Management and Economics | Open Access |

Strategic Integration of Business Intelligence and Cloud Analytics in SMEs: Drivers of Competitive Advantage and Organizational Performance

Dr. Elias Thorne , Department of Information Systems, Beacon University
Sarah J. Mbedu , School of Business Management, Horizon Institute of Technology

Abstract

Introduction: In an increasingly digitized global economy, the ability to leverage data is no longer a luxury for large corporations but a necessity for the survival and growth of Small and Medium-sized Enterprises (SMEs). Despite the proliferation of data generation, many SMEs struggle to translate raw information into actionable strategic assets. Objectives: This study aims to investigate the drivers and impacts of Business Intelligence (BI) and cloud analytics adoption within the SME sector. Specifically, it seeks to understand how BI capabilities enhance organizational performance, marketing effectiveness, and supply chain resilience, effectively creating a sustainable competitive advantage. Methods: The research utilizes a comprehensive theoretical synthesis, grounding its analysis in the Resource-Based View (RBV) of the firm and the Technology-Organization-Environment (TOE) framework. By synthesizing findings from diverse academic sources, the study constructs a holistic model of BI integration tailored to the constraints and opportunities unique to SMEs. Results: The analysis indicates that successful BI adoption in SMEs is contingent upon strong management support and the strategic utilization of cloud computing to mitigate infrastructure costs. Furthermore, the integration of BI is associated with significant improvements in marketing precision through cooperative learning and enhanced supply chain agility. Conclusion: The study concludes that for SMEs to achieve competitive parity or advantage, they must move beyond passive data collection to active, analytics-driven decision-making. Cloud-based platforms offer a viable pathway to access rich features without prohibitive capital expenditure, enabling SMEs to compete on analytics.

Keywords

Business Intelligence, SMEs, Competitive Advantage, Cloud Analytics

References

Adamala S, Cidrin L. 2011 Key Success Factors in Business Intelligence. Journal of Intelligence Studies in Business, Vol. 1(1).

Alaskar T, Efthimios P. Business Intelligence Capabilities and Implementation Strategies. International Journal of Global Business 2015; 8 (1): 34-45.

Ashrafi R, Murtaza M. Use and Impact of ICT on SMEs in Oman. The Electronic Journal Information Systems 2008; 11(3): 125-138.

Carlo V. Business Intelligence: Data Mining and Optimization for Decision Making. Politecnico di Milano, Italy; John Wiley & sons Ltd 2009.

Clark TD, Jones MC, Armstrong CP. The dynamic structure of management support systems: theory development, research focus, direction. MIS Quarterly, 2007; 31(3): 579–615.

Davenport TH. Competing on analytics. Harvard Business Review 2006.

Den Hamer P. The organization of Business Intelligence. The Hague: SDU Publishers 2005.

Farjami Y, Molanapour R. Business intelligence (from Idea to Practice), Ati-Negar Press, 1st Edition 2015.

Harding W. Business Intelligence crucial to making the right decision. Financial Executive 2003; 19(2): 49-50.

Huang ZX, Savita KS, Dan-yi L, Omar AH. The impact of business intelligence on the marketing with emphasis on cooperative learning: case-study on the insurance companies. Inf Process Manag. 2022. https://doi.org/10.1016/j.ipm.2021.102824.

Nguyen TUH. Information technology adoption in SMEs: an integrated framework. Int J Entrepreneurial Behav Res. 2009;15(2):162–86. https://doi.org/10.1108/13552550910944566/FULL/XML.

Żółtowski D. Business intelligence in balanced scorecard: bibliometric analysis. Procedia Comput Sci. 2022;207:4075–86. https://doi.org/10.1016/J.PROCS.2022.09.470.

Wang J, Omar AH, Alotaibi FM, Daradkeh YI, Althubiti SA. Business intelligence ability to enhance organizational performance and performance evaluation capabilities by improving data mining systems for competitive advantage. Inf Process Manag. 2022. https://doi.org/10.1016/j.ipm.2022.103075.

Luhn HP. A business intelligence system. IBM J Res Dev. 2010;2(4):314–9. https://doi.org/10.1147/RD.24.0314.

Tutunea MF, Rus RV. Business intelligence solutions for SME’s. Procedia Econ Finance. 2012;3:865–70. https://doi.org/10.1016/s2212-5671(12)00242-0.

Perdana A, Lee HH, Arisandi D, Koh SK. Accelerating data analytics adoption in small and mid-size enterprises: a Singapore context. Technol Soc. 2022. https://doi.org/10.1016/j.techsoc.2022.101966.

Kalaitzi D, Tsolakis N. Supply chain analytics adoption: determinants and impacts on organisational performance and competitive advantage. Int J Prod Econ. 2022. https://doi.org/10.1016/j.ijpe.2022.108466.

Antoniadis I, Tsiakiris T, Tsopogloy S. Business intelligence during times of crisis: adoption and usage of ERP systems by SMEs. Procedia Soc Behav Sci. 2015;175:299–307. https://doi.org/10.1016/j.sbspro.2015.01.1204.

Sin KY, Osman A, Salahuddin SN, Abdullah S, Lim YJ, Sim CL. Relative advantage and competitive pressure towards implementation of ecommerce: overview of small and medium enterprises (SMEs). Procedia Econ Finance. 2016;35:434–43. https://doi.org/10.1016/s2212-5671(16)00054-x.

Dip Bharatbhai Patel. (2025). Leveraging BI for Competitive Advantage: Case Studies from Tech Giants. Frontiers in Emerging Engineering & Technologies, 2(04), 15–21. Retrieved from https://irjernet.com/index.php/feet/article/view/166

Munir A, Lim MK, Knight L. Sustaining competitive advantage in SMEs. Procedia Soc Behav Sci. 2011;25:408–12. https://doi.org/10.1016/j.sbspro.2012.02.052.

Khayer A, Talukder MS, Bao Y, Hossain MN. Cloud computing adoption and its impact on SMEs’ performance for cloud supported operations: a dual-stage analytical approach. Technol Soc. 2020. https://doi.org/10.1016/j.techsoc.2019.101225.

Liu Y, Soroka A, Han L, Jian J, Tang M. Cloud-based big data analytics for customer insight-driven design innovation in SMEs. Int J Inf Manage. 2020. https://doi.org/10.1016/j.ijinfomgt.2019.11.002.

Article Statistics

Copyright License

Download Citations

How to Cite

Dr. Elias Thorne, & Sarah J. Mbedu. (2025). Strategic Integration of Business Intelligence and Cloud Analytics in SMEs: Drivers of Competitive Advantage and Organizational Performance. The American Journal of Management and Economics Innovations, 7(07), 135–143. Retrieved from https://theamericanjournals.com/index.php/tajmei/article/view/6982