Data Analytics and Firm Performance: An Empirical Study in an Online B2C Platform

Posted: 25 Jan 2018

See all articles by Peijian Song

Peijian Song

Nanjing University

Chengde Zheng

Nanjing University

Cheng Zhang

Fudan University

Xiaofeng Yu

Nanjing University

Date Written: January 17, 2018

Abstract

Data analytics has become an increasingly eye-catching practice in both the academic and the business communities. The importance of data analytics has also prompted growing literature to focus on the design of data analytics. However, the boundary conditions for data analytics in creating value have been largely overlooked in the literature. The objective of this article therefore is to examine the business value of data analytics usage and explore how such value differs in different market conditions. We rely on an online B2C platform as our empirical setting and obtain several important insights. First, both demand-side and supply-side data analytics usage has a positive effect on the performance of merchants. Second, when merchants’ product variety is high, the influence of usage toward demand-side data on performance is strengthened, whereas such impact is weakened for supply-side data analytics. Third, when competitive intensity is high, the performance implication of demand-side data analytics usage is strengthened, whereas such impact is not strengthened for supply-side data analytics. This study contributes by advancing the overall understanding of business value of data analytics.

Keywords: data analytics, business value, product variety, competitive intensity, platform

Suggested Citation

Song, Peijian and Zheng, Chengde and Zhang, Cheng and Yu, Xiaofeng, Data Analytics and Firm Performance: An Empirical Study in an Online B2C Platform (January 17, 2018). Available at SSRN: https://ssrn.com/abstract=3104317

Peijian Song (Contact Author)

Nanjing University ( email )

No. 22 Hankou Road
Nanjing, Jiangsu 210093
China

Chengde Zheng

Nanjing University ( email )

Nanjing, Jiangsu 210093
China

Cheng Zhang

Fudan University ( email )

Beijing West District Baiyun Load 10th
Shanghai, 100045
China

HOME PAGE: http://homepage.fudan.edu.cn/~zccheng

Xiaofeng Yu

Nanjing University ( email )

Nanjing, Jiangsu 210093
China

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