Volume 8, Issue 5, May – 2023 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

The Adoption of Big Data Analytic on Performance:

Integrated Model
Djoko Setyo Widodo
Faculty of Economics and Business, Jakarta Global University, Jakarta, Indonesia

Abstract:- Based on the technology-organization- Big data has become one of the most commonly used
environment framework and the resource-based view technologies/services for businesses to obtain and retain a
theory, the study proposes an integrated model to analyze competitive advantage. Big data is defined broadly as "a
determinant factors and effects of Big Data Analytic collection of subject-oriented data comprised of information
adoption in Indonesia's creative industry of SMEs. We from a specific time period that aids management decision-
used a questionnaire survey to collect data while using the making" [9]. According to International Data Corporation
quantitative method. The research model was validated (IDC) [10], the global market for big data was valued at USD
using responses from 119 SMEs in Indonesia's creative 66 billion in 2020 and is expected to grow at a USD 157
industry, and structural equation modeling by Smart PLS annual rate until 2026. Many businesses believe that big data
is used. Two significant findings emerged from this study. adoption is crucial and has enormous potential. Regardless of
We discovered that relative advantage, organizational the theoretical benefits of BDA implementation, numerous
readiness, top management support, and government studies have revealed that not all businesses are adopting big
regulations all have a significant impact on Big Data data. For example, Choi et al. [11] reported that there is a
Analytic adoption. The study's findings also show a suspicious notion that 80% of organizations will fail when
strong and positive relationship between Big Data attempting to leverage big data if they do not have well-
Analytic adoption and firm performance. Finally, it was defined strategic goals. Most firms' use of big data has
discovered that knowledge management had a mediating recently been comparatively lower [1, 12]. Many businesses
effect on the relationship between Big Data Analytic have not progressed beyond the early adopter stage [13].
adoption and firm performance. The data revealed how Despite the fact that big data adoption is becoming more
businesses could increase their use of Big Data Analytics popular as an effective tool for new business industry
to improve firm performance. The current study adds to formation and business optimization, only a few firms have
the small but growing body of literature on the factors already applied it and achieved the expected results [14, 15].
that influence technology acceptance. The study's findings
can be used as a resource by scholars and practitioners Big data is broadly recognized as one of the pillars of
interested in big data adoption in developing countries. future technology/service, providing organizations with
enormous business value [16]. Despite the fact that BDA has
Keywords:- Component; Big Data Analytics; Performance; numerous benefits, few studies have been conducted on how
TOE Framework; RBV Theory; Creative Industry; SMEs. businesses can engage it and generate commercial value from
it. As a result, there is confusion about how organizations
I. INTRODUCTION approach the process of BDA adoption and value creation [1,
9]. Extensive prior research has also suggested that many
With the rapidly developing of big data in recent years, industries would be unable to take advantage of the
practitioners and researchers must consider how to opportunities that BDA could provide. Numerous researchers
incorporate the adoption of advanced technologies into their have questioned the idea that BDA can help companies
competitive strategies. Big data in business decision-making enhance their performance. [1, 9]. As a result, there may be a
has recently received a lot of attention [1, 2], and the number lack of knowledge and conflicting opinions about how firms
of companies investing in big data analytics to improve their can use BDA to profit from this type of investment.
competitive advantage and performance is increasing. Furthermore, enterprises such as SMEs in the creative
Furthermore, big data analytics (BDA) are frequently industries have not sufficiently investigated the potential of
regarded as a critical corporate asset, with decision makers BDA. In this study, we look at how BDA adoption can benefit
focusing on gaining timely insights and generating a high SMEs. As a result, more research is needed to identify the
level of income [3-5]. Big data are the interactions between benefits and drawbacks of BDA adoption in terms of business
employees and customers that are recorded in a company's performance. [13].
system and provide actionable, accurate, descriptive, and
interpretive results [6]. Because of the sizable amount of big However, although research has been conducted on
data generated at a high rate and the diversification of BDA in various sectors, it has presents contradictory results
information assets, offering personalized information and regarding the impact of BDA on organizational performance,
knowledge remains difficult [7, 8]. for example prior research on the subject indicates that using
big data as a strong foundation to improve performance
benefits organizations [14, 16]. Most people report a positive

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Volume 8, Issue 5, May – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
relationship between big data success and business impact As the BDA appropriate environment, scholars and
[17]. Big data has been used by larger companies to achieve a practitioners should understand how BDA adds value and has
variety of goals, include but are not restricted to estimating an impact on businesses. As a result, the goal of this study is
emerging trends and analyzing consumer behavior and to address this quandary by introducing and evaluating a fully
experience to investigate opportunities for improvement [18]. integrated BDA adoption and causality tests from the creative
Others consider its impact on organizational performance to industry sector's perspective. The following significant study
be diffusing (19, 20, 21). Despite the increasing number of objectives emerge from the preceding discussion:
research studies examining BDA and its effect on  To analyze the determinant factors of BDA adoption;
performance, the main obstacles to BDA adoption among  To identify the effect of BDA adoption on organizational
SMEs are a lack of knowledge and resource limitations for big performance; and
data (22, 23, 24, 25) systematically reviewed BDA research  To examine the moderating impact of knowledge
and discovered that research on the drivers of BDA adoption management on the relationship between BDA adoption
among SMEs are rare, and little attention has been given and organizational performance.
within SMEs using the TOE framework. (26). As a result, in
this study, we use a technological, organizational, and II. LITERATURE REVIEW
environmental (TOE) paradigm to investigate factors
influencing big data adoption in the creative industry of A. Theoretical Foundation
SMEs. Because of its flexibility in assisting in understanding The TOE (Technology-Organization-Environment)
the degrees of technology adoption across firms, the TOE model was first introduced by [40]. The TOE model was then
model is suitable for this scenario [13, 27, 25]. further developed by [41]. The TOE Framework is a set of
factors that predict the adoption rate and barriers of hospital
Furthermore, while several studies have been conducted information systems. This framework shows that adoption is
to examine BDA adoption during the strategy and techniques influenced by technological developments [42], organizational
(pre-adoption) and formal adoption phases [28, 25], little conditions, business and organizational reconfiguration [43],
attention has been paid to post-adoption challenges and and industrial environment [44]. In other words, the TOE
consequences, especially in the context of emerging market model incorporates a schematic of technological
economies [3,13,17,25]. The existence of a global during the characteristics, organizational factors, and elements of the
post-adoption phase and its effect on business performance, macro environment [45]. TOE identifies three contexts that
especially in a developing country such as Indonesia, affect the adoption and implementation of corporate
represent a crucial and appropriate concern for research as innovation, namely: the technological context, which
part of a strategy to thoroughly examine the effects of BDA illustrates that adoption depends on technology both from
adoption on SMEs in creative industries. outside and from within the company, such as compability
(both technical and organizational), complexity, triability
In addition to investigating the post-adoption phase of (trial/experimental), and observation (visibility/imagination);
BDA, the current study investigates the contingent effect of organizational context, describing the company's business
knowledge management, which has been used as a scope, top management support, organizational culture,
contingency variable in previous studies. According to [29], managerial structure complexity measured from
there are reportedly such little studies into BDA knowledge centralization, formalization, differentiation, quality of human
management and its integration in to the knowledge resources, and problem size; environmental context related to
management, despite the obvious need for a well-constructed facilities and factors inhibiting company operations such as
and coherent method. To put it another way, few research competitor pressures, customers, socio-cultural issues,
studies have tried to shed some light on the relationship government encouragement, and technological infrastructure
between knowledge management processes and such as consulting services through ICT [46].
organizational performance [30]. Similarly, while some
research provides empirical evidence for the relationship Likewise [47] stated that the TOE Framework identified
between BDA and knowledge management processes, as well three aspects of the context that affect the process of a
as the mediating effect of knowledge management processes company adopting and implementing technological
between BDA and organizational performance [31, 32, 33], innovations: technological context, organizational context,
other research presents more critical views [34, 35, 36]. and environmental context. The technological context
According to some studies, BDA and knowledge management considers available technology important to the company,
do not always result in improved organizational performance both internal and external, which may be useful in increasing
or that knowledge management processes have a partial organizational productivity. Organizational context is defined
mediating effect between BDA and organizational in terms of the resources available to support the acceptance
performance [37]. Meanwhile, other studies [38] find positive of innovation. These criteria include company size and scope,
associations between each other, and some have suggested centralization, formalization, and the complexity of the
validating the mediating role that knowledge management managerial structure as well as the quality and availability of
processes could even interact in relation to performance and the company's human resources. Environmental context
innovation [39], in this particular instance, BDA. represents the setting in which a company does business, and
is influenced by the industry itself, its competitors, the
company's ability to access resources provided by others, and
interactions with government

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Volume 8, Issue 5, May – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
The TOE framework has been used to explain and organizational factors as drivers of advanced technologies
intercompany adoption. Understanding of e-business adoption diffusion.
in European countries [48], A multi-perspective framework
[49], Cloud computing [50], ERP solution (46), Smart City Another research technique has broadened the TOE
Readiness Mode [51] and Big Data Analytics [26]. In each framework by taking into account the impact of technology
study the three elements of technology, organization and usage. Businesses create benefits and influence, according to
environment have been shown to influence the way RBV logic, by combining different resources that are either
organizations identify the need to seek out, and adopt new economically difficult to replicate or valued throughout other
technologies. In each of the empirical studies that tested the businesses [17, 59]. Furthermore, the impact of resources is
TOE framework, researchers used slightly different factors for determined by an organization's ability to leverage an
technological context, organizational context, and invention rather than the innovation itself. [57]. Thus, the
environmental context. Different types of innovation have extent to which an innovation/technology is applied in
different factors that influence adoption. Likewise, differences important operations of business value chains determines the
in cultural and industrial contexts will also have different impact of innovation. Nonetheless, this concept has been used
factors. Thus research studies employ a variety of factors for in very few DBA studies. As a result, we focus on the
technological, organizational, and environmental contexts. adoption and impacts of BDA in this study, filling a gap in the
literature. To summarize, the TOE paradigm has influenced
The Resource Based View (RBV) theory was first the majority of previous studies in explaining the drivers of
pioneered by [52]. The RBV theory views that the company's technology adoption. Similarly, based on previous research,
resources and capabilities are important to the company, the RBV has been applied to forecast the consequences of
because they are the main or basis of the company's technology adoption.
competitiveness and performance. Based on this resources
based theory, an organization can be assessed as a collection The integration of TOE and RBV technological factors
of physical resources, human resources, and organizational can provide a comprehensive study framework. Researchers
resources [53]. The indicators for measuring the RBV strategy present a conceptual model (Figure 1) based on the TOE
consist of two indicators, namely: resources and capabilities model in this study, attempting to draw on the large number of
[54]. The RBV defines a firm's performance in terms of its studies on BDA and TOE variables for technology adoption.
primary resources [55]. Actual and intangible assets such as A variety of TOE characteristics have influenced technology
information, knowledge, and business procedures and routines adoption. Researchers look into technological (relative
are examples of company resources [56]. As a result, advantage and compatibility), organizational (top
valuable, uncommon, one-of-a-kind, and non-substitutable management support and organizational preparedness), and
resources can provide organizations with a competitive environmental factors (government regulations) in this study.
advantage by creating value and improving firm performance ”.
[55]. These advantages can be sustained over long periods of
time, allowing the firm to protect itself from resource A. Research Framework and Hypotheses
imitation, transfer, or substitution [57]. Empirical research has The association of the TOE model will be adapted in this
validated this hypothesis [13, 17]. Data are increasingly study to describe the antecedents of BDA adoption. As a
viewed as an essential intangible resource that can be applied result, researchers created a theoretical framework based on
to enhance organizational performance in the BDA context the TOE framework and RBV theory, which was then turned
[58, 59]. into a research framework. The variables in this study were
classified as technological, organizational, and environmental
This study employed an integrated model of TOE and contexts. The technological characteristics (factors) that
RBV. Concerning the first method, prior research indicates determine the degree of BDA relevance to SMEs are relative
that the TOE framework is an excellent starting point for advantage and compatibility. Organizational readiness and top
investigating BDA adoption [13]. The TOE framework management support are organizational characteristics
identifies three different types of factors that influence how (factors) that indicate a SMEs readiness to implement BDA.
businesses use technology. First, perceived innovation Furthermore, government assistance is an environmental
features such as compatibility, complexity, trialability, characteristic (factor) that describes the amount to which
observability, and relative advantage are defined by the SMEs receive assistance as an external requirement for BDA
technological context. According to a meta-analysis adoption. Nevertheless, because an additional objective of this
conducted by [60], relative advantage is the most common study is to examine the effect of BDA adoption on company
significant and relevant positive factor to be analyzed in this performance, the causality of RBV theory will be examined,
research. Second, the organizational context indicates the as proposed in various previous studies. Taking the foregoing
number of slack resources that are available internally. Top into account, the RBV theory is used in this work to validate
management support and organizational readiness have been the existence of a relationship between BDA adoption and
identified as the most important factors in technology company performance. According to the RBV, the much more
adoption, which is also addressed in this study. Third, substantial and widely spread the adoption of BDA, the
"environmental context" refers to "the domain in which a greater the chances of a business making a valuable, almost
practices that perpetuate its industry and business, rivals, and special, and long-lasting impact. As a result, researchers argue
government contacts." The method is consistent with Rogers' in this article that there is a theoretical relationship between
method [61], which emphasizes technological characteristics BDA adoption and company performance.

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Volume 8, Issue 5, May – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Based on various studies, this conceptual framework H3. Top management support has a significant effect on BDA
focuses on the use of BDA. For example, [62] conducted a adoption
study in Korea to identify the critical components of BDA
acceptance. The study's findings divided the adoption The ability and desire of a company to adopt new
variables into three categories: technology factors, technologies is referred to as organizational readiness. It
organizational factors, and environmental factors. Similarly, denotes a company's ability to manage and spend in the
[63] investigated the decision to implement BDA in Lebanese adoption of new technologies, which includes technical IT
firms using the TOE and contextual theory. The results ability and expertise [13]. Academics believe that
indicated that technological factors such as complexity and organizational readiness is required for BDA adoption in
security influenced BDA adoption positively. Besides that, the industry analytics and big data [64]. [13] discovered that
findings showed that organizational characteristics such as organizational readiness has a strong and positive relationship
prior IT expertise and manager endorsement influenced the with the adoption of new technologies in the context of small
decision to accept BDA significantly. The following is a more businesses, and that organizational readiness is one of the
detailed explanation regarding the relationship between most important factors or requirements for BDA adoption.
existing factors based on research that has been conducted. Similarly, [26] demonstrated that organizational Context data
demonstrated that organizational readiness significantly drives
The technological clearly stated the exogenous and BDA adoption. As a result, the following hypothesis has been
endogenous features of technology that are required for its proposed:
acceptance. Relative advantage is one such factor [13, 26, 53]. H4. Organizational readiness has a significant effect on BDA
The perceived benefits of new technologies in terms of adoption.
specific organizational performance have a significant impact
on organizational adoption intentions [64, 65]. The level to One of dimension for environmental context is
which technology perceived as outstanding is accepted government regulation. The literature has shown that
relative to other aspects of existing technology used in government plays a vital role in the technology adoption [60].
industries, as well as the benefits it brings to the organization, According to the TOE, governmental restrictions are external
is referred to as relative advantage [61, 66]. According to [13], components that have the capacity to influence big data
organizations are prepared to adopt technology if the benefits adoption. More precisely, government laws may restrict or
are worth the disadvantages of current technology. [26] also encourage enterprises to embrace innovative technology
demonstrated that technological factor data demonstrated that [60,70]. The acceptance of big data by firms may increase if
relative advantage significantly influences BDA adoption. As government regulations, policies, legislation, and standards
a result, the hypothesis is formulated: support and encourage the adoption of new technology [71].
H1. The relative advantage has a significant effect on BDA According to previous research [13,71], organizations that
adoption. face a high degree of government pressure and restrictions are
more likely to use cloud technology [72]. According to an
The degree to what new systems/technologies are related initial review of big data adoption research, government
with an organization's existing systems/technologies is legislation in the form of incentives and assistance increases
referred to as compatibility [67]. Compatibility has been big data adoption and acceptability. So did [26] also prove
determined to be one of the most important factors that Technological factor data showed that relative advantage
influencing technology adoption [61], and empirical studies significantly drives BDA adoption. As a result, we suggest
indicate that it was among the in this regard [56]. However, that:
according to [26], data from technological factors show that H5. Government regulations have a significant association
compatibility is not significantly associated with BDA with big data adoption.
adoption. As a result, the following hypothesis is proposed:
most important factor in determining on big data [64,68]. To BDA and its application in order to achieve higher
support an advantageous compatibility-big data adoption organizational performance is grounded in resource-based
relationship, companies can enhance the flexibility of their theory [77], which states that a firm’s performance depends
procedures and policies on the extent to which it simultaneously possesses valuable,
H2. The compatibility has a significant effect on BDA rare, imperfectly imitable, and appropriately organized
adoption. resources [78,79]. In line with the resource-based theory,
BDA is considered a resource that provides competitive
Top management support and organizational readiness advantages by being valuable and possessing key capabilities
were identified as factors influencing BDA adoption in the that generate superior organizational performance [80].
current study. Top management support is defined as the Therefore, the following hypothesis is proposed:
degree to which managers recognize and accept the new H6. BDA adoption has a significant positive impact on firm
system's technological capabilities (BDA) [13]. Prior research performance.
has found that senior management support is an important
predictor of appropriate innovation adoption [67,69]. [26] also According to [29], there is reportedly such little studies
demonstrated that data from organizational Context factors into BDA knowledge management and its integration in to the
revealed that management support significantly drives BDA knowledge management, despite the obvious need for a well-
adoption. As a result, the following hypothesis is proposed: constructed and coherent method. To put it another way, few
research studies have tried to shed some light on the

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Volume 8, Issue 5, May – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
relationship between knowledge management processes and Indonesia’s creative industry of SMEs. Approximately 200
organizational performance [30]. Similarly, while some questionnaire surveys were distributed, and 119 were
research provides empirical evidence for the relationship returned.
between BDA and knowledge management processes, as well
as the mediating effect of knowledge management processes The questionnaire consists of items that were adapted
between BDA and organizational performance [31, 32, 33], from previous research in the literature. In the TOE model, the
other research presents more critical views [34, 35, 36]. exogenous factors were split into technological,
According to some studies, BDA and knowledge management organizational, and environmental characteristics variables,
do not always result in improved organizational performance and the items evaluating big data adoption. Two constructs
or that knowledge management processes have a partial were included in the technological factors: relative advantage
mediating effect between BDA and organizational and compatibility. The items were collected from [13, 26]. In
performance [37]. Meanwhile, other studies [38] find positive addition to the items mentioned above, the organizational
associations between each other, and some have suggested elements of Top management support and organizational
validating the mediating role that knowledge management readiness were assessed using items from [13, 26]. In contrast,
processes could even interact in relation to performance and the environmental variables of government support were
innovation [39]. Therefore, the following hypothesis is measured using items from [26, 60, 71]. Furthermore,
proposed: knowledge management items were adopted from [29]. In the
Hypothesis 7. The adoption of BDA positively influences present study, we used five-point Likert-Scale, with responses
knowledge management ranging from one (strongly disagree) to five (strongly agree).
Hypothesis 8. Knowledge management positively influence The Cronbach’s alpha (α) for all constructs surpassed 0.70,
organizational performance indicating a high level of dependability, as per [73].
Hypothesis 9. Knowledge management has a mediating effect
between the adoption of BDA and the organizational For hypothesis testing, the partial least square structural
performance. equation modeling (PLS-SEM) method was employed in this
work. PLS is a multivariate statistical method that enables the
A conceptual framework (refer to Figure 1) was estimation of numerous associations in a given model between
developed as a result of a study of previously investigated one or more exogenous factors and one or more endogenous
factors and was used as a guideline during the research factors. According to the explanations above, PLS-SEM
process. The three contexts of elements in Figure 1's model methods were used to evaluate the proposed hypotheses and
are technological, organizational, and environmental. analyze the acquired data because this research model
incorporates nine latent components, which add to the
complexity of the suggested model. This research is
exploratory in nature and employs the TOE framework, and
the RBV. Integration necessitates the employment of a path
modeling approach in response to the suggestion of various
researchers that the PLS-SEM technique utilized in the study
is an extension of an existing theory or prediction-oriented in
nature. This approach was used to validate the reliability and
validity of the variables before analyzing the structural model.

IV. RESULTS AND INTERPRETATION

A. Measurement Model Assessment

The Assessment of measurement models is a
precondition and the initial stage in producing findings in
PLS-SEM. Assessment focuses on investigating the reliability
and validity of measures. The assessment of the measurement
Fig 1. The proposed conceptual model. model in PLS-SEM changes based on whether the
measurement model contains formative or reflecting
III. PREPARE METHODOLOGY measurements. The reflecting measurement approach often
assumes that the indicators originate from the concept
This research used quantitative method, so a (interchangeable) and that all indicators assess the same
questionnaire was utilized to collect data in this research. The causal reality. In contrast, the formative measurement
questionnaire distributed to the respondents which is got from approach assumes that indicators generate a construct of
sample of population. The respondents were creative industry interest. Thus, formative indications are not interchangeable
of SMEs owners or managers, as they are the people who and are discarded as variable indicators. Owing to these
know the most about the research topic and are more likely to differences, each measurement model contains different
have accurate perceptions of BDA adoption in creative criteria. The major issues associated with the reflective
industry of SMEs because they usually play an important role measurement paradigm are composite reliability, construct
in decision-making tasks. Therefore, in the present research, convergence, discriminant validity, and factor loadings.
we applied the simple random sampling method in the

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Volume 8, Issue 5, May – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Nevertheless, the nature of the measures for all variables 0.720 and 0.849 (Table 1), so it can be said that all of these
in the current study is reflective. All study factors (variables) constructs are reliable. Meanwhile, based on the Average
were approximated using reflective measurements derived Variance Extracted (AVE) which is value to determine
from previous similar studies and handled as individual items. whether the requirements of convergent validity have been
Thus, the internal reliability values of the scales were met, so, all constructs have met the requirements of
examined applying composite reliability, along with Cronbach convergent validity because the AVE values are all > 0.50
alpha values. The values of Cronbach alpha ranged between

Table 1. The Result of Constructs Reliability and Validity.

Cronbach’s alpha composite reliability Average Variance Extracted (AVE)
Relative advantage 0.824 0.898 0.762
Compatibility 0.721 0.835 0.631
Top management support 0.787 0.825 0.697
Organizational readiness 0.756 0.814 0.656
Government regulations 0.720 0.826 0.545
BDA adoption 0.808 0.876 0.732
Knowledge Management 0.772 0.845 0.538
Firm performance 0.809 0.866 0.523

B. Assessment of the Structural Model

Following the study of the measurement model, the
structural model was evaluated in the PLS-SEM analysis.
testing each relationship which is carried out using the
evaluation of estimated path coefficients which is an
evaluation to find out how good the causality relationship of
each independent construct is to the dependent construct
predicted in the model. An independent variable is said to
have a good causal relationship, if it has a statistic of more
than a critical value of 1.96 (for a 5% significance level).
Evaluation of the estimated path coefficient in this study is
using smartPLS with a bootstrapping procedure. The results
of the evaluation of path coefficient estimates are then used as
a basis for decision making in hypothesis testing.
Visualization of the final model of mediation accompanied by
path coefficients and statistics with the SmartPLS
bootstrapping procedure is shown in Figure 2 below.
Fig 2. Bootstrapping

In this research there are 9 hypotheses to be developed. To carry out the hypothesis test, 2 criteria are used, namely the value
of path coefficient and the t-statistic. The value criterion for the path coefficient, that if the value is positive then the effect of a
variable on other variable is unidirectional. If the value of path coefficient is negative, then the influence of a variable on other
variables is in the opposite direction. The hypothesis of research can be accepted if the value of t-count (t-statistic) > t-table at an
error rate (α) of 5% is 1.96. The following table is the results of the calculation of the hypothesis in the research:

Table 2. Hypothesis constructs.

Original
Hypothesis T-value P-Values Decisions
Sample
Direct relations
relative advantage -> BDA adoption 0.205 2.675 0.003 Accepted
Compatibility -> BDA adoption 0.106 1.184 0.124 Rejected
Top management support -> BDA adoption 0.212 2.843 0.015 Accepted
Organizational readiness -> BDA adoption 0.203 2.028 0.004 Accepted
Government regulations -> BDA adoption 0.279 2.981 0.032 Accepted
BDA adoption -> Knowledge Management 0.362 3.286 0.002 Accepted
BDA adoption -> Firm performance 0.237 2,685 0.000 Accepted
Knowledge Management -> Firm performance 0.206 2.786 0.025 Accepted
Mediating
BDA adoption -> Knowledge Management -> Firm performance 0.275 2.125 0.033 Accepted

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The structural model for hypothesis testing, in which This study finding seems to be consistent with studies by [25]
eight hypotheses are accepted and one is rejected (See Table and [13] which indicated that compatibility, has an
2). Relative advantage has significant impact on BDA insignificant effect on BDA adoption. This limited influence
adoption (β= 0.056, t– statistic=2.675>1.96, p=0.003 < 0.05), might be described by the adaptability level of SMEs
so the first research hypothesis (H1) that relative advantage processes and practices, which may be easier for SME than
influences BDA adoption is accepted. Compatibility has a no for large firms. As SME are adaptable, compatibility between
significant impact on BDA adoption (β = 0.106, t– their practices and the BDA system is not an issue
statistic=1.184<1.96, p=0.124 > 0.05), thus, the second encountered in the decisions-making process.
research hypothesis (H2) is rejected. Top management support
has significant impact on BDA adoption (β = 0.212, t– The outcomes of this study reveal the significance of top
statistic=2.843>1.96, p=0.015 < 0.05); thus supporting the management support and organizational readiness variables
third research hypothesis (H3), which asserts that Top with respect to big data adoption. Prior research has
management support positively influences BDA adoption. repeatedly shown that top management support is a key
Organizational readiness has a significant impact on BDA component of adopting various types of technology [13, 26].
adoption (β = 0.203, t– statistic=2.028>1.96, p=0.004 < 0.05), Given the decision-making role of owners and managers in
supporting the fourth research hypothesis (H4). Government small hotels, they must create a supporting ecosystem to
regulations has significant impact on BDA adoption (β = ensure adoption success. Managers promote organizational
0.279, t– statistic=2.981>1.96, p=0.032 < 0.05); thus, the fifth changes through value communication and vision clarity to
research hypothesis (H5) is accepted. subordinates. In summary, top management support may
facilitate technology/service learning and dissemination
BDA adoption has a significant impact on Knowledge throughout the firm and plays an important role in the stages
Management (β = 0.362, t– statistic=3.286>1.96, p=0.002 < of adoption. Furthermore, research dedicated to technology
0.05), supporting the sixth research hypothesis (H6). BDA adoption [13] has consistently substantiated the important the
adoption has a significant impact on organizational association between organizational readiness and big data
performance (β = 0.237, t–statistic=2.685>1.96, p=0.000 < adoption.
0.05); thus, the seventh research hypothesis (H7) is accepted.
Knowledge Management have a significant impact on In terms of the environment, Government regulations
organizational performance (β = 0.206, t– were found to have a substantial impact on big data adoption.
statistic=2.786>1.96, p=0.025 < 0.05), supporting the eighth The relationship between Government regulations and big
research hypothesis (H8). Finally, for the evaluation of the data adoption discovered in this study aligns with previous
ninth hypothesis (H9), confirming that Knowledge research [13]. Similarly, government regulatory assistance and
Management have a mediating effect between BDA adoption financial assistance can help enterprises overcome inadequate
and organizational performance (Sobel’s statistic = 2.125, p = technical and financial capabilities for big data adoption.
0.033) Government legislation makes it easier for hotels to make
adoption decisions, especially when firms lack resources.
C. Discussion
Considering that BDA currently lacks a theoretical Results of our empirical analysis provide stimulating
foundation from an organizational standpoint, one of the goals evidence with respect to the significant role of BDA
of this study was to examine the effect of BDA adoption on acceptance, which was found to significantly affect
company performance (perceived antecedents and impact) knowledge management and business performance. The
from an organizational standpoint. Therefore, we proposed an findings reveal that the breadth of BDA implementation is
integrated model based on the TOE to outline BDA adoption associated with an increased influence on knowledge
and the theory of RBV to explore the influence of BDA management and business performance. This finding is
adoption on perceived impacts. Based on the findings of the consistent with RBV theory predictions and various actual
statistical analysis, we identified relative advantages, Top investigations with respect to other types of technologies and
management support, organizational readiness, competitive applications in which intense use of a technology/service
pressure, and GRs as major antecedents of BDA adoption leads to an increased degree of impact and value.
among the TOE factors.
Lastly, the interaction model was evaluated in order to
Technological factor data showed that relative advantage examine the proposed hypotheses. As expected, the major
significantly drives BDA adoption, whereas compatibility had influence of knowledge management on BDA adoption and
an insignificant effect. Thus, the major influence of relative business performance was verified. In conclusion, the current
advantage on big data adoption is aligned that reported in study findings offer evidence of a moderating effect of
prior research indicating a strong effect of relative advantage. information sharing on the relationship between BDA
This study finding seems to be consistent with studies by [25] adoption and businesses performance. The results of this
and [13], which indicated that relative advantage has a study also demonstrated that Technology (relative
significant effect on BDA adoption. Because the benefits of advantage), organizational (top management support and
big data are the primary motivators or drivers for SMEs to organizational readiness) and environmental (Government
embrace BDA, they tend to have a significant impact on its regulations) elements are the most significant antecedents of
adoption. However, the negligible influence of compatibility BDA adoption in the context of SMEs. In addition, the
on big data adoption contradicts previous findings by [62].

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Volume 8, Issue 5, May – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
results confirm that BDA adoption can enhance the [4]. Rayburn, S.W.; Anderson, S.T.; Zank, G.M.; McDonald,
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