TY - JOUR
T1 - The missing link between analytics readiness and service firm performance
AU - Auh, Seigyoung
AU - Menguc, Bulent
AU - Sainam, Preethika
AU - Jung, Yeon Sung
N1 - Publisher Copyright:
© 2021 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
PY - 2022
Y1 - 2022
N2 - Although the importance of analytics is a veritable mantra in today’s business environment, little academic research has been devoted to understanding the degree to which firms are ready to incorporate an analytics strategy into their business model and how and when analytics readiness (AR) translates into firm performance. Three studies address this void. In Study 1, we conduct interviews with MBA students from the United States to assess the AR construct. In Study 2, we develop and validate an AR scale using data from Turkish service firms. In Study 3, we test how and when AR translates into firm performance using data from South Korean service firms. The results contribute to the analytics literature in the following ways: First, AR is a higher-order construct comprised of five lower-order dimensions: cultural readiness, leadership commitment, strategic alignment, structural readiness, and talent capacity. Second, an exploratory (exploitative) market learning strategy amplifies (mitigates) the effect of AR on relative emphasis on data- (vs. instinct-) driven decision making. We discuss theoretical and managerial implications along with limitations and directions for further research.
AB - Although the importance of analytics is a veritable mantra in today’s business environment, little academic research has been devoted to understanding the degree to which firms are ready to incorporate an analytics strategy into their business model and how and when analytics readiness (AR) translates into firm performance. Three studies address this void. In Study 1, we conduct interviews with MBA students from the United States to assess the AR construct. In Study 2, we develop and validate an AR scale using data from Turkish service firms. In Study 3, we test how and when AR translates into firm performance using data from South Korean service firms. The results contribute to the analytics literature in the following ways: First, AR is a higher-order construct comprised of five lower-order dimensions: cultural readiness, leadership commitment, strategic alignment, structural readiness, and talent capacity. Second, an exploratory (exploitative) market learning strategy amplifies (mitigates) the effect of AR on relative emphasis on data- (vs. instinct-) driven decision making. We discuss theoretical and managerial implications along with limitations and directions for further research.
KW - Analytics readiness
KW - analytics
KW - data-driven decision making
KW - exploitative learning
KW - exploratory learning
UR - http://www.scopus.com/inward/record.url?scp=85118436155&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85118436155&partnerID=8YFLogxK
U2 - 10.1080/02642069.2021.1998461
DO - 10.1080/02642069.2021.1998461
M3 - Article
AN - SCOPUS:85118436155
SN - 0264-2069
VL - 42
SP - 148
EP - 177
JO - Service Industries Journal
JF - Service Industries Journal
IS - 3-4
ER -