How do top- and bottom-performing companies differ in using business analytics?
Issue Date
2017-09-21Subjects
business analyticsinformation processing
information processing view
contingency theory
data-driven environment
organisational performance
MANOVA
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Purpose Business analytics (BA) has attracted growing attention mainly due to the phenomena of big data. While studies suggest that BA positively affects organizational performance, there is a lack of academic research. The purpose of this paper, therefore, is to examine the extent to which top- and bottom-performing companies differ regarding their use and organizational facilitation of BA. Design/methodology/approach Hypotheses are developed drawing on the information processing view and contingency theory, and tested using multivariate analysis of variance to analyze data collected from 117 UK manufacture companies. Findings Top- and bottom-performing companies differ significantly in their use of BA, data-driven environment, and level of fit between BA and data-drain environment. Practical implications Extensive use of BA and data-driven decisions will lead to superior firm performance. Companies wishing to use BA to improve decision making and performance need to develop relevant analytical strategy to guide BA activities and design its structure and business processes to embed BA activities. Originality/value This study provides useful management insights into the effective use of BA for improving organizational performance.Citation
Cao G, Duan Y (2017) 'How do top- and bottom-performing companies differ in using business analytics?', Journal of Enterprise Information Management, 30 (6), pp.874-892.Publisher
Emerald Publishing LimitedAdditional Links
http://www.emeraldinsight.com/doi/full/10.1108/JEIM-04-2016-0080Type
ArticleLanguage
enISSN
1741-0398ae974a485f413a2113503eed53cd6c53
10.1108/JEIM-04-2016-0080
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