Assessing the effect of business intelligence quality on enterprise innovation performance: a knowledge dynamic capability perspective

Enterprises leverage business intelligence (BI) to promote competitive advantages. However, there is still a lack of understanding of BI quality and innovation performance. This research constructed a model of the impact of BI’s system quality and information quality on innovation performance through the IS success and dynamic capabilities framework. This research also investigated the mediation effect of knowledge sharing and absorptive capability and examined heterogeneity with potential IT differences between industries. The results with Chinese enterprise data show that both system quality and information quality are positively related to knowledge sharing, and system quality is positively related to absorptive capability, while information quality is not. Through the mediation effect of knowledge sharing and absorptive capability, system quality partially facilitates innovation performance, while information quality completely facilitates innovation performance, although indirectly. There is no significant relationship between system quality and knowledge sharing among traditional industries. These findings contribute new insights into BI-enabled innovation.