Understanding the key factors and performance impacts of big data analytics adoption in small to medium-sized enterprises.
The article discusses the adoption of Big Data Analytics (BDA) among small and medium-sized enterprises (SMEs). It explores the determinants that influence this adoption and the subsequent impact on financial and market performance. By utilizing a comprehensive framework combining the technological-organizational-environmental (TOE) model and the resource-based view (RBV) theory, the study provides insights into the critical factors essential for effective BDA implementation in SMEs.
Introduction
The integration of Big Data Analytics (BDA) has revolutionized decision-making processes and enhanced firm performance. However, its adoption among SMEs is not as prevalent as in larger organizations due to several barriers. This study aims to fill the knowledge gap by identifying the key determinants and consequences of BDA adoption in SMEs through the lenses of the TOE and RBV theories.
Technological Factors
Among the various technological factors, the study finds that complexity and uncertainty/insecurity negatively impact BDA adoption, while trialability and observability have positive effects. Surprisingly, factors such as relative advantage and compatibility do not significantly affect the adoption decision. Complexity and security concerns are major barriers, highlighting the need for simplified solutions and reliable security assurances from BDA providers.
Organizational Context
Top management support and organizational readiness are critical for successful BDA adoption in SMEs. Managers need to foster a supportive environment, secure financial and technical resources, and ensure adequate training for employees. These efforts are crucial for overcoming internal challenges and facilitating effective BDA implementation.
Environmental Influences
External support from vendors plays a significant role in promoting BDA adoption among SMEs. This includes technical assistance, training, and trustworthy relationships. However, competitive pressure and government regulations show no significant impact, possibly due to the specific economic and market conditions in Iran, where the study was conducted.
Performance Impacts
The adoption of BDA significantly enhances both financial and market performance of SMEs. Firms that implement BDA can observe improvements in customer retention, sales growth, and overall profitability. Additionally, BDA helps firms quickly enter new markets, introduce innovative products/services, and increase their market share.
Practical Implications
For BDA to be more widely adopted among SMEs, service providers should offer trial versions, reliable security, and extensive support. Emphasizing top management involvement and readiness is essential for overcoming barriers and promoting a supportive ecosystem for BDA initiatives. The study underscores the transformational potential of BDA and its substantial benefits for SMEs willing to embrace this innovation.
Conclusions
The study concludes that while technological, organizational, and environmental factors affect BDA adoption in SMEs, the supportive role of management and external vendors is paramount. Investing in BDA can lead to considerable performance gains, and targeted strategies can address existing challenges, making BDA more accessible and beneficial to SMEs.
Resource
Big data analytics adoption Determinants and performances among
