The associations between big data analytics, strategic management accounting and organisational performance

This study examines the associations between big data analytics (BDA) capability (comprising seven resources: data, technology, basic resources, managerial skills, technical skills, data-driven culture and organisational learning), the use of strategic management accounting (SMA) practices, and organisational performance, with decision quality examined as a mediator of the association between SMA usage and organisational performance. Data were collected from 273 Australian business organisations via a survey questionnaire and analysed using the partial least squares structural equation modelling technique. The results reveal that three specific BDA resources, namely technology, basic resources and managerial skills, are positively associated with the use of SMA practices. Further, SMA usage was found to be positively associated with enhanced organisational performance, with this association partially mediated by decision quality. The study contributes to the limited empirical evidence examining the antecedents and outcomes of the use of SMA practices. The findings suggest that organisations seeking to enhance their use of SMA practices may benefit from strengthening BDA-related technology, basic resources and managerial skills. The findings further suggest that the benefits associated with SMA usage may depend on how effectively SMA information supports managerial decision making, with higher decision quality in turn associated with improved organisational performance.