Success Factors Affecting the Intention to Use Business Analytics: An Empirical Study

Abstract

ABSTRACT In the era of knowledge-based economy, the firm’s ability to derive actionable insights from big data can be a game changer. Such ability can be developed and nurtured by utilising BA which is designed to help business executives and policy makers make well-thought and informed decisions. To have a clear picture of what will lead to the serious consideration of BA as a business intelligence tool, this paper identifies contextual variables that include privacy, security, risk concerns, information technology (IT) capability and perceived value that may significantly influence the firm’s intention to use BA. This paper conducted confirmatory factor analyses and used the structural equation model to determine what either motivate or inhibit the BA adoption Through a series of hypothesis testing, we discovered that higher security and risk concerns along with a lack of IT capability became important deterrents to BA adoption. Also, we found that firms which recognised the value of BA were more inclined to adopt BA than the others. This paper is one of the first attempts to develop practical guidelines for the potential adopters of BA based on the empirical study of BA practices among the Korean firms.