Harnessing business analytics value through organizational absorptive capacity

Shanglei Wang,W. Yeoh,Gregory Richards,S. Wong,Younghoon Chang

Published 2019 in Information Manager (The)

ABSTRACT

Abstract Business analytics (BA) is a resource-intensive, risky endeavor. However, the literature has not addressed the important question of how to assimilate BA technologies for competitive advantage. We build a research framework and outline the BA assimilation mechanisms through organizational absorptive capacity (AC). Data were collected from 600 companies across six countries and analyzed using partial least squares. The findings revealed that organizational AC plays a crucial mediating role between BA competency and BA assimilation, leading to competitive advantage. This study contributes significantly to both information technology assimilation and BA value research by incorporating the role of organizational AC.

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