Impact of Business Intelligence Practices on Organisational Performance: The Mediating Role of Organisational Agility

Abstract

Financial institutions are increasingly relying on Business Intelligence (BI) solutions in today's fast-paced corporate world to enhance decision-making, operational efficiency, and competitive advantage. This study investigates the impact of BI practices on organisational performance, with organisational agility serving as a mediating variable, in financial institutions operating in the Batticaloa District of Sri Lanka. Limited empirical evidence exists regarding the mechanisms through which BI practices affect organisational performance, particularly in developing economies. A structured questionnaire was used to collect primary data from managerial-level staff at selected financial institutions using stratified sampling technique as part of a quantitative research approach. To investigate the suggested associations and mediation effects, the collected data were examined using appropriate statistical techniques, such as correlation and multiple regression analyses. The findings reveal that BI practices and organisational agility are significantly and positively correlated with organisational performance. Furthermore, organisational agility was found to partially mediate the relationship between BI practices and organisational performance, showing that organizations with higher levels of agility can transform BI insights into improved outcomes more effectively. The research emphasises the importance of investing in advanced BI systems and developing agile organisational capabilities to enhance financial and operational performance. The findings propose practical implications for managers and policymakers looking to improve organisational effectiveness through data-driven strategies.