Unpacking when and how business analytics affect firm performance and customer satisfaction: A longitudinal examination

Business analytics facilitate the development of new digital services and are frequently linked to enhanced performance. Nonetheless, companies engaging in business analytics frequently do not get those benefits. Marketing researchers require novel theoretical frameworks and empirical instruments to address the enquiries regarding the timing and efficacy of business analytics in the digitised landscape. Based on the dynamic capabilities theory, we developed a model that explains the link between business analytics capabilities, firm performance, and customer satisfaction under different environmental settings. We collected longitudinal data from 2019 to 2023 to test the proposed model. Our study revealed that business analytics capability has a significant impact on business performance and customer satisfaction. The impact of business analytics was more pronounced for market-focused performance metrics (i.e., “Tobin's Q″) than for accounting-focused measures (i.e., “ROA”). Moreover, the impact of business analytics on firm performance is greater in more dynamic, and complex environments. Our exploration offers meaningful implications for theory and practice.