Impact of Business Intelligence Capabilities on the Competitive Performance of Islamic Banks in Jordan
Abstract
This study aimed to measure the impact of business intelligence capabilities on the competitive performance of Islamic banks in Jordan. The study population involved 240 senior- and middle-level managers of Islamic Banks in Jordan. The 202 managers responded to the distributed questionnaire from which 202 questionnaires were received, among which 14 were unsuitable for statistical analysis. Structural equation modeling (SEM) was used to test the hypothesized relationships. The importance of this study comes from the structure of the study variables that this study deals with the business intelligence variable as one of the renewable and evolving variables, as it allows organizations in general, and banks in particular, to manage a large amount of data, and turn it into the information of interest to the organization by following up on technological development. The study found a statistically significant effect of business intelligence capabilities represented by capabilities of business intelligence, structure, and culture of business intelligence on competitive performance. Based on the study results, the researchers recommend that managers and decision-makers more clearly interpret top management decisions to ensure the progress of the business.
Keywords: business intelligence, competitive performance, Islamic banks.
Full Text:
PDFReferences
AL-SHAWABKEH R., RUMMAN A.A., AL-ABBADI L., and ABU-RUMMAN, A. The intervening role of ambidexterity in the knowledge management project success connection. Problems and Perspectives in Management, 2020, 18(3): 56-66. http://dx.doi.org/10.21511/ppm.18(3).2020.05
AL-ZYADAT A., ALSARAIREH J., AL-HUSBAN D., AL-SHORMAN H., MOHAMMAD A., ALATHAMNEH F., and AL-HAWARY S. The effect of Industry 4.0 on sustainability of industrial organizations in Jordan. International Journal of Data and Network Science, 2022, 6(4): 1437-1446. http://dx.doi.org/10.5267/j.ijdns.2022.5.007
AITYASSINE F., SOUMADI M., ALDIABAT B., AL-SHORMAN H., AKOUR I., ALSHURIDEH M., and AL-HAWARY S. The effect of supply chain resilience on supply chain performance of chemical industrial companies. Uncertain Supply Chain Management, 2022, 10(4): 1271-1278. http://dx.doi.org/10.5267/j.uscm.2022.8.001
ALSHAWABKEH R., AL-AWAMLEH H., ALKHAWALDEH M., KANAAN R., AL-HAWARY S., MOHAMMAD A., and ALKHAWALDA R. The mediating role of supply chain management on the relationship between big data and supply chain performance using SCOR model. Uncertain Supply Chain Management, 2022, 10(3): 729-736. http://dx.doi.org/10.5267/j.uscm.2022.5.002
AL-AWAMLEH H., ALHALALMEH M., ALATYAT Z., SARAIREH S., AKOUR I., ALNEIMAT S., and AL-HAWARY S. The effect of green supply chain on sustainability: Evidence from the pharmaceutical industry. Uncertain Supply Chain Management, 2022, 10(4): 1261-1270. http://dx.doi.org/10.5267/j.uscm.2022.8.002
AL-NAWAFAH S., AL-SHORMAN H., AITYASSINE F., KHRISAT F., HUNITIE M., MOHAMMAD A., and AL-HAWARY S. The effect of supply chain management through social media on competitiveness of the private hospitals in Jordan. Uncertain Supply Chain Management, 2022, 10(3): 737-746. http://dx.doi.org/10.5267/j.uscm.2022.5.001
AL-KHAWALDAH R., AL-ZOUBI W., ALSHAER S., ALMARSHAD M., ALSHALABI F., ALTAHRAWI M., and AL-HAWARY S. Green supply chain management and competitive advantage: The mediating role of organizational ambidexterity. Uncertain Supply Chain Management, 2022, 10(3): 961-972. http://dx.doi.org/10.5267/j.uscm.2022.2.017
AL-LOZI M., ALMOMANI R.Z., and AL-HAWARY S. Impact of Talent Management on Achieving Organizational Excellence in Arab Potash Company in Jordan. Global Journal of Management and Business Research: An Administration and Management, 2017, 17(7): 15-25.
AL-HAWARY S., and AL-SYASNEH M. Impact of dynamic strategic capabilities on strategic entrepreneurship in presence of outsourcing of five stars hotels in Jordan. Business: Theory and Practice, 2020, 21(2): 578-587. https://doi.org/10.3846/btp.2020.11895
ALOLAYYAN M., AL-HAWARY S., MOHAMMAD A., and AL-NADY B. Banking Service Quality Provided by Commercial Banks and Customer Satisfaction. A structural Equation Modelling Approaches. International Journal of Productivity and Quality Management, 2018, 24(4): 543-565.
ALSHURIDEH M., AL-HAWARY S., BATAYNEH A., MOHAMMAD A., and AL-KURDI B. The Impact of Islamic Banks’ Service Quality Perception on Jordanian Customers Loyalty. Journal of Management Research, 2017, 9(2): 139-159. https://doi.org/10.5296/jmr.v9i2.10664
AL-HAWARY S., and OBIADAT A. Does mobile marketing affect customer loyalty in Jordan? International Journal of Business Excellence, 2021, 23(2): 226-250. https://doi.org/10.1504/IJBEX.2021.113446
AL-HAWARY S., and HARAHSHEH S. Factors Affecting Jordanian Consumer Loyalty Toward Cellular Phone Brand. International Journal of Economics and Business Research, 2014, 7(3): 349-375. https://doi.org/10.1504/IJEBR.2014.060372
ALTARIFI S., AL-HAWARY S., and AL SAKKAL M. Determinants of E-Shopping and its Effect on Consumer Purchasing Decision in Jordan. International Journal of Business and Social Science, 2015, 6(1): 81-92.
AYOUB G, DAMAJ A., EL-RASSY H., AL-HINDI M., and ZAYYAT R. Equilibrium and kinetic studies on adsorption of chromium (VI) onto pine-needle-generated activated carbon. SN Applied Sciences, 2019, 1(12): 1-13. https://doi.org/10.1007/s42452-019-1617-7
AL-HAWARY S., BATAYNEH A., MOHAMMAD A., and ALSARAHNI A. Supply chain flexibility aspects and their impact on customers satisfaction of pharmaceutical industry in Jordan. International Journal of Business Performance and Supply Chain Modelling, 2017, 9(4): 326-343.
AL-HAWARY S. The Roles of Perceived Quality, Trust, and Satisfaction in Predicting Brand Loyalty: The Empirical Research on Automobile Brands In Jordan Market. International Journal of Business Excellence, 2013, 6(6): 656-686. https://doi.org/10.1504/IJBEX.2013.056724
LEE V., FOO A., LEONG L., and OOI K. Can competitive advantage be achieved through knowledge management? A case study on SMEs. Expert Systems with Applications, 2016, 65: 136-151. https://doi.org/10.1016/j.eswa.2016.08.042
LU S., SUN Y., XU Y., GUO S., CAO A., and WAN L. Hollow‐Structured Electrode Materials: Self‐Templated Synthesis and Their Potential in Secondary Batteries. ChemNanoMat, 2020, 6(9): 1298-1314. https://doi.org/10.1002/cnma.202000272
AL-HAWARY S., MOHAMMAD A., AL-SYASNEH M., QANDAH M., and ALHAJRI T. Organisational learning capabilities of the commercial banks in Jordan: do electronic human resources management practices matter? International Journal of Learning and Intellectual Capital, 2020, 17(3): 242-266. https://doi.org/10.1504/IJLIC.2020.109927
RUMMAN A., AL-ABBADI L., and ALSHAWABKEH R. The impact of human resource development practices on employee engagement and performance in Jordanian family restaurants. Problems and Perspectives in Management, 2020, 18(1): 130-140. http://dx.doi.org/10.21511/ppm.18(1).2020.12
AL-ABBADI L., BADER D., MOHAMMAD A., AL-QURAN A., ALDAIHANI F., AL-HAWARY S., and ALATHAMNEH F. The effect of online consumer reviews on purchasing intention through product mental image. International Journal of Data and Network Science, 2022, 6(4): 1519-1530. http://dx.doi.org/10.5267/j.ijdns.2022.5.001
ALHALALMEH M., ALMOMANI H., ALTARIFI S., AL- QURAN A., MOHAMMAD A., and AL-HAWARY S. The nexus between Corporate Social Responsibility and Organizational Performance in Jordan: the mediating role of Organizational Commitment and Organizational Citizenship Behavior. Test Engineering and Management, 2020, 83: 6391-6410.
AL-ABBADI L. Impact of Human Resources Management Practices on Organizational Commitment of the Employees of Commercial Banks in Jordan. Global Journal of Management and Business Research, 2018, 18(4): 11-21.
METABIS A., and AL-HAWARY S. The Impact of Internal Marketing Practices on Services Quality of Commercial Banks in Jordan. International Journal of Services and Operations Management, 2013, 15(3): 313-337. https://doi.org/10.1504/IJSOM.2013.054445
BARNEY J.B., and WRIGHT P.M. On becoming a strategic partner: The role of human resources in gaining competitive advantage. Human Resource Management, 1998, 37(1): 31-46. https://doi.org/10.1002/(SICI)1099-050X(199821)37:1%3C31::AID-HRM4%3E3.0.CO;2-W
SUN N., MORRIS J., XU J., ZHU X., and XIE M. iCARE: A framework for big data-based banking customer analytics. IBM Journal of Research and Development, 2014, 58(5/6): 4-1. https://doi.org/10.1147/JRD.2014.2337118
VERCELLIS C. Business intelligence: data mining and optimization for decision making. John Wiley and Sons, UK, 2011.
WANG Y., KUNG L., and BYRD T. Big data analytics: Understanding its capabilities and potential benefits for healthcare organizations. Technological Forecasting and Social Change, 2018, 126: 3-13. https://doi.org/10.1016/j.techfore.2015.12.019
LARSON D., and CHANG V. A review and future direction of agile, business intelligence, analytics and data science. International Journal of Information Management, 2016, 36(5): 700-710. https://doi.org/10.1016/j.ijinfomgt.2016.04.013
CASEIRO N., and COELHO A. The influence of Business Intelligence capacity, network learning and innovativeness on startups performance. Journal of Innovation and Knowledge, 2019, 4(3): 139-145. https://doi.org/10.1016/j.jik.2018.03.009
RÖTHLIN F., SCHMIED H., and DIETSCHER C. Organizational capacities for health promotion implementation: results from an international hospital study. Health Promotion International, 2015, 30(2): 369-379. https://doi.org/10.1093/heapro/dat048
KORST L., AYDIN C., SIGNER J., and FINK A. Hospital readiness for health information exchange: Development of metrics associated with successful collaboration for quality improvement. International journal of Medical Informatics, 2011, 80(8): 178-188. https://doi.org/10.1016/j.ijmedinf.2011.01.010
RAVICHANDRAN T. Exploring the relationships between IT competence, innovation capacity and organizational agility. The Journal of Strategic Information Systems, 2018, 27(1): 22-42. https://doi.org/10.1016/j.jsis.2017.07.002
TEO H., WANG X., WEI K., SIA C., and LEE M. Organizational learning capacity and attitude toward complex technological innovations: An empirical study. Journal of the American Society for Information Science and Technology, 2005, 57(2): 264-279. https://doi.org/10.1002/asi.20275
ABOUASSI K., and JO S. Partnerships among Lebanese nonprofit organizations: Assessing the impact on human resource capacity. The American Review of Public Administration, 2017, 47(6): 687-698. https://doi.org/10.1177/0275074015613850
CARTON G., MCMILLAN C., and OVERALL J. Strategic capacities in US universities–the role of business schools as institutional builders. Problems and Perspectives in Management, 2018, 16(1): 186. http://dx.doi.org/10.21511/ppm.16(1).2018.18
BATRA S., SHARMA S., DIXIT M., and VOHRA N. Does strategic planning determine innovation in organizations? A study of Indian SME sector. Australian Journal of Management, 2018, 43(3): 493-513. https://doi.org/10.1177/0312896217734893
BINZAFRAH F., and TALEEDI F. The effect of business intelligence practices on job satisfaction in the Saudi Electricity Company in the Asir Region. Journal of Money and Business, 2022, 2(1): 107-131. https://doi.org/10.1108/JMB-03-2022-0011
SKYRIUS R., KATIN I., KAZIMIANEC M., NEMITKO S., RUMŠAS G., and ŽILINSKAS R. Factors driving business intelligence culture. Issues in Informing Science and Information Technology, 2016, 13: 171-186.
TSOY M., and STAPLES D. What are the critical success factors for agile analytics projects? Information Systems Management, 2021, 38(4): 324-341. https://doi.org/10.1080/10580530.2020.1818899
AUDZEYEVA A., and HUDSON R. How to get the most from a business intelligence application during the post implementation phase? Deep structure transformation at a UK retail bank. European Journal of Information Systems, 2016, 25(1): 29-46. https://doi.org/10.1057/ejis.2014.44
CHENG C., ZHONG H., and CAO L. Facilitating speed of internationalization: The roles of business intelligence and organizational agility. Journal of Business Research, 2020, 110: 95-103. https://doi.org/10.1016/j.jbusres.2020.01.003
RADENKOVIĆ M., LUKIĆ J., DESPOTOVIĆ-ZRAKIĆ M., LABUS A., and BOGDANOVIĆ Z. Harnessing business intelligence in smart grids: A case of the electricity market. Computers in Industry, 2018, 96: 40-53. https://doi.org/10.1016/j.compind.2018.01.006
AL-NADY B., AL-HAWARY S., and ALOLAYYAN M. The Role of Time, Communication, and Cost Management on Project Management Success: an Empirical Study on Sample of Construction Projects Customers in Makkah City, Kingdom of Saudi Arabia. International Journal of Services and Operations Management, 2016, 23(1): 76-112.
NIÑO H., NIÑO J., and ORTEGA R. Business intelligence governance framework in a university: Universidad de la costa case study. International Journal of Information Management, 2020, 50: 405-412. https://doi.org/10.1016/j.ijinfomgt.2018.11.012
AL-HAWARY S., and ALWAN A. Knowledge Management and Its Effect on Strategic Decisions of Jordanian Public Universities. Journal of Accounting-Business and Management, 2016, 23(2): 24-44.
FINK L., YOGEV N., and EVEN A. Business intelligence and organizational learning: An empirical investigation of value creation processes. Information and Management, 2017, 54(1): 38-56. https://doi.org/10.1016/j.im.2016.03.009
TORRES R., SIDOROVA A., and JONES M. Enabling firm performance through business intelligence and analytics: A dynamic capabilities perspective. Information and Management, 2018, 55(7): 822-839. https://doi.org/10.1016/j.im.2018.03.010
KIM J., SEOK B., CHOI H., JUNG S., and YU J. Sustainable management activities: a study on the relations between technology commercialization capabilities, sustainable competitive advantage, and business performance. Sustainability, 2020, 12(19): 7913. https://doi.org/10.3390/su12197913
SIGALAS C., and ECONOMOU V. Revisiting the concept of competitive advantage: Problems and fallacies arising from its conceptualization. Journal of Strategy and Management, 2013, 6(1): 61-80. https://doi.org/10.1108/17554251311296567
SIGALA M., and CHALKITI K. Investigating the exploitation of web 2.0 for knowledge management in the Greek tourism industry: An utilisation–importance analysis. Computers in Human Behavior, 2014, 30: 800-812. https://doi.org/10.1016/j.chb.2013.05.032
ALI A., SAHER A., and NAJWAN F. The Effect of Using Prezi Presentations in Science Teaching: Achievement and Attitudes. International Journal of Innovation, 2020, 14(5): 15.
AL-QURAN A., ALHALALMEH M., ELDAHAMSHEH M., MOHAMMAD A., HIJJAWI G., ALMOMANI H., and AL-HAWARY S. Determinants of the Green Purchase Intention in Jordan: The Moderating Effect of Environmental Concern. International Journal of Supply Chain Management, 2020, 9(5): 366-371.
AL-HAWARY S., and BATAYNEH A. A Study of the Strategic Performance of Shareholding Industrial Organizations in Jordan: Using Z- Score Model. International Journal of Business and Social Science, 2015, 6(11): 177-182.
ALLAHOW T., AL-HAWARY S., and ALDAIHANI F. Information Technology and Administrative Innovation of the Central Agency for Information Technology in Kuwait. Global Journal of Management and Business, 2018, 18(11): 1–16.
CHI M., ZHAO J., GEORGE J., LI Y., and ZHAI S. The influence of inter-firm IT governance strategies on relational performance: The moderation effect of information technology ambidexterity. International Journal of Information Management, 2017, 37(2): 43-53. https://doi.org/10.1016/j.ijinfomgt.2016.11.007
BACH M., JAKLIČ J., and VUGEC D. Understanding impact of business intelligence to organizational performance using cluster analysis: does culture matter. International Journal of Information Systems and Project Management, 2018, 6(3): 63-86. https://doi.org/10.12821/ijispm060304
AL-SHORMANA H., ALSHAWABKEH R., ALDAIHANI F., AITYASSINE F., MOHAMMAD A., and AL-HAWARY S. Drivers of E-training Intention to Use in the private universities in Jordan. International Journal of Data and Network Science, 2021, 5(4): 831-836. http://dx.doi.org/10.5267/j.ijdns.2021.x.002
ALOLAYYAN M., AL-RWAIDAN R., HAMADNEH S., AHMAD A., ALHAMAD A., AL-HAWARY S., and ALSHURIDEH M. The mediating role of operational Flexibility on the relationship between quality of health information technology and management capability. Uncertain Supply Chain Management, 2022, 10(4): 1131-1140. http://dx.doi.org/10.5267/j.uscm.2022.8.014
MARSH H., GUO J., DICKE T., PARKER P., and CRAVEN R. Confirmatory Factor Analysis (CFA), Exploratory Structural Equation Modeling (ESEM), and Set-ESEM: Optimal Balance Between Goodness of Fit and Parsimony. Multivariate Behavioral Research, 2020, 55(1), 102-119. https://doi.org/10.1080/00273171.2019.1602503
MOHAMMAD A., ALDMOUR R., and AL-HAWARY S. Drivers of online food delivery orientation. International Journal of Data and Network Science, 2022, 6(4): 1619-1624. http://dx.doi.org/10.5267/j.ijdns.2022.4.016
KHALAYLEH M., and AL-HAWARY S. The impact of digital content of marketing mix on marketing performance: An experimental study at five-star hotels in Jordan. International Journal of Data and Network Science, 2022, 6(4): 1023-1032. http://dx.doi.org/10.5267/j.ijdns.2022.8.008
SARAIREH S., OWAIS W., ABBAS N., MATAR G., ARYAN L., AL-RAHAMNEH A., and AL-HAWARY S. The effect of corporate social responsibility and board diversity on earnings management: Evidence from Jordanian listed firms. Uncertain Supply Chain Management, 2022, 10(4): 1253-1260. http://dx.doi.org/10.5267/j.uscm.2022.8.003
CHEAH J., SARSTEDT M., RINGLE C., RAMAYAH T., and TING H. Convergent validity assessment of formatively measured constructs in PLS-SEM: On using single-item versus multi-item measures in redundancy analyses. International Journal of Contemporary Hospitality Management, 2018, 30(11): 3192-3210. https://doi.org/10.1108/IJCHM-10-2017-0649
AFTHANORHAN A., GHAZALI P., and RASHID N. Discriminant Validity: A Comparison of CBSEM and Consistent PLS using FornellandLarcker and HTMT Approaches. Journal of Physics: Conference Series, 2021, 1874(1): 012085. https://doi.org/10.1088/1742-6596/1874/1/012085
VASKE J., BEAMAN J., and SPONARSKI C. Rethinking Internal Consistency in Cronbach’s Alpha. Leisure Sciences, 2017, 39(2): 163-173. https://doi.org/10.1080/01490400.2015.1127189
WATKINS M. The reliability of multidimensional neuropsychological measures: From alpha to omega. The Clinical Neuropsychologist, 2017, 31(6-7): 1113-1126. https://doi.org/10.1080/13854046.2017.1317364
GU H., WEN Z., and FAN X. Structural validity of the Machiavellian Personality Scale: A bifactor exploratory structural equation modeling approach. Personality and Individual Differences, 2017, 105: 116-123. https://doi.org/10.1016/j.paid.2016.09.042
JIN Y. A note on the cutoff values of alternative fit indices to evaluate measurement invariance for ESEM models. International Journal of Behavioral Development, 2020, 44(2): 166-174. https://doi.org/10.1177/0165025419866911
SENAVIRATNA N., and COORAY T. Diagnosing Multicollinearity of Logistic Regression Model. Asian Journal of Probability and Statistics, 2019, 5(2): 1-9. https://doi.org/10.9734/ajpas/2019/v5i230132
THOMPSON C., KIM R., ALOE A., and BECKER B. Extracting the Variance Inflation Factor and Other Multicollinearity Diagnostics from Typical Regression Results. Basic and Applied Social Psychology, 2017, 39(2): 81-90. https://doi.org/10.1080/01973533.2016.1277529
CIVELEK M. Essentials of Structural Equation Modeling. Zea Books, 2018.
Refbacks
- There are currently no refbacks.
