Small and medium-sized enterprises (SMEs) face significant challenges that compel them to continuously enhance their customer service quality to remain competitive in dynamic markets. This study examines the role of Business Intelligence (BI) in transforming vast amounts of customer interactions into actionable strategies, thereby improving service quality. Furthermore, it explores the capabilities of business intelligence in enabling SMEs to anticipate customer needs rather than merely reacting to them, fostering greater customer satisfaction and loyalty. To empirically validate these relationships, data were analyzed using SmartPLS (Partial Least Squares Structural Equation Modeling). The empirical findings reveal a substantial and significant impact business intelligence on service quality enhancement, with the structural model demonstrating a strong explanatory power where R² = 0.731, indicating that 73.1% of the variance in customer service quality is explained by the investigated BI capabilities. Strategic applications—such as real-time responsiveness and proactive adjustments—are also highlighted as critical drivers for operational excellence in SMEs.
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