Antecedents of Business Intelligence Systems Adoption in MSMEs: A Quantitative Empirical Examination Utilizing Survey Instrumentation and Multivariate Data Analysis Techniques

Abstract

In the rapidly evolving digital economy, business intelligence systems (BIS) have become critical tools for enhancing strategic agility, operational efficiency, and data-driven decision-making. Micro, small, and medium-sized businesses (MSMEs) in India still face several obstacles, especially those resulting from strategy and technological uncertainties, even if major organizations have embraced BIS extensively. This study seeks to develop and empirically test a comprehensive framework that identifies the key determinants influencing BIS adoption among Indian MSMEs, with a special focus on these uncertainties. Employing a quantitative research design, primary data were collected through structured questionnaires from 120 professionals across various industry sectors. Analytical methods included descriptive statistics, chi-square tests, and multiple regression analysis to examine the relationship between BIS adoption and five independent variables: adoption process factors, strategic factors, organizational factors, technological factors, and environmental factors. The results reveal that four factors—adoption process complexity, strategic misalignment, lack of organizational readiness, and low technological compatibility negatively and significantly impact BIS adoption. Conversely, environmental factors were not found to have a statistically significant effect. These findings highlight the predominance of internal challenges over external conditions in shaping BIS adoption decisions under uncertainty. This research adds to the academic discussion by combining strategic and technological uncertainty into current BIS adoption models, creating a useful framework for Indian MSMEs. The study also provides actionable insights for policymakers, technology vendors, and MSME leaders to support more resilient and strategically aligned digital transformation initiatives.