Big Data Analytics-enabled Sensing Capability and Organizational Outcomes: Assessing the Mediating Effects of Business Analytics Culture

Abstract

With the emergence of information and communication technologies, organizations worldwide have been putting in meaningful efforts towards developing and gaining business insights by combining technology capability, management capability and personnel capability to explore data potential, which is known as big data analytics (BDA) capability. In this context, variables such as sensing capability—which is related to the organization’s ability to explore the market and develop opportunities—and analytics culture—which refers to the organization’s practices and behavior patterns of its analytical principles—play a fundamental role in BDA initiatives. However, there is a considerable literature gap concerning the effects of BDA-enabled sensing capability and analytics culture on organizational outcomes (i.e., customer linking capability, financial performance, market performance, and strategic business value) and on how important the organization’s analytics culture is as a mediator in the relationship between BDA-enabled sensing capability and organizational outcomes. Therefore, this study aims to investigate these relationships. And to attain this goal, we developed a conceptual model supported by dynamics capabilities, BDA, and analytics culture. We then validated our model by applying partial least squares structural equation modeling. The findings showed not only the positive effect of the BDA-enabled sensing capability and analytics culture on organizational outcomes but also the mediation effect of the analytics culture. Such results bring valuable theoretical implications and contributions to managers and practitioners.