The impact of business analytics on global financial performance and economic contribution of small and mid-sized enterprises
Thunderbird School of Global Management, Arizona State University, Phoenix, Arizona, United States.
Research Article
World Journal of Advanced Research and Reviews, 2022, 16(03), 1158-1180
Publication history:
Received on 24 November 2022; revised on 27 December 2022; accepted on 28 December 2022
Abstract:
The application of business analytics has become a critical success factor for improving the performance and economic impact of SMEs in competitive markets. With advancements in digital transformation, SMEs can now leverage analytical tools to enhance decision-making, understand complex markets, and compete effectively with larger organizations. This study employed an exploratory and quantitative research approach, collecting primary data from SME owners and managers and secondary data on financial performance, market dynamics, and economic impact. Statistical and thematic analyses revealed a strong positive relationship between business analytics adoption and improved financial performance, operational efficiency, and economic contribution. Key gains were observed in inventory management, customer relationship management, and strategic decision-making, with businesses adopting analytics achieving higher revenue growth and resilience during economic volatility. The findings underscore the importance of organizational readiness, data quality, and strategic alignment in ensuring successful analytics implementation. This research highlights the managerial and policy implications of supporting SMEs in building analytics capacity to drive economic growth. Further studies are recommended to explore specific implementation models and address barriers to analytics adoption, emphasizing the pivotal role of business analytics in enhancing the competitiveness and sustainability of SMEs.
Keywords:
Business Analytics; Small and Mid-sized Enterprises (SMEs); Digital Transformation; Financial Performance; Economic Contribution; Data-Driven Decision Making; Technological Innovation; Organizational Capabilities; Analytics Integration; Operational Efficiency
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Copyright © 2022 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0