Socio-Technical Factors Influencing Business Intelligence Adoption in SMEs

This study explores the major challenges that Small and Medium-sized Enterprises (SMEs) encounter when adopting Business Intelligence Systems (BIS), particularly in complex socio-political environments, such as Libya. It aims to understand how internal constraints, like limited financial capacity, resistance to change among management, and weak knowledge-sharing practices, combined with external socio-political factors, influence BIS adoption in developing economies. A cross-sectional survey approach was employed, targeting 297 SME owners and managers in Libya. Data was collected using a structured questionnaire and analyzed with SmartPLS to examine the relationships among key variables: facilitating conditions, information quality, perceived ease of adoption, perceived usefulness, and social influence. The findings highlight that social influence, especially from peers and industry experts, plays a crucial role in shaping SMEs’ adoption behavior. Moreover, the quality of information emerged as a significant determinant in the successful adoption of BIS. The study offers both practical and policy-level insights, suggesting that with the right support, BIS adoption can significantly enhance SMEs’ competitiveness, decision-making capabilities, and operational efficiency.