Powering management control with Business Analytics: An institutional perspective to uncover the enablers of adoption

Despite the widely recognized potential of Business Analytics (BA) in enhancing decision-making and boosting business performance, organizations struggle to extract strategically valuable insights from data. The focus tends to be on data collection, cleansing, and storage, with less attention given to evaluating organizational, human, and cultural factors that can impact the successful adoption and institutionalization of these approaches. In light of this, the present research aims to examine how Business Analytics (BA) is incorporated into decision-making processes and to comprehend the institutional factors that influence their effective implementation. The study applies the theoretical framework developed by terBogt and Scapens (2019) to understand how the general archetype of BA is institutionalised through varied situated rationalities. The study utilizes an action research approach in a case where the company's objective was to determine how BA could assist in forecasting the costs of spare parts and maintenance. The findings show that the institutionalization of BA is linked to the presence of an "institutional entrepreneur" and institutional "conflicts", a deep understanding of the company's performance management model, an institutional environment ready for innovation, and an appropriate internal communication model. This study contributes to the existing literature by highlighting the need for a holistic approach to integrate BA into management control systems, and offers practical recommendations for organizations seeking to leverage BA for performance management.