Organizational Dominant Logic and Strategic Diversification: The Mediating Role of BI&A Competencies

Abstract

Business intelligence and analytics (BI&A) competencies are presented as a strategic factor in managing sustainable competitive advantage. Similarly, dominant logic is presented as a set of beliefs and practices within organizational culture, and strategic diversification is the degree of development for market diversification. This research explored whether BI&A competencies mediate the relationship between dominant logic and strategic diversification in a Chilean SME. This was a non-experimental study with a cross-sectional design. A non-probabilistic sample of 244 employees from the SME was collected. Three instruments were used to measure the variables: the Organizational Dominant Logic Scale, the Organizational Strategic Diversification Scale, and an instrument that measures BI&A competencies. The results identified a proactive dominant logic in the organization, moderate strategic diversification, and moderate consolidation in BI&A competencies. Likewise, in relation to the mediation analysis, it was found that the indirect effects were not statistically significant at the 0.05 level, while the direct effects were, therefore, proactive dominant logic is related to strategic diversification. In conclusion, BI&A competencies could not mediate the relationship between proactive dominant logic and strategic diversification.