Investigating the Factors Affecting Business Intelligence Systems Adoption: A Case Study of Private Universities in Malaysia

Abstract

This study explores the factors influencing the adoption of Business Intelligence Systems BIS in Higher Educational Institutions HEIs, and also evaluate the extent of adoption in the universities. A research framework was developed based on the Technology-Organization-Environment TOE framework and the Diffusion of Innovations DOI theory, comprising of ten factors which were hypothesized and tested for the adoption of BIS in HEIs. Data was collected through a paper survey questionnaire from a sample of 120 managers and academicians in twelve private universities in Selangor State, Malaysia which were analyzed through Partial Least Squares Structural Equation Modeling PLS-SEM. The findings revealed that Absorptive Capacity, Competitive Pressure, Complexity, IT Infrastructure, Presence of Champion, Top Management Support, and Vendor Selection, are the factors influencing BIS adoption in the universities. The results also indicate that most private universities in Malaysia are currently involved in level 2 of BIS adoption. Other implications are also discussed.