The Impact of Business Analytics in Supply Chain Network: Conceptualization for Business Analytics Capability and Supply Chain Performance Implications

The purpose of this study is to empirically investigate the relationship between organizational business analytics capability and supply chain performance in order to identify the impact of business analytics in supply chain network. Specifically, drawing on literature streams in Supply Chain Operations Reference Model and Information Processing Theory, this study conceptualizes the notion of business analytics capability in supply chain network, develops its structure as a reflective model, and tests the constructs and operational measures in the model. And then this study investigates the relationship between analytics capabilities in the plan, source, make and deliver area of the supply chain network and its performance using business process orientation and information system support as moderators that form the basis of our theory. Conducting an empirical study of 170 Korean manufacturing firms, this study, through the successive stages of measurement model analysis, provides empirical evidence for modeling reflective indicator and construct of business analytics capability in supply chain network. As a result, the construct of business analytics capability is posited to reflect a combination through analytics capabilities in the plan, source, make and deliver area of the supply chain network. And the findings suggest the existence of a statistically significant relationship between business analytics capabilities and supply chain performance. The moderation effect of information systems support is considerably stronger than the effect of business process orientation. These findings provide a better understanding of the areas in supply chain network where the impact of business analytics may be the strongest.