Business value of cognitive analytics technology: a dynamic capabilities perspective

Abstract

Purpose Novel and emerging technologies such as cognitive analytics attract a lot of hype among academic researchers and practitioners. However, returns on investments in these technologies are often poor. So, identifying mechanisms through which cognitive analytics can add value to firms is a critical research gap. The purpose of this paper is to theorize how cognitive analytics technologies can enable the dynamic capabilities of sensing, seizing and reconfiguring for an organization. Design/methodology/approach This conceptual paper draws on the extant academic literature on cognitive analytics and related technologies, the business value of analytics and artificial intelligence and the dynamic capabilities perspective, to establish the role of cognitive analytics technologies in enabling the sensing, seizing and reconfiguring capabilities of an organization. Findings Through arguments grounded in existing conceptual and empirical academic literature, this paper develops propositions and a theoretical framework linking cognitive analytics technologies with organizations’ dynamic capabilities (sensing, seizing and reconfiguring). Research limitations/implications This paper has critical implications for both academic research and managerial practice. First, the authors develop a framework using the dynamic capabilities theoretical perspective to establish a novel pathway for the business value of cognitive analytics technology. Second, cognitive analytics is proposed as a novel antecedent of the dynamic organizational capabilities of sensing, seizing and reconfiguring. Originality/value To the best of the authors’ knowledge, this is the first paper to theorize how cognitive analytics technologies can enable dynamic organizational capabilities, and thus add business value to an organization.