Source: UNIV OF MINNESOTA submitted to NRP
UTILIZATION OF BIG DATA ANALYTICS AMONG MINNESOTA SMALL BUSINESSES
Sponsoring Institution
State Agricultural Experiment Station
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
1026813
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Jul 1, 2021
Project End Date
Jun 30, 2024
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UNIV OF MINNESOTA
(N/A)
ST PAUL,MN 55108
Performing Department
Design, Housing & Apparel
Non Technical Summary
Big data analytics (BDA) is innovating the ways businesses draw insights from the ever-increasing amount of information available about consumer behavior. Big data represents the massive amount of structured and unstructured consumer interaction data which provides actionable descriptive and predictive insights. If captured and analyzed properly, big data has the potential to help businesses achieve efficiency, reduce fraud, increase sales, enhance customer service, and lower operation costs (Olufemi, 2019).Despite these benefits, the adoption and use of BDA have been mainly restricted to large and multi-national companies due to the significant investment involved (Baldwin, 2015). Small businesses, which hire fewer than 500 employees, are lagging behind in the usage of big data analytics since they often lack trained specialists with analytic expertise and face cultural and financial barriers within the organization (Coleman et al., 2016). In Minnesota, small businesses are the backbone of the state's economy, as they represent over 94% of the total businesses in Minnesota and are responsible for 52% of job creation (Bodin, 2017). Recently, small businesses were hit especially hard by the COVID-19 pandemic, thus there is a critical need for small businesses to meet the changing consumer behavior and industry trends through big data.This proposal seeks to understand the utilization and application of BDA among small-sized businesses in Minnesota in a comprehensive manner. Specifically, the first stage will involve examining barriers to big data analytics adoption (e.g., organizational culture, resources) through a survey of Minnesota small businesses. The second stage will entail developing case studies that describe successful implementation of BDA and how it helped businesses remain resilient during the pandemic. The final stage involves developing a comprehensive framework for the successful implementation of BDA in small businesses. Such framework will help small businesses in Minnesota cultivate big data capability and excel in their growth post-pandemic. The findings of the study will be shared among business owners who participate in the study and academics for wider dissemination.
Animal Health Component
50%
Research Effort Categories
Basic
50%
Applied
50%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60262993100100%
Goals / Objectives
Big data analytics (BDA) is innovating the ways businesses draw insights from the ever-increasing amount of information available about consumer behavior. Big data represents the massive amount of structured and unstructured consumer interaction data which provides actionable descriptive and predictive insights. If captured and analyzed properly, big data has the potential to help businesses achieve efficiency, reduce fraud, increase sales, enhance customer service, and lower operation costs (Olufemi, 2019).Despite these benefits, the adoption and use of BDA have been mainly restricted to large and multi-national companies due to the significant investment involved (Baldwin, 2015). Small businesses, which hire fewer than 500 employees, are lagging behind in the usage of big data analytics since they often lack trained specialists with analytic expertise and face cultural and financial barriers within the organization (Coleman et al., 2016). In Minnesota, small businesses are the backbone of the state's economy, as they represent over 94% of the total businesses in Minnesota and are responsible for 52% of job creation (Bodin, 2017). Recently, small businesses were hit especially hard by the COVID-19 pandemic, thus there is a critical need for small businesses to meet the changing consumer behavior and industry trends through big data.This proposal seeks to understand the utilization and application of BDA among small businesses in Minnesota in a comprehensive manner and suggests BDA implementation methods for enhanced firm performance. A total of three objectives and outcomes are explained below. The outcome of each phase will be developed into manuscripts and submitted to conferences (e.g., Academy of Marketing Science) and academic journals (e.g., Journal of Small Business Management, International Journal of Entrepreneurship and Small Business) for dissemination.Phase 1. To figure out how small businesses can implement BDA to improve performances, the first question to ask is "what has prevented small businesses from adopting BDA thus far?" Thus, the first stage of this project will involve examining the barriers to BDA adoption (such as organizational culture and resources) through a survey of the small businesses in Minnesota. The current status of BDA adoption (such as types of BDA use, length of BDA use, and BDA's significance in operation) will also be assessed at this stage. Drawing from the theories of resource-based view and diffusion of innovation, hypotheses may include the following:Lack of tangible resources (such as personnel, financial support, state resources) decreases a firm's capacity to innovateLack of intangible resources (such as understanding of BDA, organizational culture, management support) decreases a firm's capacity to innovateThe moderating role of the COVID-19 pandemic (i.e., slowing the adoption of BDA)Phase 2. Upon surveying small businesses, several firms with notable BDA implementation strategies and applications will be selected and developed into case studies. These case studies will feature how small enterprises have utilized BDA to meet the changing consumer demands and weather the pandemic. The research questions to be answered include the following:How did the small businesses effectively implement BDA as part of their operation?What are the key benefits of BDA in operation, customer management, and branding?In what ways did BDA help the small businesses to remain resilient to the consumer and industry shift caused by the pandemic?Phase 3. The third objective is to develop a comprehensive framework for implementing BDA among small businesses based on previous findings (stage 1 and 2). The benefits, challenges, and opportunities of BDA implementation for small businesses will be identified and tested through a large-scale online survey. The outcome of this stage will provide meaningful implications for academics and small businesses on how to innovate using BDA.
Project Methods
Phase 1. Current Status and Barriers to BDA AdoptionResearch Method/Data Collection: Online survey of key decision-makers (e.g., CEO, founder, managers, directors) of Minnesota small businessesTarget Number of Respondents: 100-150Timeline: 7 - 8 monthsLocation/Facility: Online data collection; data will be analyzed via PI's software & computerPhase 2. Models of Successful BDA ImplementationResearch Method/Data Collection: In-depth interviews via zoom with key decision-makers (e.g., CEO, founder, managers, directors) of Minnesota small businessesTarget Number of Respondents: 5-8Timeline: 5 - 6 monthsLocation/Facility: Online data collection; data will be analyzed via PI's software & computerPhase 3. Development of a Conceptual Framework for BDA ImplementationResearch Method/Data Collection: Online survey of key decision-makers (e.g., CEO, founder, managers, directors) of Minnesota small businessesTarget Number of Respondents: 100-150Timeline: 7 - 8 monthsLocation/Facility: Online data collection; data will be analyzed via PI's software & computer

Progress 10/01/21 to 09/30/22

Outputs
Target Audience:The findings of our study were disseminated at the annual International Textiles and Apparel Association Conference in 2022 in theform of a conference proceeding. The target audience includes those who attended the conference (e.g., students, faculty, and industry professionals in retail) as well as any retail small business owners who aim to cultivate big data capability for their growth post-pandemic. Changes/Problems:In lieu of an online survey, a qualitative method utilizing in-depth interviewswas used as a primary method to complete Phase 1-3. This change in the methodology was implemented for the following reasons.Since small firms tend not to disclose strategic and organizational information, direct and individual interaction is essential in understanding the profiles of small businesses.In-depth interviews are an efficient approach that provides more depth of information and representation. Also, in-depth interviews reduce the distance between the interviewer and interviewee, thus enhancing the mutual understanding between them (Creswell, 2009; Bryman & Bell, 2015). Hence, it was determined that one can better understand the firm's decision-making process and the benefits/challenges of big data analytics adoption throughin-depth interviews. References: Bryman, A., & Bell, E. (2015). Business research methods (4th ed.). Oxford: Oxford University Press. Creswell, J. W. (2009). Research design. Qualitative, quantitative, and mixed methods approaches (3rd ed.). Thousand Oaks, CA: Sage Publications. What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?The findings were published in a conference proceeding (International Textiles and Apparel Association) in 2022. What do you plan to do during the next reporting period to accomplish the goals?To further disseminate the findings,a journal manuscript detailing a comprehensive framework of BDA implementationis currently being prepared and will be submitted to a journal in Jan 2023.

Impacts
What was accomplished under these goals? Major phases of the project have been completed, and using the Technological-Organizational-Environmentalframework, a total of 7 MN retail small business owners were interviewed in-depth to understand the drivers, barriers, and processes of small businesses' big data analytics (BDA) adoptions. As for the technological factors, the advantages of BDA utilization were identified as a better understanding of customers, strategic decision-making, optimization of marketing tools, and accurate sales/trends forecast.However, technological difficulties in understanding data and operating data analytical tools appear as challenges. Hence, risks such as complexity and uncertainty of efficient implementation of BDA remain concerns to small businesses. Regarding the organizational factors, the small size of the firm was discovered as an influential factor in the BDA adoption process. The simpler and faster decision-making structure and strong leadership support for embracing the new technology system facilitated firms' rapid BDA adoption decisions.However, lack of time, training resources, and human resources were discovered as major organizational challenges. As environmental factors, the macroeconomic contexts such as the COVID-19 pandemic and dynamic market trends considerably influenced small businesses to adopt BDA in order to overcome the sudden changes in consumer behavior and industry trends.Our findings show that small businesses that adopted BDA have not only survived but also improved their firm performance during this tumultuous period.?

Publications

  • Type: Conference Papers and Presentations Status: Published Year Published: 2022 Citation: Kim, N.L., & Park, J. (October 2022). Can data save small businesses? Benefits and challenges of big data analytics adoption among small-sized clothing retailers. International Textiles and Apparel Association (ITAA) Annual Conference, Denver, CO.


Progress 07/01/21 to 09/30/21

Outputs
Target Audience: Nothing Reported Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Nothing to report yet.

Publications