Unpacking the "O" in VRIO: Organizational Deployment of Data Analytics and its Effect on Firm Performance

Abstract: Drawing on the resource-based view (RBV) and the literature on data analytics (DA), this study provides a twofold contribution by studying the intersection between the RBV theory and DA. A review of past research unveils an under-researched and -theorized factor in the RBV's VRIO acronym, the "O" - organizational deployment. Furthermore, despite the high operational and strategic impacts promised by adopting DA, previous research has mainly focused on the technological aspects of the phenomena, ignoring vital managerial challenges. Consequently, this study fills a research gap within each respective field by investigating which organizational deployment practices of data analytics contribute to a firm's sustained competitive advantage. In total, 247 respondents contributed to a quantitive study where the primary findings show that the most influential and significant organizational practices are education and knowledge development and data-driven culture. Meanwhile, the planning and controlling practices of DA had an insignificant effect on firm performance. The study makes a theoretical contribution by providing insights into the under-researched "O" and offering a new perspective by linking RBV and data analytics literature. Second, this study makes an empirical contribution by testing the six most common organizational practices of DA and their effect on firm performance from an RBV and dynamic capabilities perspective.