Business Analytics Adoption Process: An Innovation Diffusion Perspective

Abstract

Although business analytics (BA) have been increasingly adopted into businesses, there is limited empirical research examining the drivers of each stage of BA adoption in organizations. Drawing upon technologicalorganizational-environmental framework and innovation diffusion process, we developed an integrative model to examine BA adoption processes and tested with 170 Korean firms. The analysis shows data-related technological characteristics derive all stages of BA adoption: initiation, adoption and assimilation. While organizational characteristics are associated with adoption and assimilation stage, only competition intensity in environmental characteristics is associated with initiation stage. Our findings help practitioners and researchers to understand what factors can enable companies to adopt BA in each stage.