Enhancing Firm Performance Through Business Intelligence: Evidence from Vietnam

Abstract

PurposeThis study investigates the influence of Business Intelligence (BI) on firm performance in the presence of four main components of BI in companies in HCMC, Vietnam. The components are information search, information use, application information, and data security, which together mold BI performance and influence innovation, network learning, competitiveness, and then performance of the firm. Though the advantages of BI have been well documented worldwide, there is not sufficient practical research available on how BI capabilities influence firm performance in the context of developing economies, particularly in Vietnam. Innovation, network learning, and competitiveness are tested as the mediating variables through which BI is supposed to have a significant positive impact on firm performance. Methodology: The study uses a quantitative approach. A convenience sample was used to collect data from 397 employees working in HCMC-based enterprises who have awareness of or knowledge about BI systems. SmartPLS 4 used to run Structural Equation Modeling (PLS-SEM) for checking the hypothesized relationships. Findings: Results indicates that, information search, information use, information application, and data security positively affect BI performance, which enhances innovation and network learning, respectively. These, in turn, significantly enhance competitiveness and consequently firm performance. Implications for theory and practice: This study confirms the pathway from BI capabilities to organizational success and adds to the existing body of knowledge by developing a holistic model that incorporates BI, innovation, learning, and competitiveness within one single framework in an emerging market context. The strategic imperative of business intelligence in the performance of firms in emerging market contexts is therefore brought out. The results have direct implications for the business community and policymakers in HCMC. Originality and value: Enterprises should invest in secure and effective BI solutions, promote a learning and innovative culture, and utilize BI information to build competitive advantages and enhance performance.

Keywords: Business Intelligence, innovation, network learning, data security, firm performance