Data analytics and SMEs: how maturity improves performance

Abstract

The increasing generation of data has inspired many organizations to explore data using data analytics. Initially, mainly large organizations showed a keen interest, but more recently also small and medium-sized enterprises (SMEs) picked up on this trend. However, the use of data analytics to improve performance has several challenges for SMEs. For example, SMEs have fewer financial resources and knowledgeable staff who are familiar with data analytics. As SMEs play a significant role in the economy it is crucial that these disadvantages are mitigated. Still, many research gaps exist concerning the use of data analytics in SMEs. One of these gaps is the role of data analytics maturity on organizational performance. And more specifically, what dimensions should mature or what type of benefits are achieved by mature use of data analytics. Therefore, this study aims to measure SME's data analytics maturity through a maturity model and show if mature use of data analytics within SMEs is related with a positive impact on organizational performance. The study findings indicate that higher data analytics maturity is related to a positive impact on the organizational performance of SMEs. Specifically, the contribution of mature use of data analytics to SME performance is substantial after the awareness stage. Furthermore, the results suggest that the benefits for mature use of data analytics mainly stimulate the successful introduction of new products and services rather than other aspects of organizational performance.