Developing and evaluating a business analytics readiness and capability maturity model for ERP systems: an empirical study of the Greater China region

Developing and evaluating a business analytics readiness and capability maturity model for ERP systems: an empirical study of the Greater China region

Many organisations in the Greater China Region (GCR) invest significant resources in their enterprise resource planning (ERP) systems, integrating or embedding advanced BA functionalities. The justification for this research is based on the importance of understanding and measuring BA readiness and capability of organisations using ERP systems. The success of an organisation in making datadriven decisions to achieve business success can be indirectly measured by their perceived BA capability and success, which significantly impact the organisation's overall success. To address this research problem, the study formulated a set of research questions to address the key gaps identified in the literature, with an emphasis on CSFs, measurement dimensions, and empirical validation of BA Readiness and Capability Maturity Model for ERP systems. The research gaps include (1) a lack of research on CSFs for ERP BA readiness, (2) limited understanding of how to apply CSFs with methodological rigour for BA capability measurement, and (3) limited exploration and empirical application of CSFs supported by Item Response Theory for assessing ERP BA readiness and BA capability in organisations using ERP systems. Addressing these research gaps is of great significance in advancing the understanding of ERP BA readiness and maturity, potentially leading to profound positive impacts on organisational success in this context. The study addresses three sets of high-level research questions and eight sets of low-level research questions, each targeting a specific research gap. The development and evaluation of a BA readiness and capability maturity model (BARCMM) for organisations using ERP systems involved developing a quantitative survey instrument based on existing literature. Rasch analysis assigns items to five maturity levels, while hierarchical cluster analysis classifies organisations into different maturity levels. The BARCMM integrates into a structural equation model. It predicts how BA readiness and capability influence the perceived success of BA initiatives in ERP systems, demonstrating a positive and significant relationship. This research contributes both theoretically and practically by providing organisations in the GCR with a rigorous means to assess BA readiness and BA capability maturity during ERP adoption and usage. Further research is needed to validate the model in other geographical regions and minimise biases associated with self-assessment questionnaires.

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