BUSINESS ANALYTICS CAPABILITIES AND THEIR IMPACT ON COMPETITIVE ADVANTAGE IN SMALL AND MEDIUM-SIZED ENTERPRISES

Abstract

Business analytics has become an important tool for small and medium-sized enterprises (SMEs) seeking to improve decision-making and strengthen their competitive position. This study examines the influence of business analytics capabilities on the competitive advantage of SMEs, focusing on tangible analytics resources, intangible analytics resources, and human analytical skills. A quantitative research design is proposed using a structured questionnaire administered to SME owners and managers. The collected data will be analyzed using descriptive statistics, reliability and validity testing, correlation analysis, and Partial Least Squares Structural Equation Modeling (PLS-SEM). The study aims to determine whether business analytics capabilities significantly contribute to cost efficiency, innovation, market responsiveness, differentiation, and customer value. The proposed framework emphasizes that analytics technologies alone may not provide competitive advantage; their effectiveness depends on data quality, organizational support, analytical knowledge, and employees' ability to interpret and apply analytical insights. The study is expected to provide practical guidance for SMEs seeking to develop data-driven capabilities and improve their competitiveness in increasingly digital business environments.