Business analytics and firm performance: The mediating role of business process performance

Abstract

Due to the rapidly increasing popularity of business analytics (BA), investigation of the antecedents/determinants of the adoption of BA and the subsequent impact of the same to the firm performance has become an important research topic. Drawing on the fundamentals of the resource-based view (RBV), this study proposes a model that examines the effects of the BA adoption on business process performance (BPER) and the mediating role that BPER plays in the relationship between the adoption of BA and firm performance (FP). Based on the data collected from 204 medium- to high-level business executives in various industries, the results of this empirical study indicate that the adoption of BA positively influences BPER. There is also positive relationship between BPER and FP. Finally, the results show that BPER fully mediates the relationship between BA adoption and FP.