The Effect of Business Intelligence (BI) on Organizational Agility and Innovation Using SEM

In recent years, Business Intelligence (BI) has become an obvious necessityand an important element for the survival of any business. This study aimed to investigate theeffect of BI on organizational agility and innovation.

This research is quantitative in terms of paradigm and descriptive-correlational in termsof the type of study. The population of this study was the IT experts in Kermanshah hospitals (375people); they were selected using total number method, but after distributing the questionnairesamong all of them, only 97 complete questionnaires were collected and used for data analysis.Data were collected by a researcher-made questionnaire. Data analysis was performed by PartialLeast Squares (PLS) structural equation modeling using Smart PLS software.

There was a positive and significant relationship between BI and organizationalagility and innovation in hospitals. In other words, if BI is used in a hospital, it will lead toorganizational agility, which will increase the ability of hospitals to respond to environmentalchanges and turn environmental threats into opportunities. Further, BI leads to moreorganizational innovation, i.e. the hospital will be able to deliver innovative services to thetarget community and gain more market share than its competitors.

Since hospitals are facing increasing pressure to find new ways to competeand deal with increased operating overhead costs, they need to establish BI to cope withthese changes, which will reduce the costs, increase the speed and efficiency, enhance theeffectiveness, and gain competitive advantage by promoting organizational agility andinnovation.