Business Intelligence in Supply Chain Management : A Systematic Literature Review

Abstract

This study addresses the growing interest of utilizing business intelligence (BI) systems in organizational decision making. Due to recent global crises’ and increased competition, the role of supply chain management as an enabler for competitive performance is highlighted. The disruptions brought by COVID-19 and the war in Ukraine to global supply chains also showed their vulnerability to sudden shocks. Simultaneously, technologies such as RFID trackcing enable firms to collect more data from their supply chains. Previous research has conceptualized BI as a dynamic capability, allowing firms to harness data to make them better suited to operate in rapidly changing markets. Despite the potential of BI, there is a lack of understanding of the mechanisms through which this potential can be achieved in practice. Drawing from the dynamic capabilities framework, this study posits that dynamic capabilities operate with organizational capabilities to create new and enhance existing capabilities. Thus, understanding the mechanisms of interaction between BI and organizational capabilities is essential for unlocking the potential value of BI. Thus, this study seeks to answer the research question “How does BI impact organizational capabilities and how does this interaction affect SCM?”.

This research question is answered by systematically reviewing 121 studies regarding the use of BI in SCM context. The study has three research objectives. First, to identify the antecedent organizational capabilities required for BI use in SCM context. Second, to understand the mechanisms through which BI interacts with organizational capabilities. And third, identifying the resulting capabilities in practice.

The selection of studies show a significant proportion of studies being quantitative studies focusing on manufacturing organizations. The review finds that utilization of BI in SCM context requires a diverse set of organizational capabilities. These include technical, managerial, integration, and knowledge management capabilities. The findings also show that BI interacts with organizational capabilities by enhancing information processing and sharing capabilities. These result in improved supply chain agility, resilience and innovation capabilities. These findings are discussed in practical context utilizing the SCOR framework from SCM literature. Agility was found to have the most profound impact on most SCOR processes, while the impact of resilience and innovation were focused on fewer SCOR processes. Finally, the study concludes by providing managerial implications and future research opportunities. The study highlights that managers should not consider BI as just a technical tool. The successful utilization of BI requires active effort and commitment from the entire organization and represents a form of organizational change. Future research could address the dominance of quantitative studies on the field, and the impact of artificial intelligence on BI use.