Oper Res Int J (2018) 18:825–839

https://doi.org/10.1007/s12351-017-0343-4

ORIGINAL PAPER

A framework for deployment of mobile business

intelligence within small and medium enterprises
in developing countries

Tope Samuel Adeyelure1 • Billy Mathias Kalema1 •

Kelvin Joseph Bwalya2

Received: 14 February 2017 / Revised: 31 May 2017 / Accepted: 4 August 2017 /

Published online: 12 August 2017
 Springer-Verlag GmbH Germany 2017

Abstract Over the years, there has been emergence of varieties of decision-support
applications. Systems evolved due to the rapid growth in data complexity and need
for accurate information in dynamic environments. Due to increase in mobility and
automation of activities within enterprises, huge amounts of data are rapidly gen-
erated than they could be instantaneously utilized in heterogeneous, intra or inter-
organisational business processes. Many of the developing countries’ small and
medium enterprises (SMEs) are faced with challenges of accessing intelligent
information for decision making at different operational sites. SMEs in developing
countries are paying a huge business opportunity cost by not utilizing mobile
business intelligence (MBI) systems. This is as a result of a general lack of MBI
framework to inform the deployment of MBI solutions in developing countries’
SMEs. This study proposes a framework for the deployment of MBI in developing
countries’ SMEs. In order to achieve this, the study adopted various scientific
approaches (textual analysis, principal component analysis, and structural equation
modelling) systematically. This study is expected to contribute towards the litera-
ture and the methods in establishing and determining the factors needed for the
development of frameworks in information systems studies. Practically, the study is
expected to aid deployment of MBI for SMEs in developing country contexts.

& Tope Samuel Adeyelure

adeyelurets@tut.ac.za
Billy Mathias Kalema
KalemaBM@tut.ac.za
Kelvin Joseph Bwalya
kbwalya@uj.ac.za
1
Department of Informatics, Tshwane University of Technology, Soshanguve, South Africa
2
Department of Information and Knowledge Management, University of Johannesburg,
Johannesburg, South Africa

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826 T. S. Adeyelure et al.

Keywords Mobile business intelligence  Principal component analysis  Small

and medium enterprises  Textual analysis

1 Introduction

Data leads to information which in-turn leads to knowledge and therefore aids
insight as well as intelligence (Bernstein 2011). According to Bitterer and Sood
(2011), comprehensive ability to use existing experience or knowledge to adapt to
new situations or solve new problems is intelligence. The upsurge in the mobility of
information has given rise to various enterprises ambitious interest in adopting
mobile business inventiveness, which is also strengthened by the benefits such as,
facilitating access to important and crucial information at any given location,
experienced by the workers within such an organization (Davenport et al. 2010).
Stackowiak et al. (2009) encapsulated the different types of BI platforms as;
traditional platform, Software as a Service platform (SaaS), cloud platform,
operational platform and mobile platform which is the focus of this study. mobile
business intelligence system runs with the aid of application compatible with the
operating system on host mobile devise. Few researchers such as (Chung and Chen
2009; Ghazanfari et al. 2011; Aleš and Yeoh 2015) have outlined the benefits of
mobile business intelligence (MBI) comprising but not limited to; accessibility,
usability, collaboration, and improved workforce productivity. Herrington et al.
(2011), further stated that BI helps in identifying the actual intelligence needs of
business organizations. Johns and Van (2010) emphasized that advantages of
obtaining BI for businesses far outshine the costs, stating that BI can be the
differentiating factor in the marketplace during the periods of poor economy; aids
cohesive marketing communication plans; and aid in pre-selling an idea to the target
customers.
Many SMEs come up with their specific individual Business Intelligence (BI)
services to provide adequate guidance for their decision makers (Vuori and
Okkonen 2012; Taleghani et al. 2012; Burns 2016; Laursen and Thorlund 2016).
The level of interest in BI has grown significantly owing to the fact that BI systems
are an important component of a modern enterprise’s information infrastructure as
they contribute to its success and competitiveness (Davenport et al. 2010). However,
much as BI is widely used by bigger enterprises such as telecommunications and
banking, its implementation by small enterprises is still generally limited (Khan
et al. 2010). The limited penetration of MBI in SMEs culminates into a situation
where the SMEs miss out in capturing the ever growing mobile place. It is not a
secret that the penetration of mobile technologies in developing world contexts
keeps growing and the need for pervasive integration of dynamic information into
businesses to better serve customers’ needs and stakeholders’ expectations cannot
be overemphasized.
With the discrepancy in policies and legal frameworks in different countries, the
classification of SMEs varies. The study used active number of employees due to its
broad similarities across South Africa and Nigeria. Active number of employees less
than 10 for small to less than 130 for medium, for IT related SMEs in both South

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A framework for deployment of mobile business intelligence… 827

Africa and Nigeria. The study did not consider the definition and classification of
SMEs based on available assets or financial capital due to the differences in the size
of the economies of the countries involved in the study.

2 Study problem

With the noticeable increase in mobility of SMEs, and dynamism in information

gathering, the need for strategic information cannot be overemphasized
(Brockmann et al. 2012). Although the importance of MBI to SMEs is well
acknowledged, there are few documentations of optimal utilization of MBI in
SMEs (Krajewski et al. 2010). The study of MBI in SMEs has not been well
acknowledged and documented as it has been in larger enterprises (Ghazanfari
et al. 2011). The implementation of MBI in SMEs is more of a challenge than in
bigger businesses in developed countries because of different factors enshrined
with SMEs (Bitterer and Sood 2011; Stodder 2012; Dawson and Van Belle
2013; Gray 2011; Dresner 2010). Dresner (2010), confirms that there is a gap in
the literature on MBI related factors in SMEs especially from the developing
world. The situation is different for the case of developed countries as significant
research has been done to find ways for supporting pluralization of SMEs and
their penetration in the economic hierarchies (Venter and Tustin 2009).
Castellanos et al. (2010), stressed the need to investigate contextual factors of
MBI that are unique to enterprises in different geographical regions in order to
harness positive outcome(s) and co-operative goal(s). More so, hardly any
framework based factors centered on SMEs in developing countries have been
developed to inform the implementation of MBI (Bitterer and Sood 2011;
Stodder 2012). A study understanding the factors influencing deployment and
enshrinement of SMEs in the economies of developing countries is vital
especially given the fact that SMEs in developing countries are mostly resource-
constrained and cannot be compared with those in developed countries. The
implication is that that lessons learnt in developed countries with regards to
SME implementation in developed countries cannot be sorely referenced to
inform the deployment and development of SMEs in developing countries.
Anecdotal evidence has shown that many SMEs in Nigeria and South Africa
have not adopted MBI owing to different contextual factors and are therefore
missing out in many aspects of business intelligence and competitiveness. In a bid
to understand the contextual factors influencing adoption and integration of MBI
in SMEs’ business processes, this study involved different levels of SMEs in
Nigeria and South Africa as research participants. The anticipated was a
conceptual framework which could be used in the deployment of MBI in SMEs
in Nigeria and South and other contextually similar environments. South Africa
and Nigeria were chosen as study locations owing to their entrenched SMEs in the
socio-economic setup and because of logistical factors with regards to research
realization.

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3 Research design and methodology

Extensive review of related literature was carried out so as to gather secondary data;
this resulted in the identification of several factors and relevant/pertinent attributes
that are needed in the development of the MBI framework. Relevant search was
carried out in databases (south Africa library, Tshwane university repository, and so
on), journals, and conference proceedings to prop up cogent constructs and their
attributes. This process is known as content search. 70 factors were identified during
this process (Table 1).
As a result of huge data gathered during content search, the study sees the need to
evaluate and validate the factors in order to eliminate recurrences of constructs
detected from various repertories hence reducing and categorizing them. Hence,
textual analysis approach was adopted. Textual Analysis is a methodology of data-
gathering process for those researchers who want to understand the ways in which
researchers from various environments in the world of various cultures and
subcultures make sense of a particular study niche. 49 factors were identified and
categorized after the analysis (Table 2).
The factors determined from textual analysis were noticed to be derived from
different research environments. Hence the need to contextualize the factors within
the research domain. In order to this the study adopted Principal Component
Analysis (PCA). PCA is a technique which uses sophisticated essential mathemat-
ical principles to transform a number of feasibly correlated variables into a lesser
number of variables called Principal Components. Hence PCA enabled the study to
spot patterns which was key determinant in the factor reduction process.
Questionnaires were sent to experts in order to determine the relevance of the
factor in the context of SMEs in developing countries (contextualization of the
factors). This procedure is usually referred to as expert judgement. 38 contextual
factors were identified after PCA process.
The 38 factors identified from PCA constituted the constructs in the research
framework. However, the need to further validate the framework was considered
very important. Hence, the study adopted Structural Equation Modeling (SEM)
to validate the developed research framework. However, the need to validate the
framework is a procedural step that must be followed. Hence, a measuring
instrument was developed centered on the research model, which was in the
form of close-ended questionnaire that was used to gather the primary data. The

Table 1 Summary of identified

Factors
factors on MBI in SMEs
Financial resources
Perceived ease of use/complexity
Top management support
Management expectations
Satisfaction and systems satisfaction
Vendor and consultant support
Top management support
Category
Organizational factors
Technology complexity
Organizational factors
Organizational factors
Relative advantage
Vendor factors
Environmental factors

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A framework for deployment of mobile business intelligence… 829

Table 2 Ranking of factors

Item Category Metric Frequency

1 Organizational factors Top management support 41

Management expectations 23
2 Security factor Information security policy 29
User privacy 36
3 Environmental factors Government regulations 32
Loans and grants 16
4 Compatibility Mobile platform 34
Graphical user interface 24
5 Entrepreneur competences factors Information utilisation 11
Flow of information 12
6 Technological characteristics Graphical user interface 25
Storage capacity 15
7 Vendor factors Training session 14
Vendors/technicians location 17

closed-ended questionnaire was coded and then transcribed into Statistical

Package for Social Scientists (SPSS) for further quantitative analysis. Structural
Equation Modeling (SEM) was then applied to finally validate the MBI
framework.

4 Selecting small and medium enterprises

The study identified a generic definition that fits into the context of both South
Africa and Nigeria. The study used active number of employees due to its broad
similarities across South Africa and Nigeria. Active number of employees less than
10 for small to less than 130 for medium, for IT related SMEs was adopted for
SMEs selection in this study. Furthermore, the study only sampled IT related SMEs,
so as to prevent, illogical and inconsistent responses from the participants. In order
to establish an accurate sample size, sampling was done based on Coahran (1983)
method of determining sample size.
rffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi
1P
ME ¼ z P
n
where ‘ME’ is the desired margin of error, ‘z’ is the z-score, e.g. 1.645 for a 90%
confidence interval, 1.96 for a 95% confidence interval, 2.58 for a 99% confidence
interval, ‘P’ is our prior judgment of the correct value of ‘P’ and ‘n’ is the sample
size (to be found). Sampling size for Nigeria and South Africa were 266 and 246
respectively.

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5 Findings and discussion

5.1 Content search

Numerous repositories were examined during the process of content search and the
identified factors are illustrated in Table 1. The search was based on the following
key terms: MBI, MBI deployment, Critical Success Factor of MBI, and so on.
Table 1 shows few of the 70 factors retrieved.

5.2 Textual analysis

All the factors were widely inspected as well as the comprehensive significance
appended to it during textual analysis. Hence, identified factors named in any other
way yet conveying comparative implications were assembled collectively as a
single factor. After subjecting the 70 factors to Textual Analysis, following the
systematic approach stated above, the factors were reduced to 49. Table 2 shows
few of the final 49 factors grouped in different categories with their respective
frequencies.

5.3 Component analysis

Principal Component Analysis (PCA) was used to analyze a transcribed question-

naire completed by experts within the research context/domain. The questionnaire
was developed from the identified factors derived from Textual Analysis. The PCA
technique bases its elimination method by deriving the eigenvalue for each attribute
as well as the total variance explained. Noted attributes whose eigenvalue were
under 1 were excluded (Pallant 2005; Ganesh and Mehta 2010). This approach was
adopted to contextualize the factors. Using PCA, the 49 factors that were gathered
through Textual Analysis were analyzed and thereafter 38 factors were reserved for
additional analysis. Few of the outcomes are revealed in Table 3 which indicates
that 38 factors loaded with eigenvalue greater than 1 and thus acceptable for
inclusion in the study.

Table 3 Reliability statistics

Component Total variance explained initial eigenvalues

Uni-TVE % of Variance Cumulative %

1 6.025 74.675 54.553

2 8.543 78.786 80.729
3 5.979 68.642 85.012
4 1.444 56.653 88.438
5 1.368 56.553 91.609
6 1.765 57.007 94.275

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A framework for deployment of mobile business intelligence… 831

5.4 Validating the conceptual framework

After the operationalization of the factors within the context of the study, a
conceptual framework was developed using the 38 identified (contextual) factors. A
questionnaire was developed from the conceptual framework. The study also tested
the reliability of questionnaire using SPSS. The results have a-coefficient
(Cronbach’s Alpha) of 0.841 which is above the average of 0.700. The outcome
of the questionnaire reliability is shown in Table 4.
The study adopted the steps by Arbuckle (2008) which state that, latent variables
are the independent, silent ones and measurable attributes or items, referred to as
observed variables when it belongs to a certain latent variable. The latent variables
represented by circles in this study are; OF, TF, EF, TCPLX, TCOMP, RA, VF,
ECF, SF, INF, and Deployment (ENP). Figure 1 displays the measurement model.
The model was then tested for fitness using 5 fit indices namely; Chi-square (v2),
root mean square of error approximation (RMSEA), comparative fit index (CFI),
standard root mean square residual (SRMR) and goodness of fit index statistic
(GFI). The measurement model was modified to obtain accurate outcomes.
Tremendous improvement was achieved after the modified model was run. The
outcomes of the modified model are shown in Table 5.

Table 4 Reliability statistics of the questionnaire

Cronbach’s alpha Cronbach’s alpha based on standardized items No. of items

0.841 0.832 38

Fig. 1 The measurement model

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Table 5 Reliability statistics of the questionnaire

Fit indices Measurement Threshold Recommendations for the measurement
model model

Chi-square 8.195 Ratio 2.1 B v2/d.f B 3.1 v2/d.f is too big and out of the rage of
threshold. This shows model needs
modification
CFI 0.452 CFI C 0.950 Less than the threshold, suggests model
need modification
RMSEA 0.185 0.05 B (RMSEA) B 0.080 More than the threshold, suggests model
need modification
SRMR 0.069 RMR B 0.08 Above the threshold value. Shows needs
modification
GFI 0.63 GFI C 0.90 Less than the threshold, shows model need
modification

In addition, Fig. 2 shows the final attuned structural model of this study, which
was extracted from AMOS.
The study tested the existing relationships between the constructs and the
indicators, as soon as the model was established to be fit. Seven of the ten
hypothesized relationships amongst the identified latent variables gotten after
running the structural model are shown in Table 6.
From Table 6 above the following conclusions can be made.
H1: Organizational factor will have an influence when infusing MBI in SMEs
business process. H2: Technology factor will have no significant influence when

Fig. 2 Attuned structural model

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Table 6 Reliability statistics of

Hypothesis Path S.E. C.R Comment
the questionnaire
H6 INF / RA 2.380 0.694 Accepted
H5 INF / TCOMP 0.396 0.044 Accepted
H7 INF / VF 0.329 0.064 Accepted
H1 INF / OF 0.154 0.108 Accepted
H2 INF / TF -0.027 0.055 Rejected
H3 INF / EF 1.977 0.469 Accepted
H10 ENP / INF 0.243 0.039 Accepted

infusing MBI in SMEs business process. H3: Environmental factor will have a
significant influence when infusing MBI in SMEs business process. H4: Techno-
logical complexity factor will have a significant influence when infusing MBI in
SMEs business process. H5: Technological compatibility factor will have a
significant influence when infusing MBI in SMEs business process. H6: perceived
relative advantage will ultimately influence infusion of MBI in SMEs business
process. H7: Vendor factor will ultimately influence infusion of MBI in SMEs
business process. H8: Entrepreneurial competencies will considerably influence
infusion of MBI in SMEs business process. H9: Security factor will ultimately
influence infusion of MBI in SMEs business process. H10: Infusion of all cogent
MBI factors in SMEs will considerably lead to successful deployment of MBI.
Figure 3 shows the final framework for MBI deployment within SMEs in
developing countries.

Fig. 3 Framework for MBI deployment in developing countries SMEs

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834 T. S. Adeyelure et al.

6 Conclusion

In conclusion, the study outlined an explicit review of BI, focusing on MBI

platform. The importance of MBI to organization (including, SMEs) was
highlighted. However, this study further elaborated on the identified problems
and gaps related to the deployment of MBI by SMEs in developing countries. MBI
factors were identified using textual analysis and further contextualized using PCA.
The data gathering instrument (questionnaire) was designed and tested for
reliability. The validity of the framework was tested using AMOS as well as the
hypothesis. The accepted hypothesis formed the final MBI framework of this study.
The study outcomes highlighted that; organizational factor, environmental factor,
technological complexity, technological compatibility, relative advantage, vendor
factor, entrepreneurial competencies, security factor, and infusion are factors that
are pertinent in the deployment of MBI in developing countries’ SMEs.
Though the study was specifically for SMEs in South Africa and Nigeria, may be used
as a baseline for research in other developing countries’ SMEs, particularly in Africa.
The developed framework in this study will serve as a baseline in the integration of MBI
hence, helping SMEs to avoid having failed MBI projects. Even though, efforts were put
in place in this study to mitigate gaps that could have led to inaccuracies nevertheless, it
is common that there are constraints beyond the control of the researcher(s). Hence, for
further research, the study suggests the need to carry out a longitudinal study to see the
changes in the deployment. In addition, the study suggests the use of action research to
establish best practice in the process of deployment of MBI.

Appendix

See Tables 7, 8 and 9.

Table 7 Summary of identified factors on MBI in SMEs

Factors Category

Financial resources Environmental factors

Perceived ease of use/complexity Technology complexity
Top management support Organizational factors
Management expectations Organizational factors
Satisfaction and systems satisfaction Relative advantage
Vendor and consultant support Vendor factors
Top management support Environmental factors
Systems changes and upgrade Vendor factors
Information security policy Security factor
Task range Technological characteristics
User privacy Security factors
Data privacy Security factors
Task range Technology complexity

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Table 7 continued

Factors Category

Authentication of users Security factor

Data retrieval Technology complexity
Text display Technological characteristics
Task execution Technology complexity
Duration of analysis Technology complexity
Graphical display Compatibility
Text display Compatibility
Mobile platform Compatibility
Graphical user interface Compatibility
User friendly system Compatibility
MBI functionality Compatibility
Perceived competitive advantage Relative advantage
Enterprise competency growth Relative advantage
Organisation success Organizational factors
User friendly system Technology complexity
Resource allocation Organizational factors
Financial resources Organizational factors
Work environment Organizational factors
Internal ethics/governance system Organizational factors
In-house IT infrastructure Organizational factors
Support team Organizational factors
Government regulations Environmental factors
Loans and grants Environmental factors
Technical support Environmental factors
Network provider polices Environmental factors
Customer needs Environmental factors
Maintenance procedure Technology complexity
Changing trends Environmental factors
Perceived barriers Environmental factors
Partnership/collaborative working opportunities Environmental factors
Flow of information Organizational factors
Graphical user interface Technological characteristics
Storage capacity Technological characteristics
Maintenance procedure Technological characteristics
Training session Vendor factors
Vendors/technicians location Vendor factors
Information utilisation Entrepreneur competences factors
Flow of information Entrepreneur competences factors
Dynamic Entrepreneur competences factors
Skills transfer Organizational factors

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836 T. S. Adeyelure et al.

Table 7 continued

Factors Category

Adapting to environmental changes Entrepreneur competences factors

Internal relationship Entrepreneur competences factors
External relationship Entrepreneur competences factors
Continuity Entrepreneur competences factors
Internal relationship Organizational factors
Skills transfer Entrepreneur competences factors
Task champion Organizational factors
Systems development and life cycle support Organizational factors
Wireless vulnerabilities Environment factors
Security awareness Security factors
Security culture Security factors
Business continuity and disaster planning Organizational factors
Network security architecture Security factors
Reliance Organisation factors
Extenuating security disbursements Organisation factors
Environmental uncertainty Environment factors
Education and training of users Organisation factors

Table 8 Ranking of factors

Item Category Metric Frequency

1 Organizational factors Top management support 41

Management expectations 23
Organisation success 12
Resource allocation 26
Financial resources 14
Work environment 37
Internal ethics/governance system 23
In-house IT infrastructure 12
Support team 11
Task champion 2
Systems development and life cycle support 7
Business continuity and disaster planning 9
Reliance 4
Extenuating security disbursements 6
Education and training of users 3

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Table 8 continued

Item Category Metric Frequency

2 Security factor Information security policy 29

User privacy 36
Data privacy 27
Authentication of users 31
Security awareness 6
Security culture 6
Network security architecture 9
3 Environmental factors Government regulations 32
Loans and grants 16
Technical support 14
Network provider polices 19
Customer needs 17
Changing trends 8
Perceived barriers 22
Partnership/collaborative working opportunities 13
Wireless vulnerabilities 4
Environmental uncertainty 7
4 Compatibility Mobile platform 34
Graphical user interface 24
User friendly system 16
MBI functionality 44
5 Entrepreneur competences factors Information utilisation 11
Flow of information 12
Dynamic 19
Adapting to environmental changes 14
Internal relationship 15
External relationship 11
Continuity 13
Skills transfer 9
6 Technological characteristics Graphical user interface 25
Storage capacity 15
Maintenance procedure 19
7 Vendor factors Training session 14
Vendors/technicians location 17

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838 T. S. Adeyelure et al.

Table 9 Reliability statistics

Component Total variance explained initial eigenvaluesa

Uni-TVE % of Variance Cumulative %

Raw
1 6.025 74.675 54.553
2 8.543 78.786 80.729
3 5.979 68.642 85.012
4 1.444 56.653 88.438
5 1.368 56.553 91.609
6 1.765 57.007 94.275
7 1.764 56.963 95.955
8 1.096 51.073 97.220
9 2.854 61.965 98.207
10 6.934 69.675 99.054
11 7.230 70.753 99.619
12 3.445 62.766 99.901
13 1.004 50.863 100.000
14 9.757 79.653 100.000
15 1.864 51.765 100.000
16 1.963 58.876 100.000
17 2.863 63.766 100.000
18 1.747 51.532 100.000
19 1.754 51.763 100.000
20 1.064 50.753 100.000
21 1.538 51.653 100.000
22 1.775 50.565 100.000
23 1.684 50.673 100.000
24 1.863 51.866 100.000
25 1.858 50.993 100.000
26 7.865 70.532 100.000
27 3.766 63.863 100.000
28 1.854 50.757 100.000
29 1.235 51.755 100.000
30 1.074 50.428 100.000
31 1.476 50.648 100.000
32 1.754 51.675 100.000
33 1.644 51.238 100.000
34 8.643 78.787 100.000
Extraction method: principal
component analysis 35 1.763 50.575 100.000
a
When analyzing a covariance 36 1.880 52.578 100.000
matrix, the initial eigenvalues 37 4.763 65.869 100.000
are cogent across the raw and 38 4.974 68.758 100.000
rescaled solution

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