The effect of organizational inertia on the adoption of big data analytics

Abstract

Purpose – This research aims to examine the impact of organizational inertia (OI) on the adoption of big data analytics (BDA), considering OI as a second-order formative construct composed of insight inertia, action inertia and psychological inertia. The study also explores the moderating effect of department leader power on the relationship between OI and BDA adoption. Design/methodology/approach – The study uses a mixed-methods approach, combining quantitative partial least squares structural equation modelling (PLS-SEM) analysis with qualitative interviews, highlighting BDA’s greater susceptibility to internal inertial forces than other IT technologies, due to its emphasis on decision-making. Findings – Hypothesis testing using PLS-SEM demonstrates significant contributions from these OI dimensions and confirms a negative relationship between OI and BDA adoption, moderated positively by department leader power. Social implications – Overcoming OI constrains BDA adoption in Latin America. Strengthening data-driven capabilities improves service efficiency, innovation and competitiveness, which enhances employment quality and access to better services. These advances contribute to inclusive development and support SDG 9 and SDG 8. Originality/value – This study contributes to understanding and informing strategies to overcome organizational resistance, promote BDA adoption and advance digital transformation to improve productivity and societal outcomes in Latin America.