APTISI Transactions on Management (ATM)

Vol. 8, No. 1, 2024, pp. 40~48

E-ISSN: 2622-6804 P-ISSN: 2622-6812, DOI: 10.33050  40

Unlocking Organizational Potential: Assessing the Impact of

Technology through SmartPLS in Advancing Management
Excellence
Eiser Aaron Beldiq1, Brigitta Callula2, Natasya Aprila Yusuf 3 , Achani Rahmania Az Zahra 4
1
Dapartment of Business Management, Rey Incorporation, USA
2
Dapartment of Digital Business, Eduaward Incorporation, UK
3,4
Faculty of Science and Technology, University of Raharja, Indonesia
[email protected], [email protected], [email protected],
[email protected]

Article Info ABSTRACT

Article history: This study aims to explore the organizational potential in facing the impact of
implementing Business Intelligence System (BIS) technology using Partial
Received 12, 18, 2023
Least Squares Structural Equation Modeling (SmartPLS) as the analytical
Revised 01, 02, 2024
tool. We conducted research on several organizations that have adopted
Accepted 01, 05, 2024
Business Intelligence (BIS) with the goal of enhancing managerial excellence.
Data collection was carried out online, involving 150 respondents from 5
Keywords: organizations in Indonesia, the majority of whom are already familiar with
and have implemented BIS technology in their organizations. We evaluated
Technology Adoption
the impact of this technology, particularly on organizational performance,
Business Intelligence System
decision-making processes, and business process optimization. This research
Organizational Strategy
Smart-PLS not only synthesizes knowledge from relevant literature but also provides a
holistic understanding of the impact of Business Intelligence System (BIS)
technology, specifically through its success within an organizational context.
The findings of this research are expected to offer a profound insight into how
the adoption of BIS can transform organizational paradigms in managing
information, deciding strategies, and improving operational efficiency.

This is an open access article under the CC BY-SA license.

Corresponding Author:
Natasya Aprila Yusuf
Faculty of Science and Technology, University of Raharja, Indonesia
Email: [email protected]

1. INTRODUCTION
In the face of the continually evolving digital transformation era, organizations are not only expected
to adapt but also to understand, adopt, and optimize technology to enhance their performance[1]. The dynamic
nature of the market compels organizations to innovate and adopt the latest technology to improve performance,
adaptability, and even energy efficiency[2]. This research is conducted with the primary goal of exploring an
organization's potential in responding to the impacts of cutting-edge technology[3].
One technology that has captured the attention of many organizations is Business Intelligence System
(BIS)[4]. BIS is not just a data analysis tool but also a key to facing the complexity of business dynamics. The
adoption of BIS technology is directed towards enhancing managerial excellence, enabling organizations to
respond to market changes more quickly and effectively[5].

Journal homepage: https://ijc.ilearning.co/index.php/ATM/index

APTISI Transactions on Management (ATM)  41

This research not only aims to synthesize knowledge from relevant literature but also to provide a
holistic understanding of the impact of Business Intelligence System (BIS) technology, especially in the
organizational context[6]. Focusing on aspects such as information management, strategic decision-making,
and operational efficiency improvement, the research results are expected to provide profound insights into
how BIS adoption can shape organizational paradigms, propelling them forward in addressing the demands of
change and modern business complexity[7]
It is important to realize that BIS integration is not just a technological transformation but also reflects
the cultural and strategic evolution of organizations[8]. Therefore, this research will not only provide insights
into the benefits of this technology but also explore how organizations can optimize their potential, respond to
challenges, and seize opportunities in this digital era[9].

Therefore, this study poses the following research questions:

RQ1: What is the impact of technology adoption, specifically Business Intelligence Systems (BIS), on
various dimensions of organizational performance?
RQ2: How does the utilization of technology, particularly through systems like BIS, contribute to enhancing
the quality of decision-making within organizations?
RQ3: In what ways does the adoption of technology, particularly Business Intelligence Systems (BIS),
influence and contribute to the optimization of specific business processes?
RQ4: Can a positive correlation be identified between the quality of organizational decision-making and the
optimization of business processes, and how is this correlation affected by the adoption of technology,
specifically through systems like BIS?

2. LITERATURE REVIEW

Figure 1. Research Framework

2.1 Technology Adoption and Organizational Performance

In the contemporary business landscape, the role of information technology and information systems
has become pivotal in bolstering organizational performance[10]. The primary focus in endeavors to enhance
organizational competitiveness and efficiency lies in the adoption of technology, particularly Business
Intelligence Systems (BIS)[11]. BIS not only assumes a role in analysis but also encompasses the process of
collecting and presenting data to underpin decision-making[12].

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42  E-ISSN: 2622-6804 P-ISSN: 2622-6812

Business Intelligence Systems (BIS) go beyond providing insightful analysis, they also streamline the
process of collecting and presenting data, supporting well-informed decision-making[13]. Organizational
performance indicators, such as the efficiency of the decision-making process and productivity levels, serve as
benchmarks for evaluating the positive impact of information technology and information systems[14]. The
adoption of BIS technology transcends being merely a technological tool, it is a pivotal element in an
organization's strategy to sustain competitiveness. Thoughtful utilization of information technology can foster
an environment in which organizations can continually evolve and adapt to market changes[15].
H1: The adoption of technology, particularly Business Intelligence Systems (BIS), demonstrates a positive
correlation with organizational performance

2.2 Technology Adoption dan Decision Making

The integration of technology within an organization or company provides valuable insights into the
intricate connection between technology adoption and the decision-making process[16]. Numerous studies
underscore the direct impact of technology adoption on how organizations handle information and make
strategic decisions. Technology, especially through systems like Business Intelligence Systems (BIS), has
demonstrated its significant role in streamlining the processes of data collection, analysis, and presentation.
Embracing such technology establishes an environment where organizations can access more precise and
expedited information, thereby facilitating more informed and timely decision-making[17].
The significance of the correlation between technology and decision-making becomes evident in the shift
from traditional decision-making methods to a data-driven approach. Business Intelligence systems empower
organizations to dissect data more effectively, recognize trends, and derive insights that bolster intelligent
decision-making processes[18]. Moreover, various factors influence technology adoption and its impact on an
organization's capacity to make effective decisions. Elements such as organizational culture, structural setup,
and the level of management support often act as crucial moderators in the relationship between technology
adoption and the decision-making process[19].
In summary, this research emphasizes that technology adoption not only enhances operational efficiency
but also profoundly shapes the dynamics of decision-making within organizations[20]. A comprehensive
understanding of the interplay between technology and decision-making is crucial for organizations to leverage
the full potential of their information technology, enabling them to attain strategic goals and remain competitive
in an ever-evolving marketplace.
H2: Technology adoption, particularly through systems such as BIS, has a positive relationship with the quality
of decision making.

2.3 Technology Adoption and Optimization of Business Processes

This research underscores the pivotal role of technology application, particularly through systems like
Business Intelligence Systems (BIS), in enhancing organizational efficiency, productivity, and adaptability to
market changes[21]. When employed judiciously, information technology can bring about substantial
transformations in the way organizations strategize, execute, and oversee their business processes. For instance,
Business Intelligence Systems not only offer comprehensive analysis of organizational data but also facilitate
seamless data integration, expedite workflows, and foster more informed decision-making[22].
Moreover, this study demonstrates that technology application can influence cultural dynamics and drive
organizational changes that bolster the optimization of business processes. This transformative process may
encompass shifts in employee attitudes toward technology, heightened collaboration across departments, and
more strategic utilization of data for decision-making[23].
Furthermore, various studies underscore the significance of a thorough understanding of factors
influencing technology adoption and their pivotal role in optimizing business processes. Elements such as
supportive leadership, employee engagement, and the alignment of technology with organizational needs
emerge as critical factors for successful technology implementation. This illustrates that technology application
not only serves as a tool for refining business processes but also functions as a catalyst for broader
organizational transformation. A nuanced comprehension of the interplay between technology and business

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APTISI Transactions on Management (ATM)  43

process optimization empowers organizations to unlock the full potential of their information technology, gain
a competitive edge, and swiftly adapt to evolving market demands.
H3: The adoption of technology, particularly through systems such as Business Intelligence Systems (BIS),
exhibits a positive correlation with the optimization of business processes.

2.4 Decision Making and Optimization of Business Processes

Optimizing business processes is not merely a procedural step, it holds a pivotal role in shaping the
success of an organization. A profound comprehension of several key facets emerges as the linchpin in
navigating the complexities of the contemporary business landscape[24].
Primarily, within the realm of decision-making, this literature accentuates diverse theories and models
that underpin decision-making processes at both individual and organizational levels. Business decisions
encompass resource allocation, strategic formulation, and responses to market changes. This study proves
instrumental in identifying factors influencing business decisions and formulating strategies to enhance
decision-making quality[25].
Furthermore, this research zeroes in on the optimization of business processes, delving into how an
organization can bolster efficiency, productivity, and responsiveness through the refinement and adjustment of
operational processes. The incorporation of technology, particularly Business Information Systems (BIS), in
automation and data analysis becomes an integral facet of endeavors aimed at enhancing business processes.
With a comprehensive approach, this literature investigates how intelligent decision-making contributes
to augmenting the efficiency of business processes[26]. Decisions rooted in data analysis and a profound grasp
of company operations become instrumental in attaining optimization objectives. In this context, artificial
intelligence and predictive analytics technologies take center stage, offering invaluable insights to facilitate
improved decision-making. Moreover, the research may encompass case studies featuring organizations
successfully integrating intelligent decision-making with business process optimization. An analysis of best
practices and lessons gleaned from innovative implementations imparts practical insights for other
organizations aspiring to enhance their performance.
Through an intricate exposition of theories, models, best practices, and cutting-edge technology, this
research provides a comprehensive perspective on strategies that can empower organizations to achieve success
through sound decision-making and optimal operational efficiency.
H4: There exists a positive correlation between the quality of organizational decision-making and business
process optimization.

2.5 Organizational Performance and Optimization of Business Processes

Organizational performance, serving as an indicator of the degree to which company objectives are
realized, is intricately linked to the optimization of business processes within the organization. As the
intricacies of the business landscape intensify, the optimization of business processes emerges as a pivotal
factor for enhancing operational efficiency, curtailing costs, and ensuring the attainment of company targets.
The streamlined optimization of business processes can yield a positive impact across various dimensions,
encompassing heightened employee productivity, elevated product or service quality, and, ultimately,
augmented customer satisfaction. Consequently, an in-depth comprehension of the nexus between
organizational performance and the optimization of business processes proves indispensable for corporate
leaders striving to attain operational excellence and foster long-term sustainability.
Within the scope of this research, it is posited that a positive correlation exists between the level of
business process optimization and organizational performance. This postulation implies that as a company
adeptly manages and optimizes its business processes, the overall organizational performance is likely to
ascend. Furthermore, the hypothesis asserts that companies undertaking business process optimization will
demonstrate superior organizational performance compared to their counterparts that have not embraced this
practice. Through the empirical testing of this hypothesis via research and the scrutiny of pertinent data, we
aspire to unearth profound insights into how the interplay between business process optimization and
organizational performance can significantly shape the competitive edge and sustainability of a company.
H5: There exists a positive correlation between the degree of Optimization of Business Processes and
Organizational Performance.

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44  E-ISSN: 2622-6804 P-ISSN: 2622-6812

2.6 SmartPLS (Smart Partial Least Square)

SmartPLS, an abbreviation for Smart Partial Least Squares, is a statistical analysis method employed in
empirical research to examine and assess relationships among variables within structural models. Through the
integration of the Business Intelligence System via SmartPLS, this methodology facilitates the identification
of relationships and impacts among these variables, while also streamlining the validation of resulting
hypotheses. This analytical approach aids in precisely identifying the factors with the most significant
influence.
The implementation of SmartPLS in this research provides a profound understanding of how Business
Intelligence Systems influence the optimization of business processes and contribute to organizational success.
The analysis conducted with SmartPLS enhances comprehension of the intricate relationships among these
factors, assisting in pinpointing key aspects that can be optimized to enhance the operational and strategic
performance of an organization.

3. RESEARCH METHOD
This research employs a quantitative approach and specifically focuses on the analysis of
organizations that have implemented technology, particularly Business Intelligence Systems (BIS), to enhance
managerial excellence. Data collection was conducted online, involving 150 respondents from five
organizations in Indonesia. The majority of respondents are acquainted with and have integrated BIS
technology into their organizational operations. Data were gathered through a structured questionnaire,
utilizing a scoring scale ranging from 1 to 5.
The primary objective of this research is to assess the impact of technology adoption on Business
Process Optimization. Utilizing the Smart PLS analysis method, this research empirically examines the
relationship between variables, such as Technology Adoption, which gauges the extent to which an
organization has adopted and integrated technology, particularly BIS, into its operational activities. This
analysis aims to predict the repercussions of technology adoption, ultimately influencing organizational
performance in both the aspects of Organizational Performance and Decision Making

Figure 2. Conceptual Model

3.1 Measurement Model

To evaluate the reliability of the construct within the scope of this research, two evaluative
experiments were undertaken. This assessment is grounded in two primary validity types convergent validity
and discriminant validity. Convergent validity is tailored to verify that the observed variables exhibit a
substantial correlation with the associated research object. The purpose of this validity examination is to affirm
the extent of the relationship between these variables within the construct framework under evaluation.
Furthermore, discriminant validity tests were executed to substantiate that items originating from distinct
variables did not demonstrate a noteworthy relationship with each other. In essence, this test aims to ensure
that the variables under scrutiny genuinely represent disparate dimensions or concepts and do not merely mirror
a single analogous aspect.

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APTISI Transactions on Management (ATM)  45

The initial action undertaken by the researcher involved conducting measurements on the model to assess
its validity and reliability. The Average Variance Extracted (AVE) value serves as an indicator to gauge the
degree to which an indicator correlates positively with other indicators, and it is deemed satisfactory if it
surpasses > 0.5. Furthermore, a loading factor value is deemed acceptable if it exceeds > 0.7. While an AVE
value above 0.5 is deemed adequate, a value ranging from 0.5 to 0.7 is still considered suitable for further
investigation.

Table 1. Construct Reliability and Validity

Cronbach's alpha Composite Composite Average variance
reliability (rho_a) reliability (rho_c) extracted (AVE)
Decision Making 0.850 0.852 0.909 0.769

Optimization of 0.861 0.872 0.915 0.783

Business Processes
Organizational 0.838 0.839 0.903 0.756
Performance
Technology 0.887 0.889 0.930 0.816
Adoption

The Average Variance Extracted (AVE) values obtained in this study were 0.769, 0.783, 0.756, and
0.816. Each of these values surpasses the commonly accepted AVE threshold of 0.5. These findings affirm that
all the constructs under examination have effectively demonstrated convergent validity, implying that the
utilized indicators exhibit strong and consistent correlations with one another.

3.2 Discriminant Validity

Table 2. presents the outcomes of the discriminant validity assessment employing the Fornell-Larcker
Criteria. To satisfy this criterion, Fornell-Larcker stipulates that the square root of each AVE component must
exceed its highest correlation with any other construct.

Table 2. Discriminant Validity

Decision Making Optimization of Organizational Technology
Business Processes Performance Adoption
Decision Making 0.877

Optimization of 0.829 0.885

Business Processes
Organizational 0.823 0.827 0.869
Performance
Technology 0.786 0.853 0.806 0.903
Adoption

An examination of the research findings presented in Table 2. suggests that the correlation within each latent
construct surpasses the correlation between latent constructs that stem from different constructs. Consequently,
it can be inferred that each variable in this study holds a high level of significance regarding accuracy and
validity. In other words, all constructs adhere to the established standards.
The analysis focused on four constructs: Decision Making (DM), Optimization of Business Processes
(OBP), Organizational Performance (OP), and Technology Adoption (TA). The findings indicate that the
Average Variance Extracted (AVE) value for each construct surpasses the correlation between the respective
constructs. Specifically, the AVE for Decision Making is 0.877, exceeding correlations Optimization of
Business Processes (0.829), Organizational Performance (0.823), and Technology Adoption (0.786). Similarly,
the AVE for Optimization of Business Processes is 0.885, surpassing correlations with Organizational
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Performance (0.827) and Technology Adoption (0.853). Additionally, the AVE for Organizational
Performance is 0.869, correlating with Technology Adoption (0.806). Lastly, the AVE for Technology
Adoption is 0.903, indicating a higher value than its correlation with Decision Making (0.786), Business
Process Optimization (0.853), and Organizational Performance (0.806). These results demonstrate that each
variable effectively captures a significant amount of distinct variation from one another.

3.3 Outer Model Evaluation

Table. 3 R-Square
R-square

Decision Making 0.618

Optimization of Business Processes 0.804

Organizational Performance 0.649

Table 3. presents the R-square values for three distinct groups, Decision Making (0.618), indicating
approximately 61.8%; Optimization of Business Processes (0.804), achieving 80.4%; and Organizational
Performance (0.649), representing roughly 64.9%. These R-square figures underscore the efficacy of the-
regression model in elucidating the factors influencing Readiness to Change and Job Engagement within the
context of this study.
Table. 4 Statistical Hypothesis Testing Results
Original T statistics P values Decision
sample (O) (|O/STDEV|)
Decision Making -> Optimization of 0.273 2.515 0.012 Supported
Business Processes
Organizational Performance -> 0.245 2.287 0.022 Supported
Optimization of Business Processes
Technology Adoption -> Decision 0.786 11.356 0.000 Supported
Making
Technology Adoption -> 0.442 4.476 0.000 Supported
Optimization of Business Processes
Technology Adoption -> 0.806 14.995 0.000 Supported
Organizational Performance

Table 4. reveals that each of the examined relationships (DM > OBP, OP > OBP, TA > DM, TA > OBP,
and TA > OP) demonstrates statistical significance, as evidenced by the initial sample values (falling between
0.245 to 0.806), elevated T statistics (ranging from 2.287 to 14.995), and P values of 0.022, 0.012, and 0.000.
Each hypothesis presented in the table receives support.

4. RESULTS AND DISCUSSION

The findings of this research encompass various crucial aspects, such as the reliability of constructs,
discriminant validity, R-square values, and the outcomes of statistical hypothesis tests. Specifically, the
scrutinized constructs Decision Making (DM), Optimization of Business Processes (OBP), Organizational
Performance (OP), and Technology Adoption (TA) demonstrate robust reliability and validity. The Average
Variance Extracted (AVE) value surpasses the accepted threshold of 0.5, signifying substantial convergent
validity. Furthermore, discriminant validity is established by correlations within each latent construct
exceeding those between different constructs, thereby reinforcing the significance and precision of each
variable.

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The examination of AVE values underscores the distinctiveness of each construct, with Decision
Making (0.877), Optimization of Business Process (0.885), Organizational Performance (0.869), and
Technology Adoption (0.903) capturing significant unique variations. R-square values offer insights into the
efficacy of the regression model, indicating that Decision Making, Business Process Optimization, and
Organizational Performance explain approximately 61.8%, 80.4%, and 64.9% of the variation, respectively.
Furthermore, the results of statistical hypothesis testing, detailed in Table 4, affirm the significance of
the relationships (DM > OBP, OP > OBP TA > DM, TA > OBP, and TA > OP). The statistical significance is
evident in the sample values, high T statistics, and low P values (0.022, 0.012, and 0.000), providing robust
support for each hypothesis.

5. CONCLUSION
This research comprehensively explores organizations' capacity to navigate the impacts of cutting-edge
technology, with a specific emphasis on the adoption of Business Intelligence Systems (BIS). The findings
demonstrate that the adoption of technology, particularly through BIS, exhibits a substantial positive
correlation with organizational performance, the quality of decision-making, and the optimization of business
processes.
An examination of construct reliability, discriminant validity, and R-square values allows for the
overarching conclusion that each variable under scrutiny Decision Making (DM), Optimization of Business
Process (OBP), Organizational Performance (OP), and Technology Adoption (TA) exhibits robust reliability
and validity. This is underscored by the Average Variance Extracted (AVE) values exceeding the 0.5 threshold,
indicating strong convergent validity and met discriminant validity.
Further scrutiny accentuates the distinctiveness of each variable, as evidenced by AVE values
reflecting significant variations. Decision Making (0.877), Optimization of Business Process (0.885),
Organizational Performance (0.869), and Technology Adoption (0.903) successfully capture substantial unique
variations. Moreover, the R-square value signifies the effectiveness of the regression model in elucidating
factors influencing readiness to change and engagement in work.
Consistently, the results of statistical hypothesis testing support a positive relationship between the
variables, affirming that BIS adoption effectively contributes to organizational performance enhancement,
improved decision-making quality, and optimized business processes. This implies that BIS integration
transcends mere technological transformation, encapsulating the evolution of organizational culture and
strategy in response to the demands of the digital era. These conclusive insights provide a robust foundation
for organizational leaders to comprehend and leverage technology's potential in addressing challenges,
adapting to change, and exploring opportunities in the ever-evolving digital landscape.

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