Adoption of business intelligence by micro-small apparel businesses in the great eThekwini region

Abstract

The increasing pressure of costs in the Small Medium Micro Enterprise (SMME) sector produces the need to continually improve management efficiency. This requires the use of different approaches, methods and tools. One method is the use of a digital business analytical tools, such as those related to business intelligence (BI). BI assists businesses with the analysis of information to make better decisions to improve business performance. The objective of this study was to determine factors influencing the adoption of BI in micro-small apparel retail businesses in the eThekwini region. This was a cross sectional study conducted among 161 apparel business owners who were selected using non-probability purposive sampling. Data was collected using an anonymous questionnaire. Multiple linear regression was conducted to determine the influencing factors for business intelligence adoption. The conceptual framework used for this study was the technology-organisation-environment (TOE) framework. The results from this study found that the factors that significantly influence the adoption of BI in micro-small apparel businesses in the eThekwini region are perceived relative advantage, organisational readiness, management support and organisational data environment. The results of this study have also indicated that there are not sufficient government incentives offered for technological innovations such as BI , particularly for micro-small businesses. While there are a number of government funding opportunities and business support mechanisms, the respondents indicated that government incentives do not support the adoption of BI and all the factors needed to be considered during the adoption process. The adoption and use of BI in the South African context could contribute greatly to the country’s GDP and generally create growth opportunities for South African SMMEs in the global market. Government support for such an initiative would help decrease the high unemployment rate in South Africa as more jobs would be created around the country through these projects.