Application of big data analytics and organizational performance: the mediating role of knowledge management practices

Abstract

Drawing from tenets of the resource-based theory, we propose and test a model that examines the relationship between the application of big data analytics (ABDA) and organizational performance (OP) in small and medium enterprises (SMEs). Further, this study examines the mediating role of knowledge management practices (KMP) in relation to the ABDA and OP. Data were collected from respondents working in SMEs through an adapted instrument. This research study adopts the Baron–Kenny approach to test the mediation. The results indicated that the ABDA had a positive and significant impact on OP. Also, KMP had partially mediated the relationship between ABDA and OP in SMEs. The dataset was solely comprised of SMEs from Pakistan administered Kashmir and may not reflect the insights from other regions. Hence limits the generalizability of the results. Findings highlight both strategic and practical implications related to decision making in organizations for top management, particularly in developing countries. This study attempts to contribute to the literature through novel findings and recommendations. These fallouts will help the top management during the key decision-making process and encourage practitioners who seek competitive advantage through enhanced organizational performance in SMEs.