Application of big data analytics and organizational performance: the mediating role of knowledge management practices

Muhammad Qasim Shabbir,Syed Babar Waheed Gardezi

doi:10.1186/s40537-020-00317-6

Muhammad Qasim Shabbir, Syed Babar Waheed Gardezi

Open Access

https://doi.org/10.1186/s40537-020-00317-6

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Abstract

Drawing from tenets of the resource-based theory, we propose and test a model that examines the relationship between the application of big data analytics (ABDA) and organizational performance (OP) in small and medium enterprises (SMEs). Further, this study examines the mediating role of knowledge management practices (KMP) in relation to the ABDA and OP. Data were collected from respondents working in SMEs through an adapted instrument. This research study adopts the Baron–Kenny approach to test the mediation. The results indicated that the ABDA had a positive and significant impact on OP. Also, KMP had partially mediated the relationship between ABDA and OP in SMEs. The dataset was solely comprised of SMEs from Pakistan administered Kashmir and may not reflect the insights from other regions. Hence limits the generalizability of the results. Findings highlight both strategic and practical implications related to decision making in organizations for top management, particularly in developing countries. This study attempts to contribute to the literature through novel findings and recommendations. These fallouts will help the top management during the key decision-making process and encourage practitioners who seek competitive advantage through enhanced organizational performance in SMEs.

Highlights

Over the past decade, the application of big data analytics (ABDA) has been widespread research interest among researchers and practitioners [1]
To reveal the insights about this research gap it is required to empirically explore the link between the ABDA and KMP [31]. To address this gap in literature we proposed a model drawing from the tenets of the resource-based theory [32] explaining, how the link between the elements of an organization like data, analytical tools, knowledge management practices creates value, increases efficiency and eventually effect the organizational performance
When organizational performance was regressed on the application of big data analytics, as displayed in Table 5, application of big data analytics demonstrated a direct effect on organizational performance (β = .587, p < .01), and accounted for 34%

Summary

Introduction

The application of big data analytics (ABDA) has been widespread research interest among researchers and practitioners [1]. There is rapid progress in the acknowledgment by the executives about the potential benefits linked with the ABDA [3,4,5]. The annual public and private investment in the application of big data analytics has highly increased up to billions of dollars across the globe [6,7,8]. Due to high strategic and operational potential, the ABDA can improve the efficiency and effectiveness of business and act as a gamechanger [1, 9]. High-performing organizations consider the ABDA as a critical differentiator and significant factor for their growth [10,11,12,13]

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