Vol. 7, Issue 1, Part B (2025)

Small and Medium Sized Enterprises (SME) represent an extremely important aspect for an economy of a country, especially for the economies of developing countries including Zambia. Increasingly demanding market, process of globalization, advancement of information and telecommunication technology, and an increase in the negotiating power of certain stakeholders such as customers/clients, has caused the need for a better, faster and more efficient system of making day-to-day decisions, both on operational and strategic level.

Complexities in making effective and timely business decisions in highly competitive markets have driven many organizations to adopt data-driven, decision-making processes using Business Intelligence (BI) applications. Despite these applications being suited for use in most organizations regardless of size, only larger enterprises have reached a stage of maturity in BI use, while small and medium-sized enterprises (SMEs) still lag behind. Although there is a rich body of literature on information technology (IT) adoption and implementation, literature relating to BI adoption, especially in the SME context, remains limited. This study addressed the lack of a research framework for examining the current state of BI effectiveness in facilitating growth of SMEs in Lusaka district.

This study adopted the correlational research design because it gives one the chance to predict the depended variable and explain the links between variables. Correlation research is ideal to reflect contexts, deal with multiple variables and develop a complete pattern of relationships. The sample was systematic selected from publicly accessible lists obtained of Small and Medium Enterprise in Lusaka district. Empirical data was collected by using self-administered questionnaires and data analysis was based on 377 SMEs in Lusaka district.

This study employed closed and open ended semi-structured questionnaires for data collection purpose, and data analysis was done quantitatively and qualitatively using the Software Package for Statistical Science (SPSS) and STATA. The findings revealed interesting insights into an understanding of BI-effectiveness in SME’s growth in Lusaka district. The results showed that revenue bases (profitability), improved customer segmentation and competitive advantage (identifying market trends and opportunities) account for BI Systems in facilitating SMEs growth in Lusaka district. Also, the analysis revealed that most SME’s in Lusaka have reached a high level in terms of BI Systems implementation. This study contributes to enrich the Information Systems (IS) literature by identifying the contextual factors that organizations especially in southern Africa countries should focus on with their BI Systems implementation effort.