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Title: The impact of business intelligence systems on profitability and risks of firms
Authors: Yiu, LMD
Yeung, ACL 
Cheng, TCE 
Issue Date: 2021
Source: International journal of production research, 2021, v. 59, no. 13, p. 3951-3974
Abstract: Researchers in the field of operations management (OM) have long advocated fact-based decision-making. The use of business intelligence (BI) systems represents a great opportunity for manufacturers to improve profitability and reduce firm risks. However, the actual business value of BI systems has remained highly controversial because integrating BI systems into production and manufacturing operations is difficult. In particular, the informational sources and operational use of BI systems require substantial internal support from employees and institutionalised incorporation of BI into operations. Using a sample of 278 manufacturing firms in the US that had used BI systems from 2005 to 2014, we examine the impact of BI systems on firms’ profitability and risks. We show that firms improve their profitability and reduce risks in profit returns directly after the operational use of BI systems. Firms with superior employee relationships and higher process institutionalisation (i.e. firms that are ISO 9000 certified) benefit more from the operational use of BI systems. We provide a resource orchestration perspective (ROP) of the resource-based view (RBV) of firms for the competitive advantage derived from the operational use of BI systems; and we ascertain the circumstances in which manufacturers are more likely to benefit from BI systems.
Keywords: Business intelligence systems
Firm risks
Process institutionalisation
Publisher: Taylor & Francis
Journal: International journal of production research 
ISSN: 0020-7543
EISSN: 1366-588X
DOI: 10.1080/00207543.2020.1756506
Rights: © 2020 Informa UK Limited, trading as Taylor & Francis Group
This is an Accepted Manuscript of an article published by Taylor & Francis in International journal of production research on 4 May 2020 (Published online), available online:
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