Moderating Effect of Organizational Factors on the Relationship between Data Factors and Profit Maximization: A Study of Big Data Adoption in Chinese SMEs Retail Enterprises
PhD candidate, Business, Taylor’s University, Kuala Lumpur, 47500, Malaysia.
Yun Fah Chang
Associate Professor, School of Accounting & Finance, Faculty of Business & Law, Taylor’s University, Kuala Lumpur, 47500, Malaysia.
Fatin Nabila Abd Latiff
Lecturer, School of Accounting & Finance, Faculty of Business & Law, Taylor’s University, Kuala Lumpur, Malaysia, Malaysia
Abstract
In the context of digital transformation, small and medium-sized enterprises (SMEs) within the retail sector are increasingly pressured to adopt data-driven strategies to enhance profitability and competitiveness. However, the specific mechanisms by which data-related factors and organisational dynamics influence profit maximisation outcomes in SMEs remain insufficiently explored. This study aims to investigate the relationships between data-related factors, organisational dynamics, and profit maximisation in SMEs operating in the retail sector in China. By examining the impact of data security, data management practices, big data adoption, and organisational factors on profit maximisation outcomes, this research seeks to provide insights into the mechanisms driving financial performance in SMEs. A quantitative research approach employed, utilising online questionnaires to collect data from 168 SMEs in the Chinese retail sector. The study focused on variables associated with data security, data management practices, big data adoption, organisational factors, and profit maximisation. Smart-PLS was utilised for data analysis, facilitating the examination of direct, mediating, and moderating effects. The findings of the study underscore the significant positive impact of data security, data management practices, and big data adoption on profit maximisation in SMEs. Additionally, the study identifies the mediating role of big data adoption and the moderating role of organisational factors in shaping the relationships between data-related factors and profit maximisation outcomes. This research contributes to existing literature by elucidating the complex interplay between data-related factors, organisational dynamics, and profit maximisation outcomes in SMEs within the retail sector. The findings offer practical implications for SMEs aiming to leverage data-driven strategies to enhance profitability and competitiveness, as well as theoretical insights for scholars investigating the intersections of data analytics, organisational behaviour, and financial performance.