How Business Intelligence Shapes Service Innovation: Knowledge Sharing as a Mediator and Culture as a Moderator in the Jordanian Context

Abstract This paper analyze how the use of business intelligence (BI) can be used to increase service innovation within insurance companies and will use the mediating role of knowledge sharing as well as the moderating role of organizational culture. A questionnaire survey was conducted on 223 respondents in the insurance firms in Jordan. Findings of the structural equation modeling (SEM) analysis show that the implementation of BI systems has a positive influence on knowledge sharing and service innovation. In addition, knowledge sharing has a positive impact on service innovation and acts as a mediator in the relationship between BI adoption and service innovation partially. On the contrary, the recommended moderating effect of organizational culture was not supported and the relationship between BI adoption and service innovation continued to be strong, irrespective of cultural variations. These results imply that BI adoption and knowledge sharing have a central role in service innovation, whereas organizational culture may influence the result of service innovation in a more indirect way, via knowledge sharing instead of direct moderating it. The proposed research makes an addition to the resource-based view (RBV) and knowledge-based view (KBV) by incorporating the use of BI technology and social factors in understanding the result of innovations in an emerging market situation. It has made significant theoretical contributions to technologically-driven innovation and pragmatic contributions to the insurers and policymakers about fostering cultures of data-driven innovation and sharing of knowledge.