Factors Affecting Big Data Analytics Adoption in Small and Medium Enterprises

Abstract

Big data analytics (BDA) has a pivotal role in improving business performance, especially in small and medium enterprises (SMEs). The objective of this study is to examine the determinants and consequences of BDA adoption for SMEs. The theoretical foundation of the study is derived from Technology-Organization-Environment (TOE) framework and Resource-Based View (RBV) theory. Using a survey of 233 SMEs in Saudi Arabia, the results reveal that technical aspects (i.e., complexity and compatibility), environmental aspects (i.e., uncertainty), and organizational aspects (i.e., top management support, organization readiness, and data-driven culture) are perceived as factors that encourage firms to adopt BDA. The study shows a strong relationship between BDA and SMEs’ performance (financial, market, and business process). The empirical work presented in this paper adds to the understanding of the motivators of BDA adoption for SMEs, and consequently the effects of BDA adoption on SME performance. Theoretical and practical implications of the results are discussed further.