IMPACT OF BUSINESS INTELLIGENCE ADOPTION ON ORGANIZATIONAL PERFORMANCE IN PAKISTANI SMES: THE MEDIATING ROLE OF DATA-DRIVEN DECISION-MAKING AND THE MODERATING ROLE OF TOP MANAGEMENT SUPPORT

Abstract

In today’s competitive business environment, small and medium enterprises (SMEs) increasingly rely on technological resources to enhance performance. This study investigates the impact of Business Intelligence (BI) adoption on organizational performance in Pakistani SMEs, emphasizing the mediating role of data-driven decision-making (DDD) and the moderating role of top management support (TMS). A quantitative, cross-sectional survey was conducted with 250 SME managers across manufacturing, IT, and service sectors. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results indicate that BI adoption positively influences DDD and organizational performance, with DDD partially mediating the relationship between BI and performance. Moreover, TMS strengthens the effect of BI adoption on DDD, highlighting the critical role of managerial support. These findings underscore the importance of integrating BI systems with evidence-based decision practices and leadership commitment to achieve sustainable performance improvements in SMEs. The study provides both theoretical insights and practical guidance for enhancing strategic decision-making and competitive advantage in emerging market contexts.