Effect of Business Intelligence and IT Infrastructure Flexibility on Organizational Agility

Abstract

There is a growing use of business intelligence (BI) for better management decisions in different industries. However, empirical studies on BI are still scarce in academic research. This research investigates BI from an organizational agility perspective. Organizational agility is the ability to sense and respond to market opportunities and threats with speed. Drawing on systems theory and literature on organizational agility, business intelligence, and IT infrastructure flexibility, we hypothesize that BI use and IT infrastructure flexibility are two major antecedents to organizational agility. We developed a research model to examine the effect of BI use and IT infrastructure flexibility on organizational agility. Survey data were collected and used to assess the model. The results support the hypothesis that BI and IT infrastructure flexibility are two significant antecedents of organizational agility. This research is a pioneering work that empirically investigates the significance of BI in business context