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Journal ArticleDOI

Big data and predictive analytics for supply chain and organizational performance

TL;DR: In this article, the authors investigated the impact of big data and predictive analytics (BDPA) assimilation on supply chain (SCP) and organizational performance (OP) and found that connectivity and information sharing under the mediation effect of top management commitment are positively related to BDPA acceptance.
About: This article is published in Journal of Business Research.The article was published on 2017-01-01 and is currently open access. It has received 656 citations till now. The article focuses on the topics: Organizational performance.

Summary (2 min read)

1. Introduction

  • Nevertheless, Hazen, Boone, Ezell, and Jones-Farmer (2014) claim that knowledge on how to assimilate BDPA and its influence on SCP and OP is scant.
  • Assimilation is the extent to which technology diffuses across organizational processes, and is part of three-stage post-diffusion process (i.e. acceptance, routinization, and assimilation) (Saga & Zmud, 1994; Hazen, et al., 2012) .
  • This paper contributes to the BDPA literature (Whitten, Green, & Zelbst, 2012; Ji-Fan Ren, Wamba, Akter, Dubey, & Childe, 2016) by investigating to what extent resources (connectivity and information sharing) impact on BPDA acceptance and assimilation capabilities under the mediating effect of top management commitment, and the impact of BDPA assimilation on SCP and OP.
  • This research, hence, extends those studies focusing on the role of information sharing and top management commitment on supply chain transformation and firm performance (Wu, Yeniyurt, Kim, & Cavusgil, 2006; Prajogo & Olhager, 2012; Waller & Fawcett, 2013; Hitt, Xu, & Carnes, 2015) for the achievement of competitive advantage.

2.2 Connectivity and information sharing

  • Ji-Fan Ren et al. (2016) postulate that quality, accessibility, accuracy, and relevance of IS rely on effective delivery, depends on IT infrastructure (Fawcett, Wallin, Allred, & Magnan, 2009; Brandon-Jones et al., 2014) .
  • Therefore: H1: Connectivity is positively related to information sharing.

2.3 Impact of connectivity and information sharing on BDPA acceptance under the mediation effect of top management commitment

  • 6 Impact of supply chain performance on organizational performance Choudhury, Tiwari, & Mukhopadhyay (2004) note that a firm's SCP can positively impact market performance by enhancing market share and financial performance by reducing supply chain cost.
  • Chen & Paulraj (2004) propose 'supply chain cost' and 'delivery of quality products and services in precise quantities and precise times' as measures of supply chain performance.
  • Li, Ragu-Nathan, Ragu-Nathan, & Rao (2006) argue that supply chain practices (including level and quality of information sharing) can lead to improved OP.
  • Green, Whitten, & Inman (2008) note that supply chain productivity positively impacts on OP whereas in a later study, Whitten et al. (2012) note that SCP is positively linked to OP.
  • Supply chain performance is positively related to organizational performance, also known as Therefore, H7.

3.3 Nonresponse Bias

  • A comparison of early waves (respondents who have returned their response within first three weeks), late respondents (respondents who have returned their response in the fourth week or later), and non-respondents (a subsample of 20 respondents was selected at random from the initial contact list) took place (Armstrong & Overton, 1977; Lambert & Harrington, 1990; Chen & Paulraj, 2004 ).
  • Student's t-tests were performed on early and late waves on all variables and no significant difference between respondents and non-respondents was found.
  • Demographic characteristics such as age, education, and employment status were fairly standard, and hence no further elaboration is necessary (Dickerson & Gentry, 1983) .

4. Data analysis and results

  • The residual plots by predicted value, rankits plot of residuals and statistics of skewness and kurtosis were conducted (Curran, West, & Finch, 1996) .
  • The maximum absolute values of skewness and kurtosis of the measures in the remaining dataset were 1.67 and 2.37 respectively .
  • The reported values are well within limits (univariate skewness<2, kurtosis<7) (Curran et al., 1996) .
  • Therefore neither the plots nor the statistics indicated any significant deviances from the standard values.

4.1 Measurement Validation

  • The results show that the eight factors are present and the most covariance explained by one factor is 22.25 per cent .
  • Therefore, common method bias is not likely to affect the results.

4.3 Hypothesis Testing

  • H4 regression test was performed with BDPA acceptance as independent variable and BDPA routinization as dependent variable (path A).
  • The next step was BDPA acceptance on BDPA routinization path (path C), which showed significant influence on big data assimilation ( =0.08; p<0.002).
  • Furthermore, the significance of mediating was tested (Sobel, 1982) .
  • In case of BDPA assimilation partial mediation effect exist since paths A, B and D are all significant.

5.3 Limitations, and future research

  • One limitation is the focus of the study on data connectivity and information sharing as the resources that refer to system architecture.
  • Furthermore, the sample is homogeneous and the maturity of big data has not been considered.
  • Finally, this study relies on a survey based approach.
  • To offer better insights into BDPA assimilation a mixed research approach could be useful, for instance using both a survey and semistructured interviews with managers and decision makers.

Constructs

  • (iii) There is a dedicated organizational unit for BDPA (RO3). (iv).
  • The degree to which technical support can be obtained according to organizational procedures (RO4). (v) The degree to which organization is able to hire and retain qualified people (RO5).

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Citations
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  • ...…(2015), Addo-Tenkorang and Helo (2016), Richey et al. (2016), Oesterreich and Teuteberg (2016), Küpper et al. (2016), Schrauf and Berttram (2016), Gunasekaran et al. (2016, 2017), Nguyen et al. (2017), Moghaddam and Nof (2017), Hofmann and Rüsch (2017), Choi, Wallace, and Wang (2018),…...

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TL;DR: This article seeks to make theorists and researchers aware of the importance of not using the terms moderator and mediator interchangeably by carefully elaborating the many ways in which moderators and mediators differ, and delineates the conceptual and strategic implications of making use of such distinctions with regard to a wide range of phenomena.
Abstract: In this article, we attempt to distinguish between the properties of moderator and mediator variables at a number of levels. First, we seek to make theorists and researchers aware of the importance of not using the terms moderator and mediator interchangeably by carefully elaborating, both conceptually and strategically, the many ways in which moderators and mediators differ. We then go beyond this largely pedagogical function and delineate the conceptual and strategic implications of making use of such distinctions with regard to a wide range of phenomena, including control and stress, attitudes, and personality traits. We also provide a specific compendium of analytic procedures appropriate for making the most effective use of the moderator and mediator distinction, both separately and in terms of a broader causal system that includes both moderators and mediators.

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"Big data and predictive analytics f..." refers methods in this paper

  • ...H2, H3 and H4 were tested using hierarchical mediation regression analyses (Baron & Kenny, 1986) (Table 5)....

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Abstract: This article examines the adequacy of the “rules of thumb” conventional cutoff criteria and several new alternatives for various fit indexes used to evaluate model fit in practice. Using a 2‐index presentation strategy, which includes using the maximum likelihood (ML)‐based standardized root mean squared residual (SRMR) and supplementing it with either Tucker‐Lewis Index (TLI), Bollen's (1989) Fit Index (BL89), Relative Noncentrality Index (RNI), Comparative Fit Index (CFI), Gamma Hat, McDonald's Centrality Index (Mc), or root mean squared error of approximation (RMSEA), various combinations of cutoff values from selected ranges of cutoff criteria for the ML‐based SRMR and a given supplemental fit index were used to calculate rejection rates for various types of true‐population and misspecified models; that is, models with misspecified factor covariance(s) and models with misspecified factor loading(s). The results suggest that, for the ML method, a cutoff value close to .95 for TLI, BL89, CFI, RNI, and G...

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"Big data and predictive analytics f..." refers methods in this paper

  • ...Various measurement tests (Bentler, 1990; Bentler & Bonett, 1980; Hu & Bentler, 1999) tested the unidimensionality the overall fit of the model....

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Book ChapterDOI
TL;DR: In this article, the authors examined the link between firm resources and sustained competitive advantage and analyzed the potential of several firm resources for generating sustained competitive advantages, including value, rareness, imitability, and substitutability.

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"Big data and predictive analytics f..." refers background or methods in this paper

  • ...To address this gap, this research draws on resource based view (RBV) (Barney, 1991; Barney & Clark, 2007; Peteraf, 1993; Wernerfelt, 1984), management commitment (Jarvenpaa & Ives, 1991; Liang, Saraf, Hu, & Xue, 2007) and post-adoption diffusion of innovation (Hazen, Overstreet, & Cegielski, 2012; Saga & Zmud, 1994) to develop and test a model that explains the impact of BDPA in SCP and OP....

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  • ...To address this gap, this research draws on resource based view (RBV) (Barney, 1991; Barney & Clark, 2007; Peteraf, 1993; Wernerfelt, 1984), management commitment (Jarvenpaa & Ives, 1991; Liang, Saraf, Hu, & Xue, 2007) and post-adoption diffusion of innovation (Hazen, Overstreet, & Cegielski, 2012;…...

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01 Jan 1989
TL;DR: Regression analyses suggest that perceived ease of use may actually be a causal antecdent to perceived usefulness, as opposed to a parallel, direct determinant of system usage.

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"Big data and predictive analytics f..." refers background in this paper

  • ...BDPA) is the first stage of the assimilation process (Davis, 1989; Venkatesh, Morris, Davis, & Davis, 2003), followed by routinization and assimilation (Hazen et al....

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  • ...Scholars suggest that the acceptance of technology (i.e. BDPA) is the first stage of the assimilation process (Davis, 1989; Venkatesh, Morris, Davis, & Davis, 2003), followed by routinization and assimilation (Hazen et al., 2012; Saga & Zmud, 1994)....

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TL;DR: In this article, the authors developed and validated new scales for two specific variables, perceived usefulness and perceived ease of use, which are hypothesized to be fundamental determinants of user acceptance.
Abstract: Valid measurement scales for predicting user acceptance of computers are in short supply. Most subjective measures used in practice are unvalidated, and their relationship to system usage is unknown. The present research develops and validates new scales for two specific variables, perceived usefulness and perceived ease of use, which are hypothesized to be fundamental determinants of user acceptance. Definitions of these two variables were used to develop scale items that were pretested for content validity and then tested for reliability and construct validity in two studies involving a total of 152 users and four application programs. The measures were refined and streamlined, resulting in two six-item scales with reliabilities of .98 for usefulness and .94 for ease of use. The scales exhibited hgih convergent, discriminant, and factorial validity. Perceived usefulness was significnatly correlated with both self-reported current usage r = .63, Study 1) and self-predicted future usage r = .85, Study 2). Perceived ease of use was also significantly correlated with current usage r = .45, Study 1) and future usage r = .59, Study 2). In both studies, usefulness had a signficnatly greater correaltion with usage behavior than did ease of use. Regression analyses suggest that perceived ease of use may actually be a causal antecdent to perceived usefulness, as opposed to a parallel, direct determinant of system usage. Implications are drawn for future research on user acceptance.

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