BUSINESS INTELLIGENCE AND VALUE ADDED: EMPIRICAL EVIDENCE FROM GCB BANK (GHANA) LIMITED
Asian Journal of Mathematics and Computer Research,
Page 1-19
Abstract
As the debate on the contribution of business intelligence to value added by firms continues, this study empirically investigated the mediating impacts of size and community on the relationship between business intelligence and value added by GCB Bank (Ghana) Limited using audited secondary data for six years (2015 – 2020). It adopted technology-organisation-environment theory. Business intelligence is the independent variable and it has two proxies (net book values of hardware and software). The dependent variable is value added by the bank. The mediating variables are bank size (total assets of the bank) and bank community (corporate social responsibility). Six literature backed hypotheses were developed and tested using OLS regression analysis and partial correlation technique, and the main findings of the study are: (i) computer hardware, software, bank size, and investment on community (CSR) have significant effects on value added by the bank; (ii) bank size did not significantly mediate the relationship between business intelligence and value added by the banks; and (iii) investment on community by way of corporate social responsibility significantly mediated the relationship between business intelligence and value added by the bank. The relevance of the TOE theory was proved; and the work strategically revealed that whereas investment in CSR significantly weakens the impact of business intelligence in value creation, banks size does not. So, it is important for bank operators to continue increasing their total assets while simulating on the optimum investment to be made in terms of corporate social responsibility. Far reaching recommendations are also given.
Keywords:
- Business intelligence
- computer hardware
- software investment
- value added
- bank size
- corporate social responsibility
How to Cite
AHLIJAH, Y. A. (2021). BUSINESS INTELLIGENCE AND VALUE ADDED: EMPIRICAL EVIDENCE FROM GCB BANK (GHANA) LIMITED. Asian Journal of Mathematics and Computer Research, 28(4), 1-19. Retrieved from https://ikppress.org/index.php/AJOMCOR/article/view/7135
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Wahua L. The mediating role of leverage on the effect of institutional corporate governance on banking sector stability. Being a Paper presented at the 1st International Conference on Management, Entrepreneurship and Business Education (ICMEBE), held at All Nations University College Ghana on 17 – 18 October, 2016; 2016.
Owusu A. Business intelligence systems and bank performance in Ghana: The balanced scorecard approach. Cogent Business & Management. 2017;4:1364056. Available:https://doi.org/10.1080/23311975.2017.1364056
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Sclater N, Webb M, Danson M. The future of data-driven decision-making; 2017.
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Wahua L. Corporate governance, financial soundness and economic development: empirical evidence from Malaysia, Indonesia, and Turkey. Text of paper presented at the 2nd Annual International Conference on Accounting and Finance, ICAF 2015, At Colombo, Sri Lanka; 2015.
Davenport TH. BI and organizational decisions. International Journal of Business Intelligence Research. 2010;1(1):1-12.
Popovič A, Turk T, Jaklič J. Conceptual model of business intelligence systems. Management Journal. 2015;15(1):5-30.
Lyke-Ho-Gland. Three measures for capturing the value of data-driven decisions; 2017.
Retrieved 25/06/2018 from https://searcherp.techtarget.com/tip/Three-measures-for-capturing-the-value-ofdata driven-decisions
Fink L, Yogev N, Even A. Business intelligence and organizational learning: an empirical investigation of value creation processes. Information and Management. 2017;54 (1):38-56
Brynjolfsson E, Hitt LM, Kim HH. Strength in numbers: How does data-driven decision-making affect firm performance?; 2011. Available at SSRN: http://ssrn.com/abstract=1819486
Rama J, Zhangb C, Koroniosc A. The implications of big data analytics on business intelligence: A qualitative study in China. Procedia Computer Science. 2016;86(1):221-226.
Lebied M. Why data driven decision making is your path to business success; 2017.
Retrieved 25/06/2021 from https://www.datapine.com/blog/data-driven-decision-making-in -businesses/
Micheni EM. Diffusion of big data and analytics in developing countries; 2015.
Corpus ID: 167872804. DOI:10.6084/M9.FIGSHARE.1517092.V1
Lautenbach P, Johnston K, Adeniran-Ogundipe T. Factors influencing business intelligence and analytics usage extent in South African organisations. South African Journal of Business Management. 2017;48(3):23–33
Namisiko P, Munialo C, Nyongesa S. Towards an optimization framework for e learning in developing countries: A case of private universities in Kenya. Journal of Computer Science and Information Technology. 2014;2 (2):131-148.
Kebande VR, Sigar KO, Odongo GY. Meta-modeling cloud computing architecture in distance learning. International Journal of Computer Science Issues. 2013;10(3):66-72.
Laisheng X, Zhengxia W. Cloud computing: a new business paradigm for e learning. Third International Conference on Measuring Technology and Mechatronics Automation. 2011;716-719.
Awa HO, Ukoha O, Emecheta BC. Integrating TAM and TOE frameworks and expanding their characteristic constructs for e-commerce adoption by SMEs. Informing Science & IT Education Conference (InSITE).Informing Science Institute; 2012.
Angeles R. Using the technology-organization-environment framework and Zuboff’s concepts for understanding environmental sustainability and RFID: two case studies. International Journal of Social, Education, Economics and Management Engineering. 2013;7(11):1599-1608.
Wahua L, Ahlijah Y. Business intelligence costs and firm performance: evidence from top selected ECOWAS’ banks. Journal of Economics and Trade. 2020;5(1):1-17.
Chen H, Chiang RHL, Storey VC. Business intelligence and analytics: from big data to big impact. MIS Q. 2012;36(4):1165-1188.
Idowu SA, Osofisan AO. Cloud computing and sustainable development in higher education. Journal of Emerging Trends in Computing and Information Sciences . 2012;3(11).
Jain A, Pandey US. Role of cloud computing in higher education. International Journal of Advanced Research in Computer Science and Software Engineering. 2013;3(7):966-972.
Oracle White Paper. Oracle’s cloud solutions for higher education and research; 2011.
Petrini M, Pozzebon M. Managing sustainability with the support of business intelligence: Integrating socio-environmental indicators and organizational context. Journal of Strategic Information System. 2009;18(2009):178-191.
Ahmad Z. Business intelligence for sustainable competitive advantage: the case of telecommunications companies in Malaysia. This thesis is presented for the Degree of Doctor of Philosophy of Curtin University of Technology; 2011.
Velnampy T. Value added, productivity and performance of few selected companies in SriLanka, Indian Journal of Commerce and Management. 2011;2(6). Hayes A. Valued added; 2020.
Retrieved November 3, 2020 from https://www.investopedia.com/terms/v/valueadded.asp
Přikrylová D. Business intelligence models for capturing and analysis of enterprise marketing data. Master thesis submitted to Masaryk University, Faculty of Informatics; 2016.
Oei MHH. Acceptance of operational business intelligence in organisations -developing a framework describing the context and powers at play involved in achieving OpBI acceptance in organizations; 2014. Corpus ID: 166647261
Amoako BT. The importance of business intelligence as a decision-making tool: case study electricity company of Ghana; 2013. Corpus ID: 166940121
Johansson S, Nilsson M. The intelligent business: an assessment of business intelligence practices in large Swedish organisations. Master Thesis submitted to Lund University; 2013.
Grover V, Teng JTC, Segars AH, Fiedler K. The influence of information technology diffusion and business process change on perceived productivity: The IS executive's perspective. Information & Management. 1998;34(3):141-159.
USC Libraries Organizing your social sciences research paper: Quantitative methods. The University of Southern Califonia Library; 2018. URL: https://libguides.usc.edu/writingguide
Kefas NN. An evaluation of corporate governance practices on board member selection and recruitment in Namibian state owned enterprises. A Research Project submitted for the degree of Masters in Leadership and Change Management in the Harold Pupkewitz Graduate School of Business, Polytechnic of Namibia; 2014.
Babbie ER. The Practice of Social Research. 12th ed. Belmont, CA: Wadsworth Cengage, Brians; 2010.
Ankomah ET. The impact of covid-19 pandemic on the overall performance of fidelity bank (Ghana) in 2020. Being a thesis submitted to Accra Business School in partial fulfillment of the requirements for the award of Master of Business Administration (MBA) by Accra Business School, Ghana; 2020.
Wahua L. Banks’ governance, country institutions, and capital adequacy in Nigeria. Asian Journal of Arts, Humanities and Social Studies. 2020;3(1):1-14.
Sabbour S, Lasi H, Tessin P. Business intelligence and strategic decision simulation. International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering. 2012;6(1):108-115
Roozitalab M, Sayadi MK. Investigating the effect of business intelligence on business value creation. Journal of Soft Computing and Decision Support System. 2018;5(5):43-48.
Wang J. Partial Correlation Coefficient. In: Dubitzky W., Wolkenhauer O., Cho KH., Yokota H. (eds) Encyclopedia of Systems Biology. Springer, New York, NY; 2013. Available:https://doi.org/10.1007/978-1-4419-9863-7_373
Laerd Statistics (n.d.). Partial correlation using SPSS statistics.
Retrieved 12/07/2021 fromhttps://statistics.laerd.com/spss-tutorials/partial-correlation-using-spssstatistics.php
Garson GD. Hierarchical linear modelling: guide and applications. Thousand Oaks, CA: Sage Publications, Inc; 2012.
Wahua L, Tsekpo S, Anyamele J. Governance and employee productivity of selected Nigerian banks: Does gender diversity matter? Asian Journal of Arts, Humanities and Social Studies. 2018;1(1):19-39.
Unicaf University (n.d.). Lecture note on quantitative and qualitative research methods (UU PhD 801). Cyprus: Unicaf University
Wahua L. The mediating role of leverage on the effect of institutional corporate governance on banking sector stability. Being a Paper presented at the 1st International Conference on Management, Entrepreneurship and Business Education (ICMEBE), held at All Nations University College Ghana on 17 – 18 October, 2016; 2016.
Owusu A. Business intelligence systems and bank performance in Ghana: The balanced scorecard approach. Cogent Business & Management. 2017;4:1364056. Available:https://doi.org/10.1080/23311975.2017.1364056
Kaplan RS, Norton DP. The balanced scorecard: Measures that drive performance. Harvard Business Review. 1992;70(1):71–79.
Sclater N, Webb M, Danson M. The future of data-driven decision-making; 2017.
Retrieved 25/6/2018 from https://www.jisc.ac.uk/reports/the-future-of-data-driven-decision-making
Wahua L. Corporate governance, financial soundness and economic development: empirical evidence from Malaysia, Indonesia, and Turkey. Text of paper presented at the 2nd Annual International Conference on Accounting and Finance, ICAF 2015, At Colombo, Sri Lanka; 2015.
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