Applying and Extending the Theory of Effective Use in a Business Intelligence Context

Abstract

The benefits that organizations accrue from information systems depend on how effectively the systems are used. Yet despite the importance of knowing what it takes to use information systems effectively, little theory on the topic exists. One recent and largely untested exception is the theory of effective use (TEU). We report on a contextualization, extension, and test of TEU in the business intelligence (BI) context, a context of considerable importance in which researchers have called for such studies. We used a mixed methods, three-phase approach involving instrument development (n = 218), a two-wave cross-sectional survey (n = 437), and three sets of follow-up interviews (n = 33). The paper contributes by (1) showing how TEU can be contextualized, operationalized, and extended, (2) demonstrating that many of TEU’s predictions hold in the BI context while also revealing ways to improve the theory, and (3) offering practical insights that executives can draw on to improve the use of BI in their organizations.