Strategic value of data analytics in interorganizational relationships

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Mohammad Daneshvar Kakhki (Creator)
The University of North Carolina at Greensboro (UNCG )
Web Site:
Hamid Nemati

Abstract: Researchers suggest that data analytics (DA) enhance decisions related to interorganizational relationships (IOR) and lead to reduced risk and improved performance. However, and despite this potential, firms face challenges regarding effective use of their DA capabilities to enhance their IORs. The massive investment in DA, as well as the need for an efficient use of DA in IOR settings, create the potential opportunities for two streams of research: a deeper understanding of business value of DA in IOR; and a systematic examination of DA’s strategy for an enhanced alignment with IORs. Despite the published scholarly works in these two research streams, the complexity, diversity, and newness associated with DA technologies make our understanding of the business value of DA in IOR and DA strategy for IOR incomplete. First, our understanding of why and how DA impact IOR performance is inadequate and fragmented. Second, the focus of the preponderance of published empirical papers in understanding the value of DA is at the operational level, and the strategic implications of DA capabilities in IOR are not addressed. Third, the literature fails to consider the inherent heterogeneity among the user base of DA systems, and consequently, the findings are not generalizable. Finally, the literature fails to address the impact of external factors, such as complexity and volatility on DA strategy. In this dissertation, I attempt to contribute to the literature by focusing on these research gaps and investigating them in three studies. In the first study, a holistic value-view of a firm’s supply chain enabled by DA for improved business performance, is presented based on two complementary views of market-oriented coordination and strategic supplier partnership. The study discusses how DA capabilities impact the constituents of this complementary view of supply chain to amplify business performance. I propose a theoretical model of the effect of DA capabilities on a firm’s co-creation of value, with its partners for business performance. Then, I test the model empirically based on a survey of 198 practitioners. My findings show that DA capabilities improve upstream and downstream integration and leverage the co-creation of value. The second study provides a better understanding of the impact of DA on interorganizational collaborations by answering two fundamental research questions: “How does a firm use its DA capabilities to improve collaboration and enhance performance?” and “What is the impact of DA capabilities on a firm’s collaboration and performance?” To answer these questions and to provide a deeper insight from multiple perspectives, I utilized a mixed method research by conducting a thorough content analysis of 34 published case studies, followed by a confirmatory research based on a survey of 210 practitioners to empirically test the insights generated from my content analysis. My findings identify several paths to improved performance using DA capabilities. My analysis suggests that DA capabilities, used appropriately in an interorganizational collaborative environment, lead to reduced costs and the need for required working capital and ultimately better performance through improved collaborative relationships such as planning and scheduling. In the third study, I expand the results of the two prior studies by analyzing the DA strategic focus. I employ an agent-based simulation to test different DA strategies in various business environments that are identified by levels of complexity and dynamism. My findings indicate that optimum DA strategy has a quadratic relationship with the levels of complexity and dynamism, which explains the prior contradictory findings of the IS literature. These three studies contribute to the business value of IT and IS strategy literatures by investigating the business value of DA in IOR settings, identifying impacts of DA on value co-creation in IORs and determining a suitable DA strategy based on various environmental factors.

Additional Information

Language: English
Date: 2018
Business Value of Information Technology, Complexity Theory, Data Analytics, Information Systems Strategy, Interorganizational Relationships, Supply Chain Adaptability
Business logistics
Business enterprises
Business $x Data processing

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