Driving Factors Affecting the Business Analytics Application from the Cross-Cultural Perspective: An Empirical Study

Abstract

ABSTRACT Despite the growing recognition of business analytics (BA)‘s role in boosting the firm’s intellectual capital and subsequent competitiveness, some firms are still hesitant to adopt BA. To have a clear picture of what will lead to the serious consideration of BA as a business intelligence tool, we conducted confirmation factor analyses and used the structural equation model to determine what drives BA applications. Through a series of hypothesis testing, we discovered that security, ease of use, perceived risk, and IT capability became important determinants for BA applications. On the other hand, various costs associated with BA use and organizational resistance against BA use turned out to be non-deciding factors for BA applications. This paper is one of the first attempts to develop practical guidelines for the successful application of BA based on the empirical study of BA practices among US and Korean firms from a cross-cultural perspective.