Business Intelligence and Absorptive Capacity Impact on Firm Performance in Manufacturing Companies: A Systematic Literature Review

Abstract

With the aid of technology, business intelligence manages data to generate innovative ideas. A corporation’s absorptive capacity, meanwhile, is its potential to absorb resources to acquire sophisticated commercial activities. This study aimed to determine whether business intelligence and absorptive ability had any real effects on how effectively a firm performed. It also looked at whether the manufacturing industry may gain from implementing both. The study aims to provide evidence that Business Intelligence and Absorptive Capacity work best together and should be applied in manufacturing firms, especially those in Indonesia. This investigation was carried out using a Systematic Literature Review (SLR) of 26 sources. The study’s findings point to the benefit of applying business intelligence and absorptive capacity to firm performance, namely an improved capacity for innovation and decision-making that can result in more advantages from both an operational and economic perspective. This study has shed fresh light on the relationship between business intelligence and absorptive capacity and how these concepts are used in the Indonesian manufacturing industry.