A Qualitative Explanation of How Business Intelligence Is Utilized in the Tourism and Hospitality Industry: A Grounded Theory Approach

Abstract

Digital transformation and the proliferation of data-driven technologies, particularly Business Intelligence (BI), have fundamentally reshaped decision-making patterns and value creation processes in the tourism industry. However, the manner in which analytical data are transformed into organizational capabilities capable of enhancing the performance of tourism enterprises has not yet been fully explained. The aim of this study was to explain the role of Business Intelligence in the development of dynamic capabilities within organizations operating in Iran’s tourism industry. To achieve this objective, the study adopted a qualitative approach using the Grounded Theory methodology. Research data were collected through 21 in-depth semi-structured interviews with senior executives, information technology managers, digital marketing specialists, and data analysts working in hotels, reservation platforms, and travel agencies. Data analysis was conducted based on the systematic model of Strauss and Corbin and involved three stages: open coding, axial coding, and selective coding. The findings revealed that the institutionalization of data-driven strategic agility serves as the core category and plays a central role in linking Business Intelligence with the development of dynamic capabilities. The results further indicated that market turbulence and the expansion of the digital data ecosystem function as causal conditions that drive organizations toward the adoption of Business Intelligence. In this context, factors such as technology-oriented strategic orientation, legacy systems, and a data-driven culture were identified as contextual conditions, while information silos, skill gaps, and infrastructural limitations emerged as intervening conditions influencing the utilization of data. In response to these conditions, organizations reconfigure their resources and processes by adopting strategies such as AI-driven service reengineering, dynamic capacity and pricing management, and customer experience analytics. The outcomes of this process include service personalization, enhanced strategic resilience, and increased brand value in the digital environment. The findings suggest that Business Intelligence extends beyond being merely an analytical tool and functions as a key mechanism for strengthening dynamic capabilities and enhancing strategic agility within tourism organizations. By presenting a grounded conceptual model, this study contributes to the literature on digital transformation and dynamic capabilities in the tourism industry and provides managerial implications for developing data-driven decision-making and effectively leveraging analytical technologies.