Adoption Of Big Data Analytics And Banks’ Performance: The Moderating Role Of Analytics Capability

Authors

  • Mahnoor Fatima , Bushra Malik , Huma Ayub , Abida Ellahi

Abstract

Big Data Analytics has revolutionized data-driven decision-making in the financial industry. This study investigates technological, organizational and environmental factors’ influence on the utilization and implementation of big data analytics in the financial industry. We research the mediating role of adoption of big data analytics and its effect on bank performance in the context of Pakistani banks. The study fills the gap by taking into consideration analytics capability and bank strategy alignment as moderators between big data analytics adoption and the performance of the banks. The study uses a quantitative research approach. A structured questionnaire was used to collect primary data from managers of the public and private sector banks of Pakistan. SPSS software was used for statistical data analysis. Testing of hypothesis was performed using[1] regression analysis, and mediation and moderation results were determined through Model 14 of Preacher and Hayes PROCESS macro. The results reveal that all three factors namely technological, organizational, and environmental factors influence the adoption of big data analytics which in turn positively influences the banks’ performance. Moreover, the adoption of big data analytics mediates the relationship between all three factors and bank performance. However, analytics capability and bank strategy alignment do not moderate the relation between big data analytics adoption and the performance of the banks. The study provides valuable insight for bank management regarding the benefits that big data analytics have to offer. This research also helps banking policy-makers better understand the need to align the banks’ analytics capability and strategy, which are currently lacking in the banking system.The study is the first empirical study to investigate the moderating role of analytics capability and bank strategy alignment between the adoption of big data analytics and the performance of the banks, in Pakistan.

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Published

2024-08-02

How to Cite

Mahnoor Fatima , Bushra Malik , Huma Ayub , Abida Ellahi. (2024). Adoption Of Big Data Analytics And Banks’ Performance: The Moderating Role Of Analytics Capability. Migration Letters, 21(S13), 164–184. Retrieved from https://migrationletters.com/index.php/ml/article/view/10987

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Articles