The impact of organizational capabilities on business analytics use: the moderating role of environmental dynamism

Adopting the dynamic capabilities (DC) perspective, this study proposes a model to assess the impact of organizational capabilities on business analytics (BA) use and addresses the moderating role played by environmental dynamism (ED). Based on 457 surveys of BA experts at Saudi Arabian firms and a partial least squares analysis of the model, the results show that data-driven decision-making has a direct and significant influence on BA use. The findings also show that ED has a direct influence on BA use and positively moderates the link between the knowledge aspect and BA use, which indicates that knowledge is required in a volatile environment for successful BA use. Together, these findings extend the dynamic capability view and provide a theory-based perspective on the impacts of organizational aspects of BA use, building a better understanding of the DC of firms and providing guidance to align the necessary capabilities in dynamic environments.