The Transformative Impact of Business Analytics Adoption on Competitive Advantage in the E-Commerce Industry: A Strategic Perspective

Abstract

In the current era marked by disruption and uncertainty, the reliance on top executives' intuition, experience, and education necessitates augmentation with pertinent data to enhance firm competitiveness. Acknowledging the pivotal role of data in business, companies of varying sizes recognize the significance of data-driven and purpose-driven business analytics for gaining a competitive edge. Despite this awareness, organizations often underutilize data to foster a competitive advantage. This study delves into the strategic approach of maximizing data utilization, referred to as business analytics adoption (BAA), as a transformative catalyst for business growth and the establishment of competitive advantages. The primary objective of this research is to investigate the impact of the Technological, Organizational, and Environmental (TOE) framework, mediated by business analytics adoption (BAA) and dynamic capability, on achieving competitive advantage (CA) performance, specifically within the context of an E-commerce company. The study involved 327 E-commerce firms. The collected data underwent processing and analysis through Structural Equation Modeling (SEM). The findings of this study reveal that the technological, organizational, and environmental factors positively and significantly influence business analytics adoption and dynamic capability. Business analytics adoption serves as a mediator between technological factors and dynamic capability, as well as organizational factors and dynamic capability. Additionally, dynamic capability mediates the relationship between business analytics adoption and competitive advantage. Both business analytics adoption and dynamic capability exhibit positive and significant effects on competitive advantage.