant impact on Business intelligence

implementation readiness.

 H2: Perception of Business Intelligence System’s (BIS) complexity has a

negative significant impact on Business intelligence implementation

readiness.

 H3: Flexible and appropriate technological infrastructure framework has a

positive significant impact on Business intelligence implementation

readiness.

 H4: Management support has a positive significant impact on Business

intelligence implementation readiness.

33
  H5: Organizational readiness has a positive significant impact on Business

intelligence implementation readiness.

 H6: The more Competitive pressure has a positive significant impact on

Business intelligence implementation readiness.

2.6 Summary of Chapter 2

Business intelligence systems have become an integral part for a business due to the

rapidly growing customer demand and competition. These systems can be a considerable boost

to an organizations productivity and customer relations. However, the successful

implementation can depend on various different factors.

Technological factors are one category of critical success factors that affect BI

implementation. It really impacts the implementation if the BI in question is innovative.

Although being fast, reliable, flexible and relative to an organization is great, however, being

overly complex will have negative implications. Organizational factors also play a major role

in implementation. Good management support, good leading vision as well as a good amount

of financial, human and technical resources does contribute to a more successful

implementation. Environmental factors such as competition can pressure companies into

implementing new tools to better function. Vendor support is also an important factor. As well

as governmental support.

The banking sector has undergone major change in the last few years, which has only increased

the demand for a successful BI system. The Technology-Organization-Environment

Framework (TOE) has been recognized as a framework for BI implementation that is able to

incorporate different domains.

The Empirical research for the identification of already known CSFs resulted in

highlighting various Environmental, Technological and Organizational CSFs, however,

importance of CSFs differed from depending on the target of research.

Finally, one the basis of the empirical and literary evidence, a handful of hypotheses

were found.

34
 CHAPTER 3

RESEARCH METHODOLOGY

3.1 Introduction

In this chapter, the researcher will explain that how the research will be conducted and

what type of data collection method and analysis technique will be used in order to test the

formulated hypothesis of the study. This chapter will specifically provide description

regarding the research design, study population and sampling procedures, data collection

method, Operationalization and measurement in which included independent variables,

mediating variables, dependent variable and in data analysis technique included descriptive

analysis technique and inferential analysis technique, and summary of the entire chapter.

3.2 Research Design

Yilmaz (2013) stated that the quantitative research design is based on the collection

and interpretation of numerical or statistical data in order to make research findings

generalized. The use of quantitative research design will allow researcher to collect data from

large sample size and interpret the responses of the targeted population using consistent and

reliable quantitative data or statistical analysis technique. In this research, the application of

data analysis technique will allow researcher to explore the success factors of business

intelligence implementation readiness on the basis of responses of the population and analysis

of their responses using statistical analysis. Furthermore, there is another way to conduct

research According to Creswell (2009) in a mixed-method research design employs both the

combination of quantitative and qualitative data used to conduct research. For example, the

researcher evaluates the skills and risk perceptions of the people by collecting data about

genetically customized food by conduct a mixed study of open-ended (qualitative) and closed-

ended (quantitative) questions that both data are integrated and analysed. Ideally, the mixed

method of quantitative and qualitative is best research design to adopt on this present study.

To further understand in-depth knowledge regarding the respective area of study, the study is

35
to conduct a quantitative method and to follow up with qualitative face to face interview with

organization’s Subject Matter Expert (SME) and as well with targeted respondent for each

individual factor and its TOE dimensions. But, due to time constraint of the study and as well

as the strict organization policy due to Covid-19 pandemic that limit face to face interview,

therefore in this research study, the researcher will adopt quantitative research design in order

to explore the success factors that are required for the readiness of business intelligence

implementation within the context of banking sector in Malaysia.

Figure 3.1: Detailed of Research Design

3.3 Study Population and Sampling Procedures

In this research study, the population that will be targeted or included are the bank

employees includes non-executives, executives and managers employed in the banking sector

of Malaysia. The population for this study is comprised of banking sector employees across

Malaysia. According to 1Q 2018 Labour Market Statistics of the Financial Services Sector

released by Bank Negara Malaysia (2018), as at end of the first quarter of 2018, there were

164,216 employed people in the financial services industry, which included banking

institutions, development financial institutions, and insurance companies/Takaful operators

36
compared to 165,318 peoples employed on ending same quarter in 2017. With a population

workforce of more than 150 thousand people, it's vital to apply a statistical model to calculate

the sample size.

There are numerous methods for calculating sample size. For small populations, these

include using a census, imitating a sample size from similar studies, using published tables,

and using formulas to calculate a sample size (Israel, 1992). Furthermore, Israel explains that

the difficulty of establishing a reliable estimate of population variation has boosted the

popularity of proportional sample sizes. Taro Yamane's (1967) formula, which is a simplified

proportion formula, has gained prominence among researchers for these considerations

(Adam, 2020). Taro Yamane's (1967) formula, which is a simplified proportion formula, has

gained prominence among researchers for these considerations (Adam, 2020). Therefore, the

study is adopting Taro Yamane’s formula sampling population where the confidence level is

at 95% and P=0.5, whereby higher level of acceptable sampling margin of error (0.08) is

considered on the study due to time constraints of investigation and considering response rate

of respondent to perform additional task during their busy schedule.

Therefore:

𝑁
𝑛=
1 + 𝑁(ⅇ)2

Whereby,

n = sample size

N = population size

e = acceptable sampling margin of error (0.08)

By resolving the formula, thus

164216
n=
1 + 164216 (0.08)2

n = 156.101

Therefore, the study designed to collect target sample of 156 employees of banking

personnel based on Taro Yamane’s formula. With the determined sample size of 156

37
respondents of bank employees from which survey questionnaire (with 5-point Likert scale

measurement) will be filled out via electronic mail (email) or click on a hyperlink sharing. In

order to select sample size of the study, the researcher will use convenience sampling technique

in which the research collect the data from available pool and it is very economical. So, in this

convenience sampling technique allow researcher to include those bank employees in the study

that can easily or conveniently be approached (Etikan, et al., 2016). There are some advantages

used of convenience sampling in which include data can collect easily, less investment needs

to generate samples, easy to do research, less cost needed, sample always available and less

rules which needs to follow. For the quick analyze the convenience sampling some easiest way

which can be adopted for suppose, researcher can take multiple samples, can repeat the survey

and can try cross-validation.

3.4 Research Philosophy

Research Methodology includes the research philosophy that deals with the

sources and the development of the knowledge extracted. Research philosophy refers

to how the data is collected, analysed and then evaluated for the study. Mostly, the

research philosophy may include pragmatism, positivism, realism or interpretivism

(Bajpai, 2011)

3.5 Research Approach

The research approach in methodology includes two approaches that are

inductive and deductive approach. The inductive approach focuses on the systematic

ways to analyze qualitative data where there is analysis on the objectives provided.

The purpose of using the inductive approach is to compact the raw data into a summary

and to evaluate the objectives provided. It provides a systematic approach to find the

validity and reliability of the study (Thomas, 2006). Generally, the deductive approach

comes out with a hypothesis that mainly focuses on the cause and effect of the study.

Furthermore, deductive approaches are usually conducted with a quantitative

38
approach whereas, the inductive approach emphasises the work of the previous research from

a different perspective that is the qualitative research (Gabriel, 2013). However, the researcher

used deductive approach in this research.

3.6 Types of Investigation

There are three main ways through which the data can be investigated as stated by

Yin, R. (1994) that includes exploratory, explanatory, and descriptive. First is exploratory

research, which is applied when the problem of the research is not defined. Second is

explanatory research, it is applicable when there is no need for decision making, however, they

are used for the details of the research and the cause and effect of the research is used. The last

is the descriptive research, it includes the quantitative approach where there are surveys and

questionnaire conducted from a random sample. The nature of the research is explanatory

research.

3.7 Data Collection Method

According Sachdeva (2013), two methods are used in data collection. It includes

primary and secondary data. Primary data is collected by the researcher that are taken sources

mainly through the interviews, surveys, experiments, etc. Primary data are collected from

those sources. The methods of primary data collection include observation, interviews,

questionnaires and surveys. Similarly, secondary data is collected is extracted through the

previous researchers (literature review), and journal articles. The methods of secondary data

include statistical reports, articles, academic journals, and researches etc. Primary data is

applied in the current research. In this study, the researcher can adopt either primary or

secondary data collection method in order to evaluate the success factors contributing to the

readiness of business intelligence implementation in the banking sector of Malaysia. However,

as per the nature of the study, the researcher intends to adopt primary data collection method

in order to collect primary data to address the formulated research hypothesis. Roopa and Rani

(2012) stated that primary data collection method refers to the collection of data from primary

39
sources such as surveys, interviews, field observations, etc. In this study, the researcher will

use survey questionnaire in order to collect primary data from participant of the study. The use

of survey questionnaire will employ 5-point Likert scale will allow researcher to collect large

amount of data regarding factors associated with the successful business intelligence

implementation readiness from large set of population with relatively quick and efficient way.

3.8 Operationalisation and Measurement

The survey questionnaire comprises three (3) sections in which Section A is cater

demographic survey that designs to evaluate demographic data such as age, gender, job group

position in the bank, Section B that design to evaluate six (6) independent variables and follow

by Section C that design to evaluate the one (1) dependent variables of the study. The

measurement of Section A is nominal, and both Section B and C s will be measures as ordinal

using Likert-scale. The unit of analysis in term of population to be studied on the research is

individuals.

3.8.1 Independent Variables

Six (6) success factors or determinants in TOE framework have been identified as

independent variables for this study which are comprises three independent variables of

technological dimensions, two independent variables of organizational dimensions and one

independent variable of environmental dimension. Therefore, the independent variables for

this study are perception of the comparative advantage of business intelligence system (BIS),

perception of business intelligence system’s (BIS) complexity, flexible and appropriate

technological infrastructure framework, management support, organizational readiness, and

competitive pressure. All of the variables are likely to influence on the dependent variables

of the study. All of the defined independent variables will be measures on the ordinal based

on Likert-scale questionnaire survey.

Operationalisation and measurement for defined independent variables for present

study are as per following table:

40
 Table 3.1: Independent Variable Operationalisation Measurement

Dimension Constructs Item Key Sources

Technological T01: Perception of By adopting BIS, I might (Stjepić A. M.
the comparative protect organization from et al., 2021),
advantage of unnecessary costly (Rouhani, S. et
business expenses and save time. al., 2018)
intelligence system BIS is much more cost
(BIS) effective than other
decision support systems
(software).
On my perception, the
use of BIS help to
facilitate more effective
decision-making.
On my perception, BIS
facilitates better &
quicker execution and
decision-making.
On my perception, BIS
simplifies organization
tasks execution.
On my perception, the
adoption of BIS allows
for improved business
control.
T02: Perception of On my perception, the (Stjepić A. M.
business process of getting et al., 2021),
intelligence conversant BIS is time- (Rouhani, S. et
system’s (BIS) consuming, difficult to al., 2018}
complexity comprehend and
complex.
On my perception, the
process of introducing
the BIS is intricate and
complex.
Using BIS is complex
and demanding for users.
It is challenging to learn
how to use BIS.
Resistance to the use of
BIS is a result due to
complexity of working
with BIS.
T03: Flexible and (Chen, X.,
appropriate My organization has a 2012)
technological high degree of

41
 infrastructure information systems
framework inter-connectivity.

Information systems in
my organization are
sufficiently flexible to
accommodate electronic
connections to external
parties.
Our organization
information systems
enable remote users with
seamless accessibility to
centralised data.
Data is captured and
made accessible and
available to everyone in
my organization in real
time using information
systems
Software applications can
be easily transacted and
used across multiple
information systems
platforms in my
organization.
Our information systems
user interfaces deliver a
consistent and transparent
access across all
platforms and
applications.
External users can access
my organization's
information systems
through a variety of
interfaces or access
points gateway (i.e., web
access).
To integrate critical
enterprise applications,
my organisation makes
extensive use of
information systems
middleware (ability to
connect different
information systems
platforms).
Organizational O01: Management Top management provide (Stjepić A. M.
support supports the et al., 2021),
implementation and (Rouhani, S. et
adoption of the BIS. al., 2018)

42
 Top management willing
to allocate sufficient
resources for
implementation and
adoption of the BIS.
Top management actively
participates in
establishing the vision
and shaping the strategy
of BIS adoption.
Top management is
willing to accept the
possible risks the risks
associated with BIS
adoption and utilisation.
There is a person at the
management level who
strongly advocates and
adamant on the
implementation of the
BIS (warns the
importance of
implementing the
system).
There is a person at the
management level who
shows great enthusiasm
in initiating the BIS
adoption (motivates to
adopt the system).
There are one or more
people at the
management level who
continuously
emphasizing the benefits
of BIS.
O02: Managers and employees (Stjepić A. M.
Organizational know how to use BIS for et al., 2021),
readiness business support. (Rouhani, S. et
al., 2018)
Managers and employees
comprehend and
understand well how to
use BIS in business.
We have adequate
training and guiding
procedure to use BIS in
business.
We have enough
technical, managerial,
and other necessary skills
required to adopt the BIS.

43
 We have adequate
financial, technological,
and other resources
required to adopt the BIS.
Environmental E01: Competitive We will lose our (Stjepić A. M.
pressure (industry customers, if we do not et al., 2021),
and competitors’ adopt BI (due (Rouhani, S. et
absorptive competition degree on al., 2018)
capacity) business environment)
We will need to adopt BI
because of our business
strategic necessity.
Our organization had to
start using BIS to
maintain its competitive
advantage in the market.
Our competitors have
made significant
investments in acquiring
new knowledge.
Our competitors can
quickly discover and
swiftly obtain the
information they require.
Our competitors make a
serious effort to acquire
new knowledge as soon
as it becomes available.
Our competitors
constantly try to increase
the number of
information sources they
have.
Our competitors can
discover and learn new
things effortlessly.
Our competitors can
easily interpret the
information they acquire.
Our competitors are good
at connecting new and
existing knowledge.
Our competitors are good
at integrating information
from different sources to
their advantage.
Our competitors’ existing
practices make it possible
to use new and current
capabilities.

44
 Our competitors are good
at using new knowledge
in their operations

The business information is influencing the customer’s preferences as they are getting

the easy way to access their accounts through the latest technology of innovations such as,

mobile and internet banking. The dependent and independent variables which are selected for

the conduction of the research defines the capability of the banking sectors to grab the

opportunity and make their operations more effective and less complex. The artificial

intelligence (AI) technology helps the businesses to grow with a pace towards the success and

sustainable expansion, the AI helped in several industries such as transportation and

manufacturing, and it is now adopted and implicated into the banking sector, which means the

financial sector of the countries such as private and public banks will no longer be operated

on the manual basis, and most of the operations would be automated.

The requirement of automation and BI is not only at the end of consumer’s satisfaction

purpose, but it could also be implemented in the management support and other relevant

supporting function. In some conditions the management are relieved to rely on the automation

as they are provided enough authority to make the small decisions on their own, which helps

the management to focus into more important matters or business operations. The banking

sector in Malaysia is quite developed as compared to the other developing countries, and the

independent variables which are selected in this research are perfectly fitted into the banking

sector of Malaysia as it was identified in the study.

There were some other independent variables which were sensibly fitting into the

research domain, like customer satisfaction, but to keep the research relevant according to the

topic, the necessary variables were selected. Each of the dependent and independent variable

are categorized in such a way that the research objectives and the aim of the research could be

achieved.

45
3.8.2 Mediating Variables

The mediating variable defines the relationship among the variables or between two

variables and the effect of one on other, in this way the researchers can identify the role of

each variable by the mediating variable. A mediating variable is a type of variable which is

used to link the independent to the dependent variables, and the existence of this mediating

variable explains the relationship among the other variables which are used in research. A

mediating variable is also called a mediator variable. The role of mediating variable in this is

to make the consequences predictable as in the researchers are to make the decisions and

conclusions on the basis of the results and findings. Moreover, the mediating variable helps

the researchers in determining the effect of one variable on the other. Therefore, in this study

no mediating variable is include.

3.8.3 Dependent Variables

The dependent variables of the study include business intelligence implementation

readiness as it is likely to be influenced by the success factors that are independent variables

of the study. There are many suitable dependent variables that can assist researchers with

improving development as a marvel. As an example, the entrepreneur may fittingly

contemplate the connection between: growth exercises and the likelihood of real business

establishment, past pioneering experience and trust in current beginning up adventure or

enterprising goals and later changes to a proposed way or plan. With such countless pertinent

dependent variable and different theoretical systems for anticipating and clarifying them,

issues related with heterogeneity are unavoidable. Furthermore, rise can happen, and in this

manner impact different variables, at various levels. The dependent variables which were

selected for research such as, business intelligence, helps the researchers to know the effect of

the independent variable on the subject.

As the domain of the research is the banking system, there were numerous dependent

variables which might have been added to the proposal and the research, but there was a risk

of the research to go outside the domain of the research and keep it relevant to the topic, the

46
dependent variables were selected carefully. Therefore, in this study, the dependent variable

is identified as business intelligence implementation readiness and measures on the ordinal

based on Likert-scale questionnaire survey. Operationalisation and measurement for defined

independent variables for present study are as per following table:

Table 3.2: Dependent Variable Operationalisation Measurement

Constructs Item Key Sources

IR: BIS I will continue to use (Stjepić A. M. et al.,
Implementation software and BIS (provided 2021), (Rouhani, S.
Readiness by organization) as my et al., 2018), (Chen,
priority when dealing with X., 2012)
work task
I believe that System
software help me to support
and simplifies/ease my daily
work task
Technically, I believe that
our company possess
technological capability to
implement BIS and related
software system
I believe that management
are ready supports the
implementation BIS for the
benefits of the organization
I believe that we are ready to
support implementation of
any innovation software and
BIS that introduce by
organization
I believe that with
implementation of BIS will
ensure the organization to
remain competitive on the
industry.

3.8.4 Reliability of Operationalisation and Measurement Development

As the operationalisation and measurement uses on present study are mostly adopted

and adapted to some study conducted by other researcher (Stjepić A. M. et al., 2021),

(Rouhani, S. et al., 2018), (Chen, X., 2012) on different sub-context of the study, therefore, it

is vital to conduct both reliability analysis to examine and assure the instrument's reliability as

47
to ensure that the operationalisation measurements are relevant and fits to current context of

study.

A pilot test design to collect data from 25 respondent and reliability test is analyse.

Based on pilot test reliability assessment, some of items with lower factor loading is identified

and the items had been eliminated as the items probably not relevance to present study’s

context. This is to ensure that the internal consistency of the scale set or test items. Result of

reliability of pilot test are as per following table of Construct Cronbach's alpha coefficients;

Table 3.3: Construct Cronbach's alpha coefficients (Pilot test, n=25)

Item to Total
Construct Cronbach's Alpha
Correlation
Perception of the comparative advantage of Business Intelligence System (BIS)
T01_1 0.602
T01_2 0.616
T01_3 0.720
0.707
T01_4 0.717
T01_5 0.596
T01_6 0.704
Perception of business intelligence system’s (BIS) complexity
T02_1 0.936
T02_2 0.928
T02_3 0.938 0.950
T02_4 0.954
T02_5 0.930
Flexible and appropriate technological infrastructure framework
T03_1 0.895
T03_2 0.884
T03_3 0.877
T03_4 0.890
0.908
T03_5 0.917
T03_6 0.911
T03_7 0.893
T03_8 0.893
Management support
O01_1 0.873
O01_2 0.873
O01_3 0.844
O01_4 0.853 0.890
O01_5 0.899
O01_6 0.911
O01_7 0.852

48
 Organizational readiness
O02_1 0.953
O02_2 0.952
O02_3 0.945 0.956
O02_4 0.938
O02_5 0.939
Competitive Pressure (Industry and Competitors’ Absorptive Capacity)
E01_1 0.882
E01_2 0.816
E01_3 0.847
E01_4 0.777
0.835
E01_5 0.793
E01_6 0.797
E01_7 0.804
E01_8 0.780
Business Intelligence Implementation Readiness
IR_1 0.799
IR_2 0.831
IR_3 0.787
0.830
IR_4 0.759
IR_5 0.799
IR_6 0.831

3.9 Data Analysis Techniques

3.9.1 Descriptive Analysis Technique

In order to analyse the descriptive data that will be collected from survey

questionnaire, descriptive analysis technique will be used. In particular, frequency analysis

technique will be used in order to evaluate the descriptive data of participants on the basis of

number of occurrences (frequency) and evaluate measures of dispersion, central tendency,

percentiles, etc. In this study, frequency analysis will be used to evaluate the data in terms of

age, gender, position in the bank, salary, type of bank, etc. Typically, descriptive strategies

produce target descriptive of items as far as the apparent sensory traits.

3.9.2 Inferential Analysis Technique

Inferential analysis technique analyses the data obtained from sample of the study and

make inferences regarding the larger set of population from which the sample was drawn

49
(Amrhein et al., 2019). In this study, the inferential analysis technique has been used for

analysing the data collected from survey and making inferences accordingly. In particular, the

regression analysis technique will be used in order to analyses the impact of success factors

on the business intelligence implementation readiness within the banking sector of Malaysia.

To confirm the reliability, Cronbach-Alpha analysis will be performed on each of six

determinants. To further confirm the validity of the data, Composite reliability (CR) and

Average Variance Extracted (AVE) analysis will be conducted on the collected data. Besides,

to further validate the hypotheses, a Confirmatory Factor Analysis (CFA) and Structural

Equation Modelling (SEM) will be use. To further validate the hypotheses, the multiple model

regression analysis will be evaluated. The study hypotheses will be examine using the IBM

Statistical Package for the Social Sciences (SPSS) and IBM SPSS Analysis of Moment

Structures (AMOS) software due to the conceptual and theoretical complexities.

3.10 Summary of Chapter 3

In this chapter, the researcher has identified that how the research will be conducted

and what type of data collection method and analysis technique will be used in order to

analyses the descriptive and inferential data of the study. This chapter has also provided

description regarding the research design, study population, data collection method, variables

of the study, and data analysis techniques that will be used in this study in order to attain aim

and objectives of the study. This chapter has indicated that the quantitative research design

will be used in this study in order to explore the success factors that are required for the

readiness of business intelligence implementation within the context of banking sector in

Malaysia. It will allow researcher to collect data from large sample size and interpret the

responses of the targeted population using consistent and reliable quantitative data or statistical

analysis technique. It is also determined that 156 bank employees will be the sample size of

the study from which survey questionnaire will be filled out will be filled out via electronic

mail (email) or click on a hyperlink sharing. This will make researcher able to collect large

amount of data regarding factors associated with the successful business intelligence

50
implementation readiness from large set of population with relatively quick and efficient way.

In this chapter, it is also determined that frequency analysis will be used to evaluate the data

in terms of age, gender, position in the bank of the respondents. In contrast, Confirmatory

Factor Analysis and Structural Equation Modelling (SEM) will be used in order to determine

and achieve the good fit model. The regression analysis will be conduct as for the hypothesis

testing for each hypothesis. Considering a complexity conceptual on the present study, the

analysis will be examine using IBM SPSS and IBM AMOS software.

51
 CHAPTER 4

RESULTS AND DISCUSSION

4.1 Introduction

The main aim and purpose of this respective chapter is to subject the data, collected

for this research into the chosen data analysis techniques of this research and that is selected

to be correlation, regression, descriptive statistics, frequency analysis, and lastly on

confirmatory factor analysis (CFA) that’s employs Structured Equation Model (SEM).

Moreover, it can be further stated that it is also considered to be the main intent of this research

to further subject the findings of this research into a discussion that will be used to assess

whether the findings are in tandem with the hypotheses effectively.

4.2 Survey Response Analysis

With total population size of study is 164,216 employees employed in the financial

services industry, the study was designed to collect target sample of 156 employees of banking

personnel based on Taro Yamane’s formula. With the use convenience sampling technique in

reaching out the resurvey respondents, the present study able to collect 161 valid survey

questionnaires that was returned via a google form that was shared to respondent via email and

as well hyperlink sharing.

4.2.1 Respondent Demographic Analysis

The primary aim of this test is to examine the characteristics of the population of this

research in terms of age, gender, and respondents’ working position profiles.

52
 Figure 4.1: Respondent’s Age Distribution

From the above figure, it is found that most of the respondents in this research

belonged to the age group of 31 and 35 which represents 39.1% out of 161 respondents (63

respondents). This follows by age group 41 years old and above (with 25.5%) and age group

36-40 years old (24.2%). This shows that most of the participants of this research are

experienced employees.

Figure 4.2: Respondent’s Gender Distribution

53
 Above figure signifies that large number of participants in this research were female.

Female comprises of 52.2 % (84 female respondents) and male comprise of 47.8% of the

total 161 respondents.

Figure 4.3: Respondent’s Job Position

From the above figure, it is found that most of the respondents in this research

belonged to Executive workgroup position with 112 respondents (69%) out of total 161

respondents. This follows by non-executives with18% (29 respondents) and only 12.4%

respondents from Managements & others workgroup participates on the study.

Table 4.1: Respondents Profiles (n=161)

No of Total sample
Characteristics Category
respondents %
Female 84 52.2

Gender
Male 77 51.3

26-30 18 11.2

31-35 63 39.1

Age
36-40 39 24.2

41 and above 41 25.5

54
 Non-Executive 29 18

Executive 112 69.6

Position
Management &
20 12.4
Others

4.3 Goodness of Data

Prior to conduct the data analysis for hypothesis verification, it is vital to conduct both

reliability and validity analyses to examine and assure the instrument's reliability and validity.

4.3.1 Reliability

Cronbach’s alpha is the statistical measure applied to evaluate the reliability or internal

consistency of the scale set or test items. Furthermore, it can also be said that the reliability in

any provided measurement denotes to the degree to which it is a steady evaluation of the idea,

and Cronbach's alpha is referred as the finest way for computing the strength of internal

consistency in the construct items (Pal and Bharati, 2019).

Table 4.2: Construct Cronbach's alpha coefficients

Item to Total
Construct Cronbach's Alpha
Correlation
Perception of the comparative advantage of Business Intelligence System (BIS)
T01_1 0.729
T01_2 0.713
T01_3 0.703
0.782
T01_4 0.879
T01_5 0.725
T01_6 0.718
Perception of business intelligence system’s (BIS) complexity
T02_1 0.812
T02_2 0.612
T02_3 0.614 0.731
T02_4 0.657
T02_5 0.694
Flexible and appropriate technological infrastructure framework

55
 T03_1 0.801
T03_2 0.807
T03_3 0.804
T03_4 0.805
0.835
T03_5 0.806
T03_6 0.816
T03_7 0.817
T03_8 0.864
Management support
O01_1 0.640
O01_2 0.626
O01_3 0.636
O01_4 0.618 0.706
O01_5 0.642
O01_6 0.737
O01_7 0.774
Organizational readiness
O02_1 0.844
O02_2 0.604
O02_3 0.607 0.73
O02_4 0.600
O02_5 0.690
Competitive Pressure (Industry and Competitors’ Absorptive Capacity)
E01_1 0.793
E01_2 0.818
E01_3 0.778
E01_4 0.754
0.807
E01_5 0.771
E01_6 0.779
E01_7 0.818
E01_8 0.761
Business Intelligence Implementation Readiness
IR_1 0.801
IR_2 0.785
IR_3 0.805
0.804
IR_4 0.780
IR_5 0.789
IR_6 0.810

In the above table, it can be seen evidently that the Cronbach's alpha of most of the

construct is higher than 0.7, which is considered to be reliable because the standard value for

declaring consistent items is said to be alpha 0.7 or higher (Kafle, 2019). The items that show

56
 the value at 0.7 or higher are considered reliable in often social sciences circumstances. Thus,

the above table signifies those maximum constructs or items are reliable.

4.3.2 Validity

Validity refers to the ability of measuring instrument and the method used to

accurately provide the expected intended result (Linn, R.L. and Groundlund, 2000). Stewart

(2009) listed that there are three forms of validity measures in which are Content Validity,

Convergent Validity, and Discriminant Validity.

Table 4.3: Average Variance Extracted (AVE) and Composite Reliability (CR)

characteristics, criteria and formula

Name of Criteria and Literature

Characteristics Formula
Index Comments Support
Convergent Validity
Reflects a latent
Composite construct's If,
Reliability reliability and AVE= ∑ Қ2 / n CR > 0.7;
(CR) internal and
consistency Hair, Ringle,
AVE > 0.5;
& Sarstedt,
Average and
(2011)
proportion of CR > AVE
Average Awang Z.
variance (2017)
Variance thus, achieved
explained by the CR = (ΣҚ)2 / [(ΣҚ)2 + (Σ1- Қ2)]
Extracted Convergent
measuring items
(AVE) Validity
for a latent
construct

57
 Below table (Table 4.4) depicted the CR and AVE of individual constructs for the

present study.

Table 4.4: Construct Average Variance Extracted (AVE) and Composite Reliability (CR)

Average
Composite
Constructs and Variance
Item Reliability
Measurement Extracted
(CR)
(AVE)
Perception of the comparative advantage 0.8657 0.5601
of Business Intelligence System (BIS)
By adopting BIS, I might
protect organization from
T01_1
unnecessary costly
expenses and save time.
BIS is much more cost
effective than other
T01_2
decision support systems
(software).
On my perception, the use
of BIS help to facilitate
T01_3
more effective decision-
making.
On my perception, BIS
facilitates better & quicker
T01_4
execution and decision-
making.
On my perception, BIS
T01_5 simplifies organization
tasks execution.
On my perception, the
T01_6 adoption of BIS allows for
improved business control.
Perception of business intelligence 0.7997 0.5051
system’s (BIS) complexity

On my perception, the
T02_1 process of getting
conversant BIS is time-
consuming, difficult to
comprehend and complex.
On my perception, the
process of introducing the
T02_2
BIS is intricate and
complex.
T02_3 Using BIS is complex and
demanding for users.
T02_4 It is challenging to learn
how to use BIS.

58
 Resistance to the use of
BIS is a result due to
T02_5
complexity of working
with BIS.
Flexible and appropriate technological 0.7456 0.6336
infrastructure framework

T03_1 My organization has a high

degree of information
systems inter-connectivity.
Information systems in my
organization are
sufficiently flexible to
T03_2
accommodate electronic
connections to external
parties.
Our organization
information systems enable
T03_3 remote users with seamless
accessibility to centralised
data.
Data is captured and made
accessible and available to
T03_4 everyone in my
organization in real time
using information systems
Software applications can
be easily transacted and
used across multiple
T03_5
information systems
platforms in my
organization.
Our information systems
user interfaces deliver a
T03_6 consistent and transparent
access across all platforms
and applications.
External users can access
my organization's
information systems
T03_7
through a variety of
interfaces or access points
gateway (i.e., web access).
To integrate critical
enterprise applications, my
organisation makes
extensive use of
T03_8 information systems
middleware (ability to
connect different
information systems
platforms).
Management support 0.7648 0.5353

59
 Top management provide
supports the
O01_1
implementation and
adoption of the BIS.
Top management willing to
allocate sufficient
O01_2 resources for
implementation and
adoption of the BIS.
Top management actively
O01_3 participates in establishing
the vision and shaping the
strategy of BIS adoption.
Top management is willing
to accept the possible risks
O01_4 the risks associated with
BIS adoption and
utilisation.
There is a person at the
management level who
strongly advocates and
O01_5 adamant on the
implementation of the BIS
(warns the importance of
implementing the system).
There is a person at the
management level who
shows great enthusiasm in
O01_6
initiating the BIS adoption
(motivates to adopt the
system).
There are one or more
people at the management
O01_7 level who continuously
emphasizing the benefits of
BIS.
Organizational readiness 0.8266 0.5499
Managers and employees
O02_1 know how to use BIS for
business support.
Managers and employees
comprehend and
O02_2
understand well how to use
BIS in business.
We have adequate training
O02_3 and guiding procedure to
use BIS in business.
We have enough technical,
O02_4 managerial, and other
necessary skills required to
adopt the BIS.

60
 We have adequate
O02_5 financial, technological,
and other resources
required to adopt the BIS.
Competitive Pressure (Industry and 0.7913 0.5262
Competitors’ Absorptive Capacity)
We will lose our
customers, if we do not
E01_1 adopt BI (due competition
degree on business
environment)
We will need to adopt BI
E01_2 because of our business
strategic necessity.
Our organization had to
E01_3 start using BIS to maintain
its competitive advantage
in the market.
Our competitors have made
E01_4 significant investments in
acquiring new knowledge.
Our competitors can
quickly discover and
E01_5
swiftly obtain the
information they require.
Our competitors can
E01_6 discover and learn new
things effortlessly.
Our competitors are good
E01_7 at integrating information
from different sources to
their advantage.
Our competitors are good
E01_8 at using new knowledge in
their operations
Business Intelligence Implementation 0.8737 0.5364
Readiness

I will continue to use

IR_1 software and BIS (provided
by organization) as my
priority when dealing with
work task
I believe that System
IR_2 software help me to
support and simplifies/ease
my daily work task

61
 Technically, I believe that
our company possess
IR_3 technological capability to
implement BIS and related
software system
I believe that management
IR_4 are ready supports the
implementation BIS for the
benefits of the organization
I believe that we are ready
to support implementation
IR_5 of any innovation software
and BIS that introduce by
organization
I believe that with
implementation of BIS will
IR_6 ensure the organization to
remain competitive on the
industry.

By considering all those criteria that listed on table of Average Variance Extracted (AVE) and

Composite Reliability (CR) characteristics, criteria and formula; above table shows that all of

the constructs on present study are achieved the Convergent Validity as per study by Hair,

Ringle, & Sarstedt, (2011).

4.4 Descriptive Analysis

Table 4.5: Descriptive Analysis

Descriptive Statistics

Std.
N Minimum Maximum Mean
Deviation

Perception of the
comparative advantage of
161 1.33 5.00 3.7992 0.72651
business intelligence
system (BIS)
Perception of business
intelligence system’s (BIS) 161 1.00 5.00 3.5081 0.68447
complexity
Flexible and appropriate
technological 161 1.50 5.00 3.8905 0.66538
infrastructure framework
Management support 161 1.86 5.00 3.6992 0.60853
Organizational readiness 161 1.00 4.60 3.5168 0.65710

62
 Competitive pressure
(industry and competitors’ 161 1.50 5.00 3.8828 0.58957
absorptive capacity)
Business intelligence
161 1.00 4.83 3.7826 0.66928
implementation readiness
Valid N (listwise) 161

Regarding the descriptive statistics, Mishra et al. (2019) states that it is considered to

be the probable measures of the mean, median, and mode along with the standard deviation. It

is further stated that within the descriptive statistics, the element of mean occupies major

importance since it is used to accord a description of the given sample and is done through a

singular value. Based on this description, the table presented above displays the mean value

against each independent variable. In an overall scenario, the mean value of invariably each

independent variables are considered to be below 40% and this is found to denote that around

40% of the selected samples are found to strongly agree with the selected variables for example

around 38% of the samples are found to agree with the perception regarding the comparative

advantage of the business’ intelligence systems respectively. Besides, there are more 38% of

samples found to agree with each of variables that the organization possess a flexible and

appropriate technological, and environment’s factor of competitive pressure respectively.

4.5 Confirmatory Factor Analysis (CFA)

Confirmatory factor analysis (CFA) is the next step after exploratory factor analysis

to determine the factor structure of the data set. In the exploratory factor analysis, it is

exploring the factor structure (how the variables relate and group based on inter-variable

correlations), while in the confirmatory factor analysis is to confirm the factor structure that

extracted in the exploratory factor analysis. In order to perform the confirmatory factor

analysis, analysis using structural equation model (SEM) have been done.

In performing the procedure of structured equation model, several criteria have to be

fulfilled. There are three criteria that need to be fulfilled in order to make sure the model of

structured equation model is fit which are absolute model fit, incremental fit and

63
parsimonious fit. At least one of the indices that need to be fulfil for each criterion. The

criteria for model fit assessment for structured equation model as in Table 4.5.

Table 4.6: Criteria for Model Fit Assessment

Name of Index Characteristics Comments Literature Support

Absolute Model Fit: the degree to which the proposed model predicts the observed
covariance matrix

< 0.05 (good) Browne and Cudeck (1993)

Root Mean
Average discrepancy per
Square Error of < 0.08
df expected to occur in MacCallum et al.
Approximation (acceptable)
the population
(RMSEA)
< 0.10
(1996)
(mediocre)

Goodness-of- > 0.9 is a good

Overall degree of fit Browne and Cudeck (1989)
Fit Index (GFI) fit

Incremental Fit: compares the proposed model to a realistic null or baseline model

Comparative > 0.9 is a good

Bentler (1990)
Fit Index (CFI) fit

Comparative index
Tucker-Lewis > 0.9 is a good
between the proposed and Bentler and Bonett (1980)
Index (TLI) fit
null model
Relative comparison of
Normed Fit > 0.9 is a good
the proposed model to the Bentler and Bonett (1980)
Index (NFI) fit
null model

Parsimonious Fit: diagnostic on model fit due to over fitting data with too many coefficients
Normed Chi- The value
2
Square 𝑋 /𝑑𝑓 should be less Marsh and Hocevar (1985)
(CMIN/DF) than 5.0

4.5.1 Model Fit for Each Factor

For structural equation model (SEM), the model for each factor needs to be examined

and make sure the model is fit before proceed with the full model. If there is model that did

not fulfil the criteria for model fit, the modification needs to be done. In AMOS, the output

64
will show the modification indices. This process will ensure that there is no problem with the

full model.

4.5.1.1 Perception of the comparative advantage of Business Intelligence System (BIS)

Before Modification After Modification

Name of Criteria Name of Index Before Modification After Modification

Absolute Model Fit (RMSEA) 0.222 0.000

(CFI) 0.842 1.000

Incremental Fit (TLI) 0.737 1.016

(NFI) 0.828 0.997

Parsimonious Fit (CMIN/DF) 8.899 0.524

Figure 4.4: Confirmatory Factor Analysis (CFA) - Perception of the comparative advantage

of Business Intelligence System

65
 4.5.1.2 Perception of business intelligence system’s (BIS) complexity

Before Modification After Modification

Modification is not required because the initial

model is already fit

Name of Criteria Name of Index Before Modification After Modification

Absolute Model Fit (RMSEA) 0.071 -

(CFI) 0.984 -

Incremental Fit (TLI) 0.967 -

(NFI) 0.965 -

Parsimonious Fit (CMIN/DF) 1.802 -

Figure 4.5: Confirmatory Factor Analysis (CFA) - Perception of business intelligence

system’s (BIS) complexity

66
 4.5.1.3 Flexible and appropriate technological infrastructure framework

Before Modification After Modification

Name of Criteria Name of Index Before Modification After Modification

Absolute Model Fit (RMSEA) 0.157 0.000

(CFI) 0.844 1.000

Incremental Fit (TLI) 0.782 1.019

(NFI) 0.815 0.980

Parsimonious Fit (CMIN/DF) 4.946 0.521

Figure 4.6: Confirmatory Factor Analysis (CFA) -Flexible and appropriate technological

infrastructure framework

67
 4.5.1.4 Management Support

Before Modification After Modification

Name of Criteria Name of Index Before Modification After Modification

Absolute Model Fit (RMSEA) 0.23 0.000

(CFI) 0.743 1.000

Incremental Fit (TLI) 0.615 1.006

(NFI) 0.725 0.989

Parsimonious Fit (CMIN/DF) 9.442 0.862

Figure 4.7: Confirmatory Factor Analysis (CFA) - Management Support

68
 4.5.1.5 Organization Readiness

Before Modification After Modification

Modification is not required because the initial

model is already fit

Name of Criteria Name of Index Before Modification After Modification

Absolute Model Fit (RMSEA) 0.040 -

(CFI) 0.996 -

Incremental Fit (TLI) 0.992 -

(NFI) 0.980 -

Parsimonious Fit (CMIN/DF) 1.260 -

Figure 4.8: Confirmatory Factor Analysis (CFA) - Organization Readiness

69
 4.5.1.6 Competitive Pressure (Industry and Competitors’ Absorptive Capacity)

Before Modification After Modification

Name of Criteria Name of Index Before Modification After Modification

Absolute Model Fit (RMSEA) 0.335 0.054

(CFI) 0.657 0.995

Incremental Fit (TLI) 0.520 0.995

(NFI) 0.648 0.985

Parsimonious Fit (CMIN/DF) 18.956 1.467

Figure 4.9: Confirmatory Factor Analysis (CFA) - Competitive Pressure (Industry and

Competitors’ Absorptive Capacity)

70
 4.5.1.7 Business Intelligence Implementation Readiness

Before Modification After Modification

Name of Criteria Name of Index Before Modification After Modification

Absolute Model Fit (RMSEA) 0.188 0.042

(CFI) 0.847 0.997

Incremental Fit (TLI) 0.745 0.987

(NFI) 0.828 0.989

Parsimonious Fit (CMIN/DF) 6.655 1.283

Figure 4.10: Confirmatory Factor Analysis (CFA) - Business Intelligence

Implementation Readiness

71
4.5.2 Model Fit for Overall Model

Figure 4.11: Confirmatory Factor Analysis (CFA) - Before Modification (Overall

Model)

Table 4.7: Confirmatory Factor Analysis (CFA) Overall Model Fit Assessment (Before

Modification)

Recommended Fit
Fit Indices Fit Statistics
Criteria

CMIN/DF 7.215 < 5.0

Overall TLI 0.473 > 0.9
Model Fit CFI 0.542 > 0.9
NFI 0.51 > 0.9
RMSEA 0.197 < 0 .08

72
 According to Table 4.6 the assessment on the overall model fit of the initial model of

overall CFA does not achieve recommended fit criteria. Therefore, the CFA model

modification conducted based on AMOS output suggestion on modification indices as well as

eliminating some of individual factors with lesser factor loading. Prior to that, the below Figure

4.12 depicted the overall model after considering AMOS modification indices.

Figure 4.12: Confirmatory Factor Analysis (CFA) - After Modification (Overall Model)

Table 4.8: Confirmatory Factor Analysis (CFA) Overall Model Fit Assessment (After

Modification)

Recommended Fit
Fit Indices Fit Statistics
Criteria
CMIN/DF 1.819 < 5.0
TLI 0.932 > 0.9
Overall Model Fit CFI 0.952 > 0.9
NFI 0.901 > 0.9
RMSEA 0.072 < 0 .08

73
 According to Table 4.7 the assessment on the overall model fit indicates an acceptable

fit since all the fit indices under consideration are well above the recommendations value. The

CFI, TLI and NFI index also have shown improvement above the cut-off value 0.9 respectively

and are much better improvement from the initial model. Thus, the overall model fit is

considered to be adequate and acceptable for further analysis for SEM modelling

4.5.3 Structural Equation Model Path

For structural equation model (SEM), the representation diagram developed once the

CFA modelling is achieves all the recommended fit criteria as per table 4.9. For present

studies, SEM path demonstrates as AMOS represent diagram as per below diagram.

Figure 4.13: Structural Equation Model Path – Overall Model

74
 Table 4.9: Structural Equation Model (SEM) - Overall Model Fit Assessment

Recommended Fit
Fit Indices Fit Statistics
Criteria
CMIN/DF 1.743 < 5.0
TLI 0.939 > 0.9
Overall Model Fit CFI 0.966 > 0.9
NFI 0.906 > 0.9
RMSEA 0.068 < 0 .08

According to Table 4.8 the assessment on the overall SEM indicates an acceptable fit

since all the fit indices under consideration are well above the recommendations value. The

CFI, TLI and NFI index also have shown improvement above the cut-off value 0.9 respectively

and are much better improvement from the initial model of CFA.

4.6 Multiple Regression

The present study employed multiple regression analysis. The regression analysis is

the statistical test that is used to examine the cause and effect and impacting association amid

independent and dependent variables. This statistical test allows the researcher to examine the

percentage by which an independent variable can predict or explain the dependent variable

(Shrestha and Basnet, 2018). The decision rule is based on three factors, including Adjusted

R-square, the value of significance that is P-value and the coefficient value, which tells

regarding the direction of the relationship (Pal and Bharati, 2019).

Table 4.10: R-squared value and the relationship strength

R-squared value Strength of the

Literature Support
(R2) relationship
None or very weak effect
R2 < 0.3
size

0.3 < R2 < 0.5 Weak or low effect size

Moore, Notz, and
Flinger (2013)
0.5 < R2 < 0.7 Moderate effect size

R2 > 0.7 Strong effect size

75
 Based on current study, the R-squared of this model in the data analysis is

0.842, which means Business intelligence implementation readiness is predicted by 84.2% by

all independent variables that include competitive pressure, perception of comparative

advantage, perception of the complexity of BIS systems, management support, organization

readiness, and flexible and appropriate technological infrastructure framework. This implies

that the future implementation of BI systems in organizations can be predicted by all selected

independent variables in the study. Based on table 4.8 above, the obtained value of R-squared

for current study signifies that it has strong effect result.

Table 4.11: Constructs P-Value

Constructs P-value Results

Perception of the comparative advantage
P-value < 0.05 Yes
of Business Intelligence System (BIS)

Perception of Business Intelligence

P-value < 0.05 No
System’s (BIS) complexity

Flexible and appropriate technological

P-value < 0.05 Yes
infrastructure framework

Management support P-value < 0.05 No

Organizational readiness P-value < 0.05 Yes

Competitive pressure P-value < 0.05 No

Based on table 4.9 above, perception of the comparative advantage of Business

Intelligence System (BIS), flexible and appropriate technological infrastructure framework

and organization readiness statistically significant as factor toward BIS implementation

readiness as P-Value achieved less than 0.05, meanwhile other factors (perception of Business

Intelligence System’s (BIS) complexity, management support and competitive pressure) are

not statistically significant as factor toward BIS implementation readiness.

76
 Based on table 4.10 below, it is found that comparative advantage factor, flexible and

appropriate technological infrastructure framework and organization readiness factors have

moderate and positive relationship toward BIS implementation readiness. However, even

complexity factor in which the results p-value indicates not statistically significant as factor

toward BIS implementation readiness, but the Beta Weight show negative direction as per

hypothesis. Besides, even management support and competitive pressure factors have p-value

that indicates not statistically significant as factor toward BIS implementation readiness, but

the Beta Weight show positive direction as per hypothesis.

Table 4.12: Constructs Beta Weight

Constructs Beta Weight

Perception of the comparative advantage of
0.261
Business Intelligence System (BIS)
Perception of Business Intelligence
-0.003
System’s (BIS) complexity
Flexible and appropriate technological
0.274
infrastructure framework.
Management support 0.096
Organizational readiness 0.402
Competitive pressure 0.066

4.7 Hypothesis Testing

In this section, a summary of the research findings is provided in relation to the four

hypotheses of this study. Table 4.11 shows the summary result of the hypothesis testing.

Table 4.13: Summary Result of Hypothesis Testing

Hypothesis P-value Beta Weight Results

H1: Perception of the comparative
advantage of Business Intelligence
System (BIS) has a positive significant P-value < 0.05 0.261 Supported
impact on Business intelligence
implementation readiness.
H2: Perception of Business
Intelligence System’s (BIS)
complexity has a negative significant P-value > 0.05 -0.003 Not Supported
impact on Business intelligence
implementation readiness.

77
 H3: Flexible and appropriate
technological infrastructure
framework has a positive significant P-value < 0.05 0.274 Supported
impact on Business intelligence
implementation readiness.
H4: Management support has a
positive significant impact on
P-value > 0.05 0.096 Not Supported
Business intelligence implementation
readiness.
H5: Organizational readiness has a
positive significant impact on
P-value < 0.05 0.402 Supported
Business intelligence implementation
readiness.
H6: The more Competitive pressure
has a positive significant impact on
P-value > 0.05 0.066 Not Supported
Business intelligence implementation
readiness.

Hypothesis 1: Perception of the comparative advantage of Business Intelligence System

(BIS) has a positive significant impact on Business intelligence implementation readiness.

The first hypothesis of this study is Perception of the comparative advantage of Business

Intelligence System (BIS) has a positive significant impact on Business intelligence

implementation readiness. The result indicates that perception of the comparative advantage

of Business Intelligence System (BIS) were significantly positively (p< 0.05) related to

Business intelligence implementation readiness. Therefore, the first hypothesis is accepted.

Hypothesis 2: Perception of Business Intelligence System’s (BIS) complexity has a

negative significant impact on Business intelligence implementation readiness.

The second hypothesis of this study is to examine the relationship perception of Business

Intelligence System’s (BIS) complexity towards the implementation readiness of BIS. The

results indicates that perception of BIS complexity was found to be not significantly related

(p > 0.05) towards the BIS implementation readiness. Therefore, the second hypothesis of this

study can’t be achieved and rejected.

78
Hypothesis 3: Flexible and appropriate technological infrastructure framework has a

positive significant impact on Business intelligence implementation readiness.

The third hypothesis of this study is to examine the relationship between organization’s

flexible and appropriate technological infrastructure framework toward the readiness of BIS

implementation. The results indicated that the two variables were not significantly (p < 0.05)

related to each other. Therefore, the third hypothesis is accepted.

H4: Management support has a positive significant impact on Business intelligence

implementation readiness.

The fourth hypothesis of this study was to examine the relationship between the management

support and the BIS implementation readiness. The results revealed that there is no significant

relationship between between the management support and the BIS implementation readiness

(p > 0.05). Therefore, the fourth hypothesis of this study is not supported and rejected.

Hypothesis 5: Organizational readiness has a positive significant impact on Business

intelligence implementation readiness.

The fifth hypothesis of this study is to examine the organization readiness toward BIS

readiness to implement BIS. The results revealed that there is a significant relationship

between organization readiness and BIS implementation readiness (p < 0.05). Therefore, the

fifth hypothesis of this study is accepted.

Hypothesis 6: The more competitive pressure has a positive significant impact on

Business intelligence implementation readiness.

The sixth hypothesis of this study to examine between the relationship of competitive pressure

and BIS implementation readiness. The result indicates that this environmental factor of

competitive pressure includes both industry and competitors’ absorptive capacity was found

to be not significantly related (p > 0.05) towards the BIS implementation readiness. Therefore,

the sixth hypothesis of this study is rejected.

79
4.8 Summary of Chapter 4

This chapter four (4) describes and discusses the analysis process of data collected

throughout the research study. The analysis involves the analysis of survey response, describes

the demographic analysis and provide the descriptive analysis of the data collected.

Furthermore, the chapter also provide analysis of measurement of validity and reliability of

the data and findings indicates that the data use on the research study are valid, confirms the

reliability of Cronbach Alpha for each variable used and the data is confirm achieved

Convergent Reliability by analysis of its Composite Reliability (CR) and Average Variance

Extracted (AVE) measures that similarly to convergent reliability criteria by Hair, Ringle, &

Sarstedt, (2011) Finally Confirmatory Factor Analysis (CFA) and Structured Equation Model

(SEM) is developed using the presentation of IBM AMOS software, and also discusses

analysis model fitness indices. Besides, the chapter describes the regression analysis and

conduct the hypothesis testing for each hypothesis that had been developed on early stage of

the research.

The outcomes of the results confirm that H1, H3 and H5 in which are Perception of

the comparative advantage of Business Intelligence System (BIS), flexible and appropriate

technological infrastructure framework and organizational readiness have a positive

significant impact on Business intelligence implementation readiness. Meanwhile, the rest of

hypothesis (H2, H4 and H6) does not attain a significant relationship on the implementation

readiness of BIS in banking industry in Malaysia.

80
 CHAPTER 5

CONCLUSION

5.1. Introduction

In the present era, business intelligence (BI) in banks, specifically in Malaysia is

increased with the increasing demand and competition in the market. Business intelligence

(BI) application supports work operations of banks effectively and efficiently. This chapter of

the dissertation presents a summary of findings, recommendations, future implications, and

conclusion of the complete study. In summary of findings, the researchers have analysed in

order to make the research value and to ensure reliability and validity in the study. The

researchers have carried out the demographic analysis, descriptive analysis, validity and

reliability analysis included Cronbach Alpha, Composite Reliability (CR) and as well as

Average Variance Extracted (AVE) analysis. Besides, researcher conducted Confirmatory

Factor Analysis (CFA) using Structured Equation Modelling (SEM) and furthermore

conducted regression analysis for hypothesis modelling. The analysis and results of study has

discussed on previous chapter. Therefore, in this chapter discussed the summarised finding on

subchapter 5.2. The research limitation and direction for future research described the scope

of research and its role in assisting the studies in the future. In addition to this, this study can

be explored in other ways as well, and other methods of research can be utilized to create

effective results. This study is beneficial for the banking sector of Malaysia as the benefits of

the business intelligence (BI) system are provided along with the critical success factors for

the purpose of comprehending and managing the challenges arising from the execution of the

business intelligence (BI) plan.

5.2 Success Factors for Business Intelligence System (BIS) Implementation

Readiness for Banking Sector in Malaysia

The present research was conducted via the quantitative method, and the findings of

the study were based upon statistical analysis. The literature review was focused upon the

81
procedure acquired for obtaining information from secondary sources. The study’s findings

from statistical analysis showed descriptive and inferential analysis. The results from the

descriptive analysis showed the mean of the independent and dependent variables.

5.2.1 Perception of the comparative advantage of Business Intelligence System (BIS)

Consistent with most prior findings, the study analysis findings indicates that

perception of the comparative advantage of Business Intelligence System (BIS) were

significantly positively (p< 0.05) related to Business intelligence implementation readiness.

These findings also support the results proposed by Wang et al. (2018), where the researcher

also found that methods BI systems enhance the business data analysis and consequence in

higher customer support and company profit that further modifies organization’s perception

and its readiness regarding acceptability and implementation of BI to gain its comparative

advantage.

5.2.2 Perception of Business Intelligence System’s (BIS) complexity

The analysis results indicates that perception of BIS complexity was found to be not

significantly related (p > 0.05) towards the BIS implementation readiness. Therefore, the

second hypothesis of this study can’t be achieved. Based on the findings, it is implying that

when perception about the complexity of the system increases, implementation readiness also

increases. These finding supported the results proposed by Stjepić A. M. et al., (2021) where

the researchers also found do not attain a significant impact on the implementation of BIS.

Similarly, according to some studies (Gu et al., 2012), (Ifinedo, 2011) complexity is

insignificant to innovation implementation. In other hand, these findings contradict the results

provided by Rouhani et al. (2018), where the researcher signified complexity as the main

determinant of organisational readiness. If complexity is higher, organisations do not opt to

implement Business Intelligence systems. The explanation for such results is the present study

is due to facts that majority of participants are executive level, and related to previous finding

on comparative advantages indicates that have significant relationship to BIS implementation,

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therefore to the fact that the important of BIS to facilitate the decision-making process and

more value added are more superior compared to its complexity during the initial

implementation stage.

5.2.3 Flexible and appropriate technological infrastructure framework

Consistent to previous study, the present study analysis findings indicated that the two

variables are statistically significant (p < 0.05) related to each other. In the context of current

study, its indicates that the BI does necessarily must have flexible and suitable infrastructure

aligned with the strategic aims and objectives of the organisation to enhance its

implementation across the business. These findings aligned and supported by the results

provided by Chen, X., (2012), where the researcher signified that he positive relationship

between IT infrastructure flexibility and usage of business intelligence. As a result, Chen

suggests that an information system's flexibility and appropriateness can stimulate its BIS

implementation on the organization. The explanation for such results is the implementation of

BIS require proper information management infrastructure in organization as to ensure the BIS

can be use optimally. The finding also consistent with study by Mungree (2013) that stated

that BIS implementation requires high degree of technological infrastructure to technically

compatibly fit with Business Intelligence software and hardware.

5.2.4 Management support

Within the organization dimension, the results study on the management support

constructs is contrarily to the expectation. The analysis study results revealed that there is no

significant relationship between between the management support and the BIS implementation

readiness (p > 0.05). Therefore, in the context of current study shows that the increase of

management support towards the implementation of BIS does not have significantly correlate

on the readiness to implement BIS project in organisations. These findings aligned with study

by Owusu (2017) on the adoption of BIS in Ghanaian Bank, where the study revealed that top

management support does not statistically significant to adoption of BIS for Ghanaian Bank.

83
Similarly, the finding is supported by results of the study by Stjepić A. M. et al., (2021) where

researchers found that top management organizational support is not significant on BIS

adoption. The explanation for such results can rely on the facts that are least management

representative participated on the study which are only 20 respondents or 12.4%. Due to that,

in general the majority of other respondents are not from management level, the view is not

from management perspectives and unavoidable possibly cause a bias on judging the construct

of the study.

5.2.5 Organizational readiness

According to study by Ifinedo (2011), within organizational dimension, the financial

resources, and employee competency and knowledge is described to constructs of the

organization readiness in organization. Consistent with previous literature study and other

empirical study, the results on current study revealed that there is significant relationship

between organization readiness and BIS implementation readiness (p < 0.05). Therefore, in

current context of the study, it revealed that the readiness of the organization and employee in

term of skills, competency, set of guided procedure, resources capabilities etc. is necessarily

require as to guarantee and it impacting the readiness of BIS implementation. Puklavec et al.,

(2017) revealed that Organizational readiness has a significant impact on BIS evaluation. The

present study is finding is in line supported by Owusu (2017), Rouhani et al. (2018), Stjepić

A. M. et al., (2021) that indicates organization readiness is significantly have positive

influence toward the BIS adoption.

5.2.6 Competitive pressure

Competitive pressure has been discovered to be a determinant and as well as a

substantial influence towards the implementation of many technical innovations (Olszak et al.

2006) (Puklavec et al., 2014). However, surprisingly, despite the intense competitiveness in

the banking sector, this study found that the analysis results of the current study do indicate

that this environmental factor of competitive pressure includes both industry and competitors’

84
absorptive capacity was found to be not significantly related (p > 0.05) towards the BIS

implementation readiness. These findings also support the results proposed by Owusu (2017)

where the study indicates competitive pressure does not statistically significant to adoption of

BIS for Ghanaian Bank. Similarly, Sujitparapitaya et. al (2012) in his study in which based on

data collected from 243 participants in USA indicates that competitive pressure does not

significantly relate to BIS implementation. But this finding is contradicting to the results

provided by Boonsiritomachai et al., (2016), Rouhani et al. (2018) and Stjepić A. M. et al.,

(2021) where the researchers found that competitive pressure has a significant impact on BIS

implementation and adoption. The present study results can be explained as sampling data for

this factor are from diverse job background of employee in which slightly biased to job group’s

perception and perspective. In term of different type of banks and institutions, there are variety

of environment brings a different challenges and dynamicity the institution involved possibly

explained the findings of the study.

5.2.7 Other findings

Apart of the CFA and regression findings, in the general of individual frequency

analysis showed that the majority of the participants agreed that organisations should

implement business intelligence systems in order to improve their performance because

business intelligence systems are considered more effective in terms of managing a large

amount of data which can become a problem for organisations. It was also shown in the results

that around 51.1% of participants agreed (25.5% agree and another 26.1% are strongly agreed)

to the fact that business intelligence systems facilitate the decision-making process, which can

be analysed by saying that the remaining participants do not agree with this statement.

Most of the participants in which 75.8% participants agreed (47.8% agree and 28.0%

strongly agreed) and have a positive perception of the business intelligence system to accord

better execution and deliverance of the company’s intended projects. Furthermore, it can be

stated that Business Intelligence Systems provides better data quality and thus helps in

developing a better understanding regarding the project’s requirements. It was also analysed

85
from the analysis that the majority of the participants agreed to the fact that Business

Intelligence systems can be regarded as to be inherently complex, which contributed to the

inability of the organisation to gauge its data effectively. It was also found in the results

obtained from the participants that around 77.7% of the respondents favoured that business

intelligence system acts proactively in terms of managing information, large amount of data

and allows for improved business control in which is considered beneficial for businesses.

5.3 Implications of The Study

As the purposes of the study to empirically explore success factors for Business

Intelligence System (BIS) implementation readiness for Malaysian banks, therefore the study

offers some theoretical and practical contributions.

5.3.1 Contribution to Theory

The key contribution of the present study is the development and the empirical study

validation on the exploration of success factors for readiness of banking sector in Malaysia to

feasibly adopt Business Intelligence System (BIS). A thorough review of the literature on the

BIS, implementation and adoption had been discussed on earlier from TOE framework

perspective on present study.

Throughout the analysis of collected participant’s survey data, the study validated the

TOE framework theories on the context of banking sector in Malaysia. Furthermore, there is

no specific empirical study made regard to BIS implementation readiness for the context of

Banking industry in Malaysia to date as of the present paper conduct. Therefore, with a

validated literature that had been reviewed and discussed together with empirical study

conduct on present study, it will provide empirical evidence on TOE framework in context of

Malaysia banking sector. With the present study employs Confirmatory Factor Analysis (CFA)

and Structured Equation Modelling (SEM), it confirms the factor structure that extracted in

the exploratory factor analysis. Therefore, CFA and SEM analysis and model representation

using IBM AMOS create better understanding on how the overall model look in graphical

86
view and as well demonstrates how the factors and constructs item are inter-related or

covariates on each other. These cross related items could provide a basis to future researcher

to consider to apply similar item or questions on other factor or variables. Therefore, the

present study offers and assist future researcher to conduct the similar study based on more

specialized scope as well on different sectors.

5.3.2 Practical Implications

The findings of present study offer significant and useful implications that applicable

to both theoretical and practical context. Business Intelligence Systems (BIS) is a part of

Decision Support System (DSS) which facilitate complex decision-making, induces value

addition in the pre-existing business culture. With the implementation of BIS on the

organization, BIS allow the organization especially banks to evaluate large data of the

customers effectively and increase customer satisfaction. Due to value addition and benefits

of BIS, it has led to the adoption and implementation of BIS by a wide range of businesses

from various industries and geographical locations. However, the BI project plan failed due to

a lack of BI knowledge and a poor understanding of the BI. Due to ineffective or failure on

the BIS adoption, the organization could not enjoy the overall benefits and impacts of BIS

optimally, and this could result of wasted resources allocation. It is necessary to organization

to plan, organize and implement the system properly, and prior to implementation, the

organization is necessary to assess the readiness of all dimensions of technological,

organizational and environmental as to reduce the failure rate of the adoption.

Practically, the significance present study and the findings is helpful to organization

and management to analyse the factors that can play a role in the success of the implementation

of the organisation. The study suggests that perception of business comparative of BIS,

organization’s flexible and appropriate technological infrastructure framework and

organizational readiness are vital to stimulate the BIS adoption and feasible implementation

of BIS for banking industry in Malaysia. Practically, the organization could provide better

understanding and highlight to employee how the BIS could offer comparative advantage and

87
value addition to organization. Technically, prior to the BIS adoption and implementation, the

organization must ensure that the organization are technically ready and possess an appropriate

flexible information management system (both hardware and software) that technically fit to

adopt BIS as to induce the success rate of implementation, In term of organizational readiness,

the managerial must play vital roles to equip the organization and employee with set of

necessary skills, competency, set of guided procedure, resources capabilities etc. Although the

study findings indicate that BIS’s complexity, management sponsorship and support, and

competitive pressure does not attain statistical significance relationship to BIS implementation

readiness, but managerial should consider to take it into account as well as these factors

probably could complement other factors and improve the overall process of implementation

in practical.

Additionally, the organisation could consider to understands and adopt similar

investigation as a brief pre-check assessment to organisation prior to stage of evaluation,

adoption, implementation and use of BIS to understand and assess the readiness level of all

factors.

5.4 Limitation of the Study

The present study, like others empirical study has limitations. The study findings and

the results present probably cannot be generalized the BIS implementation readiness for all

sector or for all geographical context. The present study designed to collect target sample of

156 employees of banking personnel based on Taro Yamane’s formula whereby higher level

of acceptable sampling margin of error (0.08) is considered on the study due to time constraints

of investigation and considering response rate of respondent to perform additional task during

their busy schedule. Besides due to pandemic that hit the world, there was some constraints on

data collection methods, where is there is no opportunity to conduct face to face interviews

and qualitative analysis as it provides in-depth knowledge regarding the respective area of

study. The initial plan of the study is to conduct a quantitative method and to follow up with

qualitative face to face interview with targeted respondent for each factor and as well with

88
organization’s Subject Matter Expert (SME) on each factor as to understand in-depth

knowledge regarding the respective area of study. Besides, this is to ensure the element of

trustworthiness as well. Due to that, the questionnaire developed and reach out to participant

in general.

Additionally, another limitation is the bias and variation on the data collected where

by all the TOE dimension collected from diverse job group background and from various bank

type environment. Therefore, the insights and judgement towards factors and constructs

probably varied and biased to their own perspective of view. Due to the fact that unavailability

to conduct qualitative method, there is not adequate information on the level of adoption (i.e.,

adopter or non-adopter, evaluation, post evaluation), as well information on technical

readiness level of each of the organisation.

5.5 Direction for Future Research

The findings of this research provide suggestions and some specific guidelines for the

practitioners and researchers in the banking sector of Malaysia, which could be used

effectively in the future. The researchers can carry out further investigation on the issue from

distinct perspectives and collect the data from the various context in order to create a better

understanding related to the efficiency of business intelligence (BI) system for the banking

sector. Additionally, the researchers can conduct the study on more specialized or niche, or to

narrow down the scope as to the there are few types of financial institutions and banks in which

that different and dynamic environment possess different resources capability, various

strategic planning and as well have different challenges. It would help the researchers in

having varied and less biased views with a more reliable and valid interpretation of the

information.

Future studies can use a variety of different methods, which can ensure the element of

trustworthiness as well. Moreover, other ways of collecting data can be considered. This

research has used primary sources for collecting data, and it has adopted a quantitative method

where by conducted on general user and practitioner. Future studies can use a secondary

89
method of data collection with qualitative analysis as it provides in-depth knowledge regarding

the respective area of study. Future researchers should conduct studies via mixed methods of

quantitative and qualitative so that they can provide a new perspective and represent the study

from a new angle. The data analysis can also be done through thematic analysis, which

involves the perspective of participants regarding the business intelligence system in the

organisation. Data can be collected from larger sampling populations in order to create

authenticity in the study. Additionally, to ensure more accuracy on each factor on construct,

the researchers can apply and aim the both quantitative and qualitative method toward more

specific targeted group and refer to Subject Matters Expert (SME) for each of construct. In

example, considering TOE theoretical framework as a basis of study, on Comparative

Advantage constructs of Technology dimension, the researcher can apply the survey on

general to all employee as a main stakeholder on the organization including system user,

executives, strategic business planning unit and management. For complexity, researcher

could apply the question to BIS user and as well the management. However, for flexible and

appropriate technological infrastructure framework construct, the researcher can target

technical SMEs including Chief Information Officer and Information Systems executive or

custodian of Information Management System on the organization. On the Organizational

dimension, for Management Support factor, research can aim both qualitative and quantitative

approach on the executives, strategic business planning unit and management level,

meanwhile for Organization Readiness factor, the researcher can aim the study on any of

employee as a system user as to understand their whole organizational readiness toward the

implementation of BIS. Furthermore, on the Environmental dimension, for the Competitive

Pressure factors, the researcher can aim the study using both qualitative and quantitative

methods to targeted group of representatives from strategic business planning unit and

management group as this will help the researchers in in depth insights with less biased views

and more reliable view on the factors, as well valid interpretation of the information.

Furthermore, it is suggested for future studies to consider the importance of business

intelligence (BI) system in other sectors as well, which may include, manufacturing sector,

90
retail sector, agricultural sector, energy sector, health care sector, and so on. The diverse areas

would benefit the operational and financial working of organizations lying under their

respective sector. Banks of other countries or from cross borders can be considered for future

studies, for instance, China and the USA. Future researchers can link the significance of the

business intelligence (BI) system in the banking sector during the uncertain situation of the

Covid-19 pandemic as the BI system has significantly helped the organizations in this

situation.

Future researchers can add more variables in the research so they can analyse their

results and represent different perspectives of business intelligence systems in organisations.

They can collect data from different companies that have implemented business intelligence

systems in order to enhance their current performance. Therefore, the researcher can evaluate

and learn the success factors comprehensively. Furthermore, the researcher can evaluate and

compare the significance value and benefits of BIS implementation between adopter and non-

adopter.

Moreover, future researchers can relate business intelligence with the innovation in

technology and its uses so that the requirements of consumers can be fulfilled. Future

researchers can use content analysis for analysing their data so that quantitative and qualitative

results can be compared. Future researchers can also include literature from the latest

published articles related to business intelligence systems. Additionally, the researchers can

conduct study on the post implementation evaluation and as well as assessment of BIS

Maturity Level on BIS adopters such as to assess the maturity stage whether on strategic level,

tactical level, and operational level.

5.6 Conclusion

Nowadays, the use of business intelligence (BI) in the banking sector of Malaysia has

been increased. It involves applications and business models for the purpose of collecting,

storing, and analysing the information to improve the existing business modelling and data

technology. The implementation of BI encourages value addition in the existing business

91
culture, which makes essential variations in establishing customer base through conversion of

raw information into useful information with the standardized help database. BI effectively

supports the operational activities and efficiently integrates the existing systems, which results

in further development and innovation in the banking sector. The significant success factor of

BI is that it provided quality data and process information, which fulfils the demand of the

targeted market. BI is a part of the Decision Support System (DSS), which supports complex

decision-making and resolves ill-structured problems. Furthermore, it facilitates information

execution by using databases and software systems.

In the last few years, the banking sector in Malaysia has gone through major changes,

which has increased the demand for a business intelligence system. The banking sector of

Malaysia is complex but has a better alliance and evolutional outputs. A framework is

recognized that has the ability to effectively implement BI systems in banks along with the

incorporations of distinct domains. With the rapid growth of competition in the market and the

demand of potential customers, BI technologies can boost organizational productivity and can

improve the relationship between the banking sector and customers. Banks in Malaysia

consider technological factors before implementing the application in order to ensure

flexibility, reliability, and validity in the process. Technological factors assure the provision

of relative advantage, flexibility, and compatibility. By considering the factors, the digital

application changes information at hand into actionable comprehensions (Lim, Chen, & Chen,

2013). Then the flexible IT infrastructure towards incorporating and reconfiguring information

technology resources both internally and externally for the purpose of giving response to the

prevailing opportunities and threats in the market. The banks in Malaysia are recommended to

integrate a cross-functional team from the beginning in order to ensure successful

implementation.

Management support and sponsorship is dynamic, as it demonstrates the rest of the

business and the strategic standing. The stakeholders also play an essential role in the

execution of business intelligence applications; they must be identified for the purpose of

understanding and using the data for benefit. In addition to this, an organizational factor plays

92
an essential role in the smooth implementation of business intelligence technology. It involves

a contribution of financial and technical resources for a successful implementation.

The BIS delivers personalized services to potential customers with the assistance of

refined data analysis methods. It improves business data and provides greater customer

support, which enhances the profitability of banks. The upper management makes decisions

regarding the allocation of financial and technological resources for introducing the BIS in an

organization. An adequate amount of resources should be utilized to attain success, which

would include staffing, operational and financial resources, and the cost associated with

information technology (Moro et al., 2015). The availability of material resources, awareness

related to innovation, organizational support brings positive changes in the business.

Environmental factors can pressurise the banks or organizations for implementing new

digital tools in order to provide better experiences to customers. For instance, emerging

competition. There is a presence of threats inflicted on an organization in a bank. The BIS

intensifies the positive externalities to mitigate the effect of negative outcomes specifically for

a bank, such as fraudulent activity in the process of financial transactions. BI system handles

this issue by identifying speculative transactions through a firewall, which prevents

information theft. Conclusively the effective execution of business intelligence system in

banking sector of Malaysia is vital to ensure outcome of BIS implementation meets the

objective of BIS and also provide a beneficial value to the organization.

5.7 Summary of Chapter 5

This chapter five (5) describes and discusses in this chapter discussed the summarised

finding on subchapter 5.2. The outcomes of the analysis from Chapter four (4) confirm that

H1, H3 and H5 in which are Perception of the comparative advantage of Business Intelligence

System (BIS), flexible and appropriate technological infrastructure framework and

organizational readiness have a positive significant impact on Business intelligence

implementation readiness. Meanwhile, the rest of hypothesis (H2, H4 and H6) does not attain

a significant. Therefore, in chapter five (5), researchers explained and discussed the results

93
obtained that insignificant relationship due to demographic of survey participant which are

that majority of participants are executive level and the view is not from management

perspectives and unavoidable possibly cause a bias on judging the construct of the study.

Besides, the discussion of findings of study on success factor toward feasible BIS

implementation also been supported by findings from others empirical study by other

researchers.

Both research implications to theoretical and practical to managerial discusses in this

chapter, in which in this present study provides a validation to TOE framework empirically

regard to Malaysia banking industry context and practically offer useful guidelines to

organization to assess the readiness to adopt this system whereby the application of guidelines

could possibly reduce the risk of failure rate of the system’s implementation. The research

limitation such as time constraints and unable to conduct initial research design of performing

quantitative method follows by qualitative method of interview session with targeted

respondents of Subject Matter Expert (SME) described and discussed on this chapter. The

direction for future research described and its role in assisting the studies in the future such as

the recommendation to conduct future research using mixed method as well to conduct it on

research on targeted respondent as create effective results. This study is beneficial for the

banking sector of Malaysia as the benefits of the business intelligence (BI) system are provided

along with the critical success factors for the purpose of comprehending and managing the

challenges arising from the execution of the business intelligence (BI) plan.

94
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APPENDICES

112
 APPENDIX
September 2021
Dear respondents,
Subject: Participant Information Sheet
Researcher: Muhamad Faizal Bin Hanafi, Graduate School of Business, Master of Business
Administration (Business Analytics)
This is Muhamad Faizal Bin Hanafi, a Master candidate in the Graduate School of Business at Universiti
Tun Abdul Razak (UNIRAZAK), Malaysia. As part of my MBA research thesis as UNIRAZAK
Graduate School of Business, I am conducting a survey to explore the implementation readiness of the
Business Intelligence System (BIS) in banking sector in Malaysia.

BIS is all kind of software or system adopted to simplify daily operation such Microsoft Office, SaAS,
Microsoft Power BI, Tableau, Tibco Spotfire, and Domo or specific system that are used by many in
executing their daily responsibilities.

Participation from you would involve completing this questionnaire by using Google Form. Therefore,
all questions asked will be about the BIS implementation readiness / adoption on the sector. The
questionnaire probably takes less than 10 minutes to complete.

I would appreciate it if you could give your cooperation by devoting your precious time to the survey.
Please try to answer all of the questions as honestly and accurately as possible in the said context. All
responses to this survey will held in strictest of confidential. the findings from this survey will reported
only in aggregated level and anonymity of individuals that response to this questionnaire is guaranteed.

Should you have any queries or wish to know more about this study, feel free to contact me,
Muhamad Faizal Bin Hanafi
Graduate School of Business
Universiti Tun Abdul Razak (UNIRAZAK)
195A, Jalan Tun Razak 50400 Kuala Lumpur, Malaysia
+6012 6370 677
[email protected]

Your kind cooperation and contribution to my study is highly appreciated. Thank you.

113
Topic: Exploring Success Factors for Business Intelligence System (BIS)
Implementation Readiness: A Study on Malaysia Banking Sector

Aim of Questionnaire: This research determined that 156 bank employees include non-
executives, executives and managers will be the sample size of the study from which survey
questionnaire will be filled out.

1. Name:

2. Age
 21-25
 26-30
 31-35
 36-40
 41 and above

3. Sex
 Male
 Female

4. Position
 Non-Executive
 Executive
 Management / Others

5. Year of experience:

Factors and Constructs Strongly Disagree Neutral Agree Strongly

disagree agree
T01: Perception of the
comparative advantage
of business intelligence
system (BIS)

Key sources:
(Stjepić A. M. et al., 2021),
(Rouhani, S. et al., 2018)

By adopting BIS, I might

protect organization from
unnecessary costly
expenses and save time.

114
BIS is much more cost
effective than other
decision support systems
(software).
On my perception, the use
of BIS help to facilitate
more effective decision-
making.
On my perception, BIS
facilitates better & quicker
execution and decision-
making.
On my perception, BIS
simplifies organization
tasks execution.
On my perception, the
adoption of BIS allows for
improved business control.
T02: Perception of
business intelligence
system’s (BIS)
complexity

Key sources:
(Stjepić A. M. et al., 2021),
(Rouhani, S. et al., 2018)

On my perception, the
process of getting
conversant BIS is time-
consuming, difficult to
comprehend and complex.
On my perception, the
process of introducing the
BIS is intricate and
complex.
Using BIS is complex and
demanding for users.

It is challenging to learn
how to use BIS.

115
Resistance to the use of
BIS is a result due to
complexity of working
with BIS.
T03: Flexible and
appropriate technological
infrastructure
framework

Key sources:
(Chen, X., 2012)

My organization has a high

degree of information
systems inter-connectivity.
Information systems in my
organization are
sufficiently flexible to
accommodate electronic
connections to external
parties.
Our organization
information systems
enable remote users with
seamless accessibility to
centralised data.
Data is captured and made
accessible and available to
everyone in my
organization in real time
using information systems
Software applications can
be easily transacted and
used across multiple
information systems
platforms in my
organization.
Our information systems
user interfaces deliver a
consistent and transparent
access across all platforms
and applications.
External users can access
my organization's
information systems

116
through a variety of
interfaces or access points
gateway (i.e., web access).
To integrate critical
enterprise applications, my
organisation makes
extensive use of
information systems
middleware (ability to
connect different
information systems
platforms).
O01: Management
support

Key sources:
(Stjepić A. M. et al., 2021),
(Rouhani, S. et al., 2018)

Top management provide

supports the
implementation and
adoption of the BIS.
Top management willing
to allocate sufficient
resources for
implementation and
adoption of the BIS.
Top management actively
participates in establishing
the vision and shaping the
strategy of BIS adoption.
Top management is willing
to accept the possible risks
the risks associated with
BIS adoption and
utilisation.
There is a person at the
management level who
strongly advocates and
adamant on the
implementation of the BIS
(warns the importance of
implementing the system).

117
There is a person at the
management level who
shows great enthusiasm in
initiating the BIS adoption
(motivates to adopt the
system).
There are one or more
people at the management
level who continuously
emphasizing the benefits
of BIS.
O02: Organizational
readiness

Key sources:
(Stjepić A. M. et al., 2021),
(Rouhani, S. et al., 2018)

Managers and employees

know how to use BIS for
business support.
Managers and employees
comprehend and
understand well how to use
BIS in business.
We have adequate training
and guiding procedure to
use BIS in business.
We have enough technical,
managerial, and other
necessary skills required to
adopt the BIS.
We have adequate
financial, technological,
and other resources
required to adopt the BIS.
E01: Competitive
pressure (industry and
competitors’ absorptive
capacity)

Key sources:
(Stjepić A. M. et al., 2021),
(Rouhani, S. et al., 2018)

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We will lose our
customers, if we do not
adopt BI (due competition
degree on business
environment)
We will need to adopt BI
because of our business
strategic necessity.
Our organization had to
start using BIS to maintain
its competitive advantage
in the market.
Our competitors have
made significant
investments in acquiring
new knowledge.
Our competitors can
quickly discover and
swiftly obtain the
information they require.
Our competitors make a
serious effort to acquire
new knowledge as soon as
it becomes available.
Our competitors constantly
try to increase the number
of information sources
they have.
Our competitors can
discover and learn new
things effortlessly.
Our competitors can easily
interpret the information
they acquire.
Our competitors are good
at connecting new and
existing knowledge.
Our competitors are good
at integrating information
from different sources to
their advantage.

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Our competitors’ existing
practices make it possible
to use new and current
capabilities.
Our competitors are good
at using new knowledge in
their operations
IR: BIS Implementation
Readiness

Key sources:
(Chen, X., 2012)
(Stjepić A. M. et al., 2021),

I will continue to use

software and BIS
(provided by organization)
as my priority when
dealing with work task
I believe that System
software help me to
support and simplifies/ease
my daily work task
Technically, I believe that
our company possess
technological capability to
implement BIS and related
software system
I believe that management
are ready supports the
implementation BIS for the
benefits of the organization

I believe that we are ready

to support implementation
of any innovation software
and BIS that introduce by
organization
I believe that with
implementation of BIS will
ensure the organization to
remain competitive on the
industry.

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 APPROVAL PAGE

TITLE OF PROJECT PAPER: EXPLORING SUCCESS FACTORS FOR

BUSINESS INTELLIGENCE SYSTEM (BIS)
IMPLEMENTATION READINESS: A STUDY ON
MALAYSIA BANKING SECTOR

NAME OF AUTHOR : MUHAMAD FAIZAL BIN HANAFI

The undersigned certify that the above candidate has fulfilled the conditions of the project
paper prepared in partial fulfilment for the degree of Master of Business Administration.

SUPERVISOR

Signature : _________________________

Name :

Date :

ENDORSED BY

_________________________

Dean

Graduate School of Business

Date:

121