How does business analytics contribute to organisational performance and business value? A resource-based view

Abstract

PurposeThe purpose of this article is to identify how the organisations are able to improve their business value through acquisition of business analytics capabilities and by improving their performance.Design/methodology/approachWith the help of literature survey, along with standard resource-based view framework, a conceptual model has been developed. These have been statistically tested by collecting the data using the survey questionnaire from 306 selected respondents from various service sector- and product-based organisations in India. To analyse the data we have used partial least square–based structural equation modelling.FindingsThe study highlights that by the help of data acquisition and tool acquisition as two vital components the acquisition of business analytics capabilities could improve the business value of the organisation by strengthening its organisational performance. The findings of this research also indicated that acquisition of business analytics capabilities has a significant influence on an organisation's business process performance and business decision, which in turn significantly influences organisational performance. And organisational performance eventually positively influences its business value. The model was found to provide an explanative power of 71%.Research limitations/implicationsThe proposed research model can provide effective recommendations to the management of the organisations to realise the importance of acquisition of effective business analytics capabilities to eventually improve the business value of the organisation.Originality/valueNo specific studies, as yet, have analysed the effects of acquisition of business analytics capabilities for improving organisational performance mediated through business process performance and business decision. Therefore, this research has explored the distinctive effort to empirically validate this understanding.