Beyond Technological Capabilities: The Mediating Effects of Analytics Culture and Absorptive Capacity on Big Data Analytics Value Creation in Small- and Medium-Sized Enterprises

Abstract

Research on the ability of small- and medium-sized enterprises (SMEs) to harness value from their big data analytics (BDA) investment is a major challenge facing executives but research on this issue involving SMEs is scant. Drawing on the BDA capabilities literature, this article tests the mediating roles of two factors—analytics culture and BDA-specific absorptive capacity—on the ability of SMEs to generate strategic business value from their BDA investments. This article is based on a sample of 447 Canadian SMEs using structural equation modeling with partial least squares. The results confirm that both analytics culture and BDA-specific absorptive capacity amplify the impact of technological and human capabilities on strategic business value. The findings contribute theoretically and empirically to the emerging BDA literature on SMEs. The findings can help executives develop BDA strategies to harness their investments.