Business Intelligence and the Balanced Scorecard: An Exploratory Analysis of Data-Driven Strategic Performance Management

Abstract

Business Intelligence (BI) systems are becoming increasingly crucial for both managing performance and making strategic decisions as organizations are undergoing digital transformation and creating more and more organizational data. The purpose of this research is to illustrate the key dimensions that correspond to the integration of BI into Balanced Scorecard (BSC) structures for the purpose of managing strategic performance. A quantitative research design was used to collect data from a sample of respondents through a questionnaire with 25 items using a 5-point Likert scale to measure them. The gathered data were evaluated by performing exploratory factor analysis (EFA) utilizing SPSS software. The study found 5 primary dimensions: (1) data quality, (2) decision support, (3) data integration, (4) BI analytical capability, and (5) predictive analytics. The EFA results showed that the factor structure produced from this analysis accounted for 73.62% of the variance attributed to the total variance of the measurement scale, which establishes the construct validity of the measure. This study adds to the body of literature by providing an empirical examination of how dimensions associated with integrating BI into BSC systems are defined and emphasizes that analytical technologies continue to expand their impact on transforming the way organizations manage strategic performance.