Unlocking the Drivers for Big Data Analytics Use in Indonesian Firms

Abstract

Big Data Analytics (BDA) is a process to extract information from big data to get meaningful insight. The goal of this research is to identify the factors that become the drivers for BDA adoption intention in Indonesian firms, and subsequently, the BDA actual usage in Indonesian firms. The framework used is TOE (Technological-Organizational-Environment) framework as this framework is the one that suitable for assessment on firms' level. The respondents collected using random sampling and come from a managerial level employee of the firm so that the data gathered show the firm condition. The research data gathered using an online questionnaire and collected from 106 firms around Indonesia. Data processed using SEM-PLS method by SMART-PLS. The results of this research shown that in Indonesian firms, compatibility, complexity, organizational size, relative advantage, and competition intensity factor significantly influence the BDA adoption intention on firms, and the BDA adoption intention subsequently significantly influence the BDA actual usage. While other factors like technological resource competency, absorptive capacity, environmental uncertainty, and regulatory support did not influence BDA adoption intention significantly. The conclusion is that in Indonesia, from the technology context, complexity, compatibility, and relative advantage would affect the intention to adopt BDA, but in Indonesia, firms have not realized the full potential of BDA advantage. From Organization context, organization size is the factor that influences the BDA intention. This is due to bigger firms can afford relatively more resources that can be utilized for BDA.  In the environmental context, competition intensity is the factor that influences the BDA adoption intention. As it would put pressure on firms to innovate or adapt, in some ways like implement new technology like BDA, to stay in competition.