Empowering Saudi Manufacturing Small and Medium Enterprises: A Framework for Big Data Analytics Adoption and Its Impact on Decision-Making

Abstract

This study aims to explore the adoption of Big Data Analytics (BDA) in manufacturing Small and Medium Enterprises (SMEs) in Saudi Arabia. This adoption is invaluable in developing a competitive edge in the current digital economic landscape. In the face of numerous challenges in the form of limited information and lack of frameworks, this study determines the influencing factors of BDA adoption, classified into technological dimension factors, namely security, compatibility, complexity, and adaptability, organizational dimension actors, namely top management support, relative advantage, IT infrastructure and training, and lastly, environmental dimension factors, namely government IT policies, competency, collaboration, digital transformation tools. The study’s examination is underpinned by the Diffusion of Innovation (DOI) with the support of Technology, Organization and Environment (TOE) model to assess the effect of BDA adoption on the decision-making process of manufacturing SMEs. There were 384 valid responses from the reviewed 435 returned responses and data within was exposed to Partial Least Squares-Structured Equation Modeling (PLS-SEM). The findings from the analysis indicated that the factors had significant effects on BDA adoption, and in turn, the decision-making processes of the SMEs. These findings extend the literature on the BDA adoption, specifically among manufacturing SMEs in Saudi Arabia as it developed, proposed and validated a BDA adoption framework, which SMEs can use for enhancing their decision-making, strategic positioning and market competitive edge. The framework guides and assists in forming policies and practices, promoting the successful and effective BDA use in the Saudi manufacturing SMEs sector.