How Business Analytics Systems Provide Benefits and Contribute to Firm Performance?

Ida Someh · Graeme Shanks

18 citations0/0 files storedJournal of the Association for Information Systems

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Big Data and Business Intelligence Information Technology Governance and Strategy Corporate Governance and Management

Abstract

Organisations invest in Business analytics (BA) systems to improve firm performance and gain competitive advantage. BA systems use advanced analytical tools and techniques to analyse organisational data and generate insights. Decision makers at different levels of the organisations leverage the insights and take competitive actions. In this paper, we utilise Resource-based View (RBV) and business value of IT literature to develop a research model to explain the firm performance impacts of BA systems in customer relations. The research model proposes that BA capability creates informational benefits in customer relations using two pathways: (1) Direct creation of informational benefits, and (2) Indirect creation of informational benefits through developing higher-order Analytical CRM capability. Informational benefits once created, contribute to superior firm performance. The research model is evaluated using survey data in Large US-based organisations.

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References

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