Big data analytics adoption success: value chain process-level perspective

Abstract

Purpose

Despite the considerable hype about how Big Data Analytics (BDA) can transform businesses and advance their capabilities, recognising its strategic value through successful adoption is yet to be appreciated. The purpose of this paper is to focus on the process-level value-chain realisation of BDA adoption between SMEs and large organisations.

Design/methodology/approach

Resource-based theory offered the lens for developing a conceptual BDA process-level value chain adoption model. A combined two-staged regression-artificial neural network approach has been utilised for 369 small, medium (SMEs) and large organisations to verify their critical value chain process-level drivers for successful organisational adoption of BDA.

Findings

The findings revealed that organisational BDA adoption success is driven predominantly by product—and service-process-level value, with distinctive discrepancies dependent on the organisation’s size. Large organisations primarily embrace BDA for their external value chain dimensions, while SMEs encompass its internal value chain cues. As such, businesses will be advised to acknowledge their organisational dynamics and precise size to develop the right strategies to adopt BDA successfully.

Research limitations/implications

The study advances the understanding of the role of internal and external value chain drivers in influencing how BDA can be successfully adopted in SMEs and large organisations. Thus, appreciating the organisation’s unique attributes, including its size, will need to be carefully examined. By investigating these elements, this research has shed new light on how developing such innovative capabilities and competencies must be carefully crafted to help create a sustainable competitive advantage.

Practical implications

For an organisational positioning, acknowledging the role of internal and external value chain drivers is critical for implementing the right strategies for adopting BDA. For larger businesses, resources for innovation often can be widely available compared to SMEs. As such, they can manage their costs and associated risks resourcefully. By considering the identified value-chain-related adoption success factors, businesses should be better positioned to assess their competencies while being prepared to adopt BDA.

Originality/value

The study offers the research and business community empirical-based insights into the strategies needed to successfully adopt big data in an organisation from a process-level value chain perspective.