The Effect of Business Intelligence Tools on Strategic Decision Making: The Case of Ethiopian Banks
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Date
2026-11-03
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o Addis Ababa University
Abstract
Today, banks use many technologies, and business intelligence (BI) is one of those tools that helps banks and many other industries to transform their raw data into information they can use to make their decisions. The main objective of this study is to examine the effect of BI tools on strategic decision-making and organizational performance in Ethiopian banks. To achieve this objective the researcher used quantitative research approach. Primary data were collected from employees of the five selected banks; Commercial Bank of Ethiopia, Enat Bank, Hibret Bank, Abay Bank, and Dashen Bank, using a five point Likert scale questionnaire. 192 response were returned from the distributed 200 questionnaires with 40 questionnaires to each bank. The data were analyzed using descriptive statistics, correlation analysis, multiple regression, and mediation analysis using SPSS version 27. The finding of the study revealed that system quality and BI usage were significantly and positively associated with decision-making quality, while information quality and service quality showed no significant direct association. The mediation analysis shows that BI maturity was significantly associated with the quality of decision-making. BI maturity partially mediates the relationship between system quality and decision-making quality, and fully mediates the relationships between information quality, service quality, BI usage, and decision-making quality. Furthermore, decision-making quality was found to be significantly associated with organizational performance
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Keywords
System quality, BI usage, BI maturity, Information quality, service quality, Decision-making quality, Organizational performanc