Exploring the role of data analytics in enhancing business financial performance within JSE-listed companies in South Africa

Abstract

The purpose of the study is to explore the role of data analytics in enhancing business financial performance within JSE-listed companies in South Africa. The study further investigates how data analytics impact Human Resources (HR) strategy, customer strategy, and production or service design strategy as drivers of business financial performance. Previous researchers have conflicting views on the importance of data analytics in business decision making. Some researchers stated that it is important for business leaders to use an evidence-based approach which includes analysing data before making important business decisions, while others argue that decisions can easily be made if business professionals have relevant experience related to the subject that is linked to that decision. This study aims to investigate whether data analytics is important for decision making and further explores how businesses can use data analytics effectively to create business value and enhance to business financial performance within the South African business context. The study followed a quantitative research approach, the researcher collected data using an online questionnaire, and the population of the study was data analysts who work in HR, customer, and production or service design departments within JSE listed companies in South Africa. The results of the study were analysed in line with the purpose, and the results indicated that there is a positive relationship between data analytics and business financial performance. Based on the results of the study, it is recommended that businesses invest in technology, data analytics tools, and upskilling data analysts as elements of data analytics to enhance business financial performance.