Information Resources Management Journal

Volume 35 • Issue 2

Data Analytics in Small and

Medium Enterprises (SME):
A Systematic Review and Future
Research Directions
Shikha Bhardwaj, Indian Institute of Management, Sambalpur, India*

ABSTRACT

Data analytics in small and medium enterprises (SME) is an emerging area of research and practice.
Despite of growing importance of SMEs and increasing research in data analytics, the existing literature
lacks an integrated view of the phenomena. To bridge this gap, a systematic literature review of 42
published research studies from peer-reviewed journals from 2010-2021 related to data analytics
and SMEs is performed. After classification, categorisation, and synthesis, four broad themes are
addressed, namely enabling factors, restraining factors, investing SMEs, and performance indicators.
Further, research gaps identified in thrust research areas and insights for future research directions
are presented.

Keywords
Data Analytics, Small and Medium Enterprise, SME, Systematic Review

1. INTRODUCTION

Around 40% of national income in developing countries and 50% of employment worldwide are
represented by Small and Medium Enterprise (SME). SME across the world have grown tremendously
in recent years and they are expected to grow three times more by 2030. On contrary, some 65% of
them fail or exit from market every year, due to several reasons, such as lack of capability, limited
funds, and lack of strategic use of resources particularly data (Tarek & Adel, 2016; Wang & Wang,
2020). SME plays a vital role in most of the emerging economies (Ward & Rhodes, 2014). Remarkably,
research in the domain of SMEs have shown growing interest among academia, policy makers and
industry during last decade. Many research studies have highlighted the importance of SME and
their contribution in modern economy. Despite of this, SMEs are vulnerable and lack strength to
withstand global competition. Subsequently it is suggested, that to survive and stay competitive,
SMEs must act pro-active, observe business trends, and use data tactically (Raj, et. al., 2016; Ojiako,
et.al., 2015). Therefore, to build concerted efforts to improve SME competitiveness, data analytics
in SME needs attention.
Data analytics in SME, simply put, is the application of statistical methods and technology to
process the historical data and draw meaningful results. These results can facilitate strategic decision
making, improved performance and better business future (Wang & Wang, 2020). Emerged in late
2000s, data analytics have been highlighted as a critical success factor for many businesses in emerging
economies (Nam, et.al., 2021; Liu, Y, et.al., 2020). Data analytics in business acts as a driver of

DOI: 10.4018/IRMJ.291691 *Corresponding Author


Copyright © 2022, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.


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growth in highly competitive business environment (Naeini, et.al., 2019). However, if compared
to large enterprises, small enterprise reflects low orientation towards adoption of data analytics in
business (Ojiako, et. al, 2015; Boonsiritomachai, et.al., 2016). Surprisingly, few sectors in SME like
healthcare, manufacturing, e-commerce, and retail have shown high acceptance of data analytics in
business activities (Miyamoto, 2015; Gudfinnsson, et.al., 2019; Maroufkhani, et.al., 2020). Most of
the SMEs are using data analytics in report management, financial updates, supply chain function
and CRM functions only (Naeini, et.al., 2019; Ajibade.& Mutula, 2019; Gavrila & de Lucas, 2021).
As a result, it indicates that even today SMEs are either experiencing discomfort or inhibition in
implementation of data analytics. Thus, there exists a huge undefined gap between SMEs not investing
in data analytics as against SMEs using data analytics extensively. To identify reasons behind gap,
it is essential to identify the inhibitors, restraining forces and enablers of data analytics in SMEs.
Although existing literature illustrate a linear relationship between data analytics and SME
performance (O’Connor & Kelly, 2017). But still, lack of data integration, poor IT infrastructure,
low technology adoption and shortage of analytics knowledge, leads to ineffective execution of data
analytics in SME (Ajibade, et.al, 2019; Lyver & Lu, 2018). With a mix blend of thoroughly examined
studies over last decade, one set of studies have been largely reviewed that offers opportunities to move
forward and reflect backward whereas another set of studies are unattended. Therefore, a rigorous
systematic review will not only integrate the scattered research studies but also draw attention of
not-so known research themes in this domain. It will complement the existing studies and bring
the loose ends together. Moreover, an exclusive systematic review on data analytics in SME will
provide a theoretical background for future research, answer many unaddressed questions by deeper
understanding on the matter, and expand the broad topics of research studies in the research domain.
A summarised depiction of recent review research articles conducted in last five years is
represented in Table 1. A detailed investigation of these studies highlight that the existing literature
is broadly divided into two categories, one focus on a data analytics and their related aspects in SME
such as big data adoption, internationalisation of SME (Ajibade, 2016; Buzavaite & Korsakiene,
2019; Dam, et.al., 2019) and another examines relationship among two factors such as business
intelligence (BI) and performance of SME, knowledge management and productivity of SME, BI and
data analytics in SME (Llave, 2017; Bužavaitė, et.al., 2019; Llave, et.al., 2019). One study provides
an insight of big data analytics in different sectors of business but not SME (Inamdar, et.al., 2020). As
a result, author finds a dearth of review studies that classify recent studies into theme-based research
to provide insights for future research in context of SME. Therefore, by collecting, analysing, and
synthesizing the existing literature, this research study would explore the current state of research
topic on data analytics in SME and its related articles to provide a comprehensive approach in this
research domain. The present study is guided by following questions:

RQ1: What broad research themes are addressed in previous published research articles?
RQ2: What relevant research topics on data analytics in SME should be addressed in future research?

In this regard, a systematic review of published research articles during 2010-2021 is conducted,
by investigating research articles focused on data analytics and its related areas in SME. Further, a
thorough review of not-so known research themes enabled clustering of research article into major
themes and sub-themes. To add on, this research study further identifies the research methods used,
journals publishing these studies and provide an indication of geographic background undertaken.
This research study uniquely contributes in four ways: a) a systematic review of published
research article in last 11 years is performed, b) classification of research articles into four broad
categories based on their similarity and common underlying theme, c) identification of research gaps
and suggested future research avenues, and d) propose practical implication to practitioners and policy
makers. Further structure of research paper is as follows: next section covers research methodology
adopted in review process. Section three explains the findings and discussion, followed by future

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Table 1. Recent review studies in last Five years (2016-2020)

Study
Authors Journal Methodology Study Objective Period Sample

Content To systematise the literature on human capital

Ajibade P. (2016) Journal of Social Sciences Analysis for the internationalisation of SMEs 23

Systematic To examine the interrelationship of BI and

Literature BPM and their impact on organizational 2014-
Llave M.R. (2017) Procedia Computer Science Review performance of SMEs 2017 62

Buzavaite M. and
Korsakiene R. Entrepreneurial Business Literature 1990-
(2019) and Economics Review Review To examine the big data adoption in SME 2017 65

Bužavaitė M., et.al. Entrepreneurship and Bibliometric To analyse business intelligence and analytics 1990- Not
(2019) Sustainability Issues Analysis (BI&A) in SME 2019 mentioned

Systematic
Dam N.A.K.,et.al. Journal of Marketing Literature 2004-
(2019) Analytics Review To investigate international behaviour of SMEs 2018 43

International Journal of
Llave M.R., et.al. Business Intelligence Review To establish relationship between knowledge
(2019) Research Analysis management and productivity in SME 78

Systematic To explore and provide insights into the Big

Inamdar Z., et.al. Journal of Enterprise Literature Data Analytics (BDA) studies in different 2014-
(2020) Information Management Review sectors 2018 79

research direction in section four. Section five outlines the implication from institutional, government
and organisational standpoint and lastly limitations of the study.

2. METHODOLOGY

There are several types of systematic review papers namely narrative review, bibliometric review,
citation analysis, meta-analysis, structured review based on model, theories and construct and review
focused on model/ framework development (Gupta and Chauhan, 2021; Paul & Singh, 2017; Knoll
& Mathes, 2017; Radhawa, et.al., 2016). This research study followed the systematic literature
review suggested by Kitchenham (2004). This is one of the most popularly used method that aims
the completeness of search, shows effective result, and reports scientifically (Llave, 2019; Gupta,
et.al., 2020). The research process followed a well-defined methodological sequence and strict order:
a) developing a protocol for review, b) identification of inclusion and exclusion strategy, c) data
extraction, d) synthesis of result, and e) reporting the results.

2.1 Developing a Protocol

Based on a defined protocol, we first collected the previous review studies and read these articles to
identify gaps. After a careful reading, a summarised table 1 is presented. It collates the objectives,
methodology used, study period and study scope of the research articles. An in-depth examination
of previous review studies recognised gap areas, as a result, RQ1 and RQ2 are raised. To address the
research questions, a search strategy is used as protocol, the steps are as follows:

• Online database Scopus and Google Scholar were used to search the relevant research studies
published during 2010-2021. To obtain more appropriate results, advanced search options
available on online databases, were used. Grounded on the purpose of study, multiple search
strings were constructed, and search was confined to peer-reviewed published research articles
in journal of business, economics, and social science. The search terms used “Analytics” OR
“Data Analytics” OR “Business Analytics” OR “Business Intelligence” OR “BI” OR “BA” OR

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“BIA” AND “Small and Medium Enterprise” OR “SME” OR “Small business” OR “Small and
medium-sized enterprises”. The Boolean operator ensured that all research article related to
data analytics and SME were extracted, as sometimes, these terms were interchangeably used
in text by researchers.
• Only peer-reviewed published journal articles were taken to review, as they undergo a rigorous
process of screening. This helped to filter the high-quality research articles that match certain
level of methodological rigor. The quality assessment guides the research to undertake quality
studies and strengthen the inferences.

2.2 Inclusion and Exclusion Criteria

In continuation, to ensure that only relevant research articles were included in this study, inclusion
and exclusion criteria were defined.

• Grounded on the purpose of this study, the research articles were filtered on title and keywords
used in text. Only peer-reviewed research articles from economics, social science and business
journals in English were retrieved from online database. The unrelated research articles to data
analytics in SME, unrelated to research questions or full texts not available were eliminated.
Duplicate reports on the same research topic were also eliminated. In case, more than one version
of article was available, then only complete research article was considered. This stage led to
the exclusion of articles directly not related to the topic and 108 research articles were screened.
• Further, to ensure the exclusion of unrelated articles and add only related articles to the core
research theme, an in-depth reading of abstracts was conducted. At this stage, 47 articles were
filtered. Most of the excluded article either covered theme at periphery level or merely used in
keywords. But the research article does not confirm the topic in detail.

2.3 Final Selection

Final selection of research articles involves full text reading of all 47 articles. The criteria to shortlist
the research articles were: 1) the research article should discuss data analytics in SME as their core
theme, and 2) the objective of the research article should be related to the core theme, no ancillary
topics were taken. However, a careful reading of abstract was done in previous step but to ensure that
only those research articles focused on data analytics in SME were covered, the process of reading
full research article was conducted. At this stage finally 42 research articles were filtered.
Subsequently, the output is analysed on certain dimensions such as year wise distribution of
articles, sample country used in research, methods used in research and most popular journals in the
research domain.
Fig 1 represents growing interest of academician and researchers in this field of research. 2019
and 2020 have shown highest number of published research articles.
Further, sample country used in published research articles statistics reveal that USA and South
Africa are taken as samples in highest number of research articles, followed by India whereas countries
like Thailand, Australia and Romania are taken less as sample while conducting research studies on
data analytics in SME, as shown in Fig 2.
Around 57% of total published research articles in this research domain have used quantitative
methods like corelation, partial least square analysis, ANONA, multivariant, logistic regression etc.
About 31% of published research articles have used qualitative techniques such as case study, literature
review, interviews, triangulation. Only 12% study developed a theoretical and conceptual based on
mixed methods. Most of the studies have used quantitative method as shown in Table 2.
Fig 3 lists out the journals publishing the greatest number of research articles on data analytics
in SME. Technological forecasting and social change, problems and perspective in management,

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Figure 1. Year wise Published Articles

Figure 2. Sample country in published research articles

journal of knowledge management, international journal of technological learning and information

development are toping the charts. Remaining all of them have published only few research articles
on this topic.

2.4 Data Extraction and Synthesis

For data extraction and synthesis, a detailed excel format that includes bibliographic references (title,
year, author, and source), journal title, research objective, research methodology, citation, themes,
sub-themes of research paper and major findings, was produced. The purpose of this step was to
accurately record the information fetched from primary studies. A grounded theory approach as
suggested by Glaser & Strauss (1967) was applied on obtained data. The data mined was reviewed

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Table 2. Technique used in published articles

METHODOLOGY TECHNIQUE USED FREQUENCY PERCENTAGE

Correlation, inference model, prediction model,
Survey, modelling language, partial least square
analysis, PLS-SEM, Multivariant technique,
Quantitative ANOVA, Questionnaire, Logistic regression 24 57
Case Study, Literature review, focus group study,
Qualitative interviews, triangulation, textual analysis 13 31
Theoretical and Theoretical model, conceptual framework, concept
conceptual review 5 12

Figure 3. Journal publishing research articles on Data analytics in SMEs

for each research article independently and assigned a sub sub-theme. Later, after synthesis more
generic themes were identified, based on three-step process:

• First step of open coding identified 33 sub sub-themes out of 42 research articles. After careful
review of objective, research questions, findings, and discussion of each research article, it was
observed that many research articles were focused on similar themes. As a result, these were
clustered together e.g. out of 42 articles, 4 research articles discussed environment factors that
lead to data analytics in SME (e.g. Jun, et.al., 2020; Sargut, 2019; Miyamoto, 2015) and thus a
common sub sub-theme “Competitiveness” was named.
• Second step of axial coding, these 33 sub sub-themes were grouped into 14 sub themes, on grounds
of close similarity between and among them like “competitiveness”, “industry 4.0”, “developing
countries” were grouped as “Environment”. Many sub sub-theme were found suitable for two
sub-theme, in such cases the research articles were reread to clearly define the sub-theme for
example “innovation”, “innovative SME” and “technology innovation”.
• Third step of ancillary analysis defined 4 main themes out of 14. These main themes were
carried out on axial codes, to identify similarities and differences among sub themes and then
classify into main theme. For example, “market performance”, “financial performance”, and

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Figure 4. Steps followed in data extraction and synthesis

“organisational performance” were covered under performance indicator theme. Fig 4 represents
the steps followed in data extraction and synthesis to reach to main themes of reviewed research
articles in this domain.

At this stage of the research, reliability and validity are essentials elements to authenticate the
process. Generally, in qualitative research studies, validity is treated as a wholesome concept and
sufficient to fulfil conditions of reliability (Lincoln & Guba, 1985). Therefore, a peer debriefing was
conducted, the entire research process is revisited by an expert or someone aware of the phenomena
being discussed (Creswell & Miller, 2000). Therefore, a peer feedback and opinion are obtained.

3. FINDINGS AND DISCUSSION

The following section covers the main themes, sub themes, sub sub-themes of each cluster. Each
cluster elaborate a main theme and several sub themes. There are four main themes identified: 1)
Enabling factors, 2) Restraining forces, 3) Investing SMEs, and 4) Performance indicators. Table 3
presents theme, sub themes, sub sub-themes and contributing authors in each cluster.

3.1 Enabling Factors

First cluster represents enabling factors that facilitate data analytics in SMEs. Enabling factors can
be divided into four sub-themes namely organisational factors, technology factors, environmental
factors, and government policy.

• First, organisation factors include motivating factors within an organisation like strategies,
willingness to learn and effective decision making that drives the technological change (Ajibade,
et.al., 2019; Sargut, 2019; Tarek & Adel, 2016). As a matter, high proportion of SMEs have
shown their willingness to implement advanced technology, such as artificial intelligence,
machine learning, big data and data analytics, to simplify their business models particularly in
retail and manufacturing sectors (Gavril & de Lucas, 2021, Sargut, 2019). But SMEs willingness

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Table 3. Main Themes and Contributing Authors

Theme Sub theme Sub Sub-Themes Contributing Authors

Nam, V. H., & Bao Tram, H. (2021), Gavrila
Competitiveness Gavrila, S., & de Lucas Ancillo, A. (2021),
Industry 4.0 Kang, M. Y. (2020), Ajibade, P., & Mutula,
Organisational factor Circular economy S. M. (2019), Sargut, D. K. (2019), Ajibade,
Technology factor Top management support P. et.al. (2019), Adeyelure, T. S. (2018),
Environmental factor Firm Size Puklavec, B. et.al. (2018), O’Connor, C., &
Enabling
Government policy Developing countries Kelly, S. (2017), Boonsiritomachai, W. et.al.
Factors
 Trust (2017), Tarek, B. H., & Adel, G. (2016), 
 Entrepreneurial Tarek, B. H. et.al. (2016), Tarek, B. H. et.al.
opportunities (2016), Rodrigues, J. et.al. (2016), Ojiako, U.
Internationalisation et.al. (2015), Lyver, M. J., & Lu, T. -. (2018),
Pro-activeness Rauseo, P. J. (2010), Wang, S., & Wang, H.
(2020).
Emotional substance
Asymmetrical powers Wang, S., & Wang, H. (2020), Liu, Y. et.al.
Technical constraint
Skill shortage on (2020), Bhosale, S. S., & Patil, R. B. (2019),
Restraining Managerial constraint
analytics Sargut, D. K. (2019), Gudfinnsson, K. et.al.
Forces Operational limitation
Lack of knowledge (2019), Ranjani, C., & Kumar, A. (2017),
Internal incapability O’Connor, C., & Kelly, S. (2017), Rostek, K.
Culture et.al. (2012)
Innovative SME
Manufacturing 
Type of SME
Entrepreneurial
Country focus
orientation Jun, S. et.al. (2020), Boonsiritomachai, W.
Investing Contextual factor 
Owner-manager et.al. (2017), Tarek, B.H. et.al. (2016), Tarek,
SMEs Business strategy
Acceptance B.H. & Adel, G. (2016), Miyamoto, M. (2015),

Marketing & Sales Spiesberger, M. (2011), Kikawa, C. R. et.al.
Software industry (2019), Marra, A. et.al. (2017), Agerri, R.,
Export intensive et.al. (2013).
Accounting practices Saleem, H., et.al. (2020), Sharif, K., et.al.
Financial performance Knowledge sharing (2020), Henage, R. (2020), Maroufkhani, P.
Market performance Customer activity et.al. (2020), Bhatiasevi, V., & Naglis, M.
Organisational Learning and growth (2020), Ferraris, A., et.al.(2019), Popovič, A.,
Performance
performance Revenue generation et.al. (2019), Ajibade,P., et.al. (2019), Naeini,
Indicators
 Skill development A. B.,et.al.(2019), Balan, S., & Rege, J. (2017),
 Strategic use of data Ranjani, C., & Kumar, A. (2017), Miles, D. A.
Visibility (2014), Moral, P.,et.al. (2014), Arora, S.K.,et.
Agility al. (2020), Bhosale, S. S., & Patil, R. B. (2019)

is determined by its readiness and acceptance to change, therefore, SME readiness depends
upon firm size, firm age, knowledge sharing practices, IT infrastructure and communication
strategies (Kang, 2021; Sargut, 2019). On the other hand, sometimes business goals such as
internationalisation, export intensive, entrepreneurial orientation, innovation and protection
of information, also act as enablers in technology adoption (Tarek, et.al., 2016; Tarek, et.al.,
2016). Puklavec et.al. (2018) clearly indicated that favourable organisational factors promote
the adoption of new valuable technology tools like data analytics and business intelligence in
SMEs. As a result, use of technology in innovative SMEs has been identified as a strategic tool
in decision-making (Ajibade & Mutula, 2019).
• In continuation, second set of factors are technology related. For timely and effective
decision making most of the mature SMEs are adopting data analytics based on business
complexity, competition, available resources, top management support and trusted IT vendors
(Boonsiritomachai, et.al., 2017). To add on, other features instrumental in implementation

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and adoption of technology are costs, security, data integration, trust in solution partner and
analytical support (Rodriguea, et.al., 2016). However, due to exhaustive and overwhelming data,
SMEs are in emergent need to receive accurate information, by use of data analytics in business
(Adeyelure 2018).
• Third enabling factor is related to environmental triggers. Numerous emerging phenomena like
innovation policies, circular economy, co-sharing and industry 4.0 have facilitated data analytics
in business functionalities (Gavrila & de lucas, 2021; Adyelure, 2018). As a result, dynamic
environment has created rapid growth of data and automation, that lead to quality business settings
and positively contributes in SMEs innovation (Nam, 2021). On the other hand, it is observed
that most of the SMEs in transition economies like Vietnam, Indonesia, perform moderate on
innovation as compared to developed countries. Subsequently, many SMEs in developing countries
are keen to utilize mobile intelligence to reduce their present opportunity cost (Adyelure, 2018).
Thus, ever-changing markets forces have forced SMEs to use data analytics to accelerate their
business and stay competitive (Adeyelure, 2018).
• Fourth enabling factor is government policy and support. Government support in the form of R&D
initiatives, technology guarantee funds and loans act as enabler to many SMEs and impact firm
profitability (Kang, Y., 2021). Also, enforcing regulatory and legislative framework as statutory
requirement enhances use of data analytics in SME (Ajibade & Mutula, 2019).

To sum up, SMEs with entrepreneurial pro-activeness, innovativeness, top management support,
strategic orientation and long-term plan intend to ease their business with technology (Ojikao, et.al.,
2015; Rauseo, 2010; Lyver & Lu, 2018; Wang & Wang, 2020). Thus, the organisational factors,
technology factors, environmental factors, and government policy act as enabling factors to build a
positive ecosystem and facilitates data analytics in SME.

3.2 Restraining Forces

Second theme represents restraining forces faced by SMEs in using data analytics. Despite of several
advances in data analytics, even today very few SMEs can leverage their business by its application
(Liu, 2020). SMEs face numerous challenges that act as restraining forces in understanding and
implementation of data analytics in SMEs (Wang & Wang, 2020). These challenges can be divided
into three broad categories: a) technical, b) managerial, and c) operational.

• Technical challenges include lack of understanding, knowledge, and experience. Liu, et.al
(2020) suggested that ‘little data’ would be more appropriate for SMEs because one of the main
reasons for SME resistance is too much data, that lead to ambiguity of where to start from. On
contrary, SMEs have massive desire to get information on internet, but due to limited capabilities,
hierarchical structures and emotional substance in adjustment, the utilization of data analytics
is confined (Bhosale & Patil, 2019).
• Managerial challenges include the insufficient resources to take data-driven decision, inability
to extract data from every byte like large firms and lack of skills on data analytics (Rajani &
Kumar, 2017). To add on, SMEs are also severely prey of asymmetrical power relationships and
weak strategic orientation (O’Connor & Kelly, 2017).
• Last, operational challenges that restrict the implementation of analytics includes lack of skilled
workforce, insufficient funds, organisational culture and huge disparity in cross-functional teams
within a SME (Sargut, 2019). Further, Gudfinnsson, et.al. (2019) stated that SMEs also face
perceived obstacle in adopting change related to data analytics. Therefore, technical, managerial,
and operational challenges either lead to high risk and cost decisions or high resistance among
SMEs (Rostek, et.al., 2012).

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3.3 Investing SMEs

Third theme highlights various SMEs that decided to invest in data analytics for different purposes.
Based on research articles, there are three main determining factors that motivates a SME to invest
or not invest in data analytics.

• First is type of business, SMEs operating in manufacturing, software industries, supply chain-
based enterprise, marketing-oriented enterprises, platform-based, and innovative SMEs have
shown high investment in IT and data analytics as compared to other traditional business models
(Jun, et.al, 2020, Marra, et. al., 2017; Miyamoto, 2015; Agerri, et.al., 2013).
• Second factor is related to country and its focus on SME development. Countries with focus on
SME research and development activities like Korea, South Africa, Thailand, and North Africa
have high likelihood to invest in IT and data analytics (Jun, et.al., 2020, Kikwa, et.al., 2019;
Boonsiritomachai, et.al., 2016; Tarek, et.al., 2016). Further, countries with strong technological
and innovation orientation like San Francisco, New York, Japan, and London have shown
significant investment in data analytics across different SMEs (Marra, et, al., 2017; Miyamoto,
2015). To add, many countries have identified SMEs as backbone of an economy, and therefore,
several program and scheme are offered to extent support in technology deployment like Russia
that leads to SME investment in data analytics (Spiesberger, 2011).
• Third factor is related to contextual setting of an individual SME. Factors that lead to
individual SMEs choice to invest in data analytics are supportive organisational, technological,
environmental, and behavioural factors; owner-manager acceptance; aligned corporate and
policy-making decisions; SME maturity to understand technology; internationalisation and
export intensive SME; and entrepreneurial oriented SMEs (Kikwa, et.al.,2019; Boonsiritomachai,
et.al., 2016; Tarek, et.al., 2016; Marra, et, al., 2017). Subsequently, many SMEs have invested
in value chain process of the business like purchasing and logistics function, marketing & sales
function, operation, and shipping function (Miyamoto, 2015). Agerri, et. al. (2013) highlighted
SMEs that are actively involved in offering niche solutions to specific segments tend to invest
more in data analytics to sustain the market demand.

Thus, factor contributing to investment decision of SME includes type of business, SME country
and its focus, contextual factors, and business strategy of an individual SME.

3.4 Performance Indicators

Previous research studies highlighted that application of advance technology and data analytics
have improved firm performance and profitability. Last theme is focused on outcomes achieved,
as performance indicators and it further identifies three sub-themes namely financial performance,
market performance, and organisational performance.

• First sub-theme elaborates financial performance indicators. Research studies indicates that use
of data analytics can bring technological innovation, enhanced firm productivity and maximise
revenue generation (Saleem, et.al., 2020; Rajani & Kumar, 2017). Several research studies have
supported the potential impact of analytics on financial performance of SMEs (Maroufkhani, et.al.,
2020; Henage, 2020; Ferarris, et.ql., 2019). Furthermore, data analytics in record management
and accounting processes have resulted in efficiency, accuracy, and improved accounting services
(Henage, 2020).
• Second performance indicator is market performance of SMEs. Mostly SMEs use marketing
analytics in CRM, website management, digital marketing, and social media (Miles, 2014; Moral,
et.al., 2014; Balan & Rege, 2017). Data analytics has helped SMEs to sense market, understand
customer behaviour, tap market demand, and maintain market reputation (Miles, 2014; Moral,

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et.al., 2014; Arora, et.al., 2020). Therefore, data-driven decision has shown significant impact
on sales, visibility, customer turnover, market sensing and overall market performance (Naeini,
et.al., 2019; Rajani & Kumar, 2017; Arora, et.al., 2020; Maroukhani, et.al., 2020).
• Third performance indicator represent organisation performance. Data analytics used in various
functional and operational process like supply chain management, learning and development
etc. have helped in building internal capabilities of an organisation (Bhatiasevi & Naglis, 2020;
Ferraris, et.al., 2019). Skill development, knowledge sharing practices, advance technology use,
innovative engagement of internal and external process has been empirically tested by several
researchers (Sharif, et.al., 2020; Ferraaris, et.al., 2019; Ajibade, et.al., 2019). Further, a careful
use of data analytics with collaboration has helped in data integration and streamlined relationship
across different functions of an organisation (Sharif, et.al., 2020; Bhosale & Patil, 2019).

To sum up, a data driven informed decision through data analytics facilitate positive financial,
organisational and market performance that help SME to compete and remain sustainable (Ajibade,
et.al., 2019).

4. FUTURE RESEARCH DIRECTIONS

In the previous section of this study, four main themes were identified based on literature survey,
that helped in deeper understanding of data analytics in SME. The existing literature covers various
aspect of related topics, as a result, the studies are diverse and fragmentated. The research studies
lack comprehensive viewpoint, may be due to unexplored research themes or incomplete investigation
in a research domain. Therefore, in this section of future research directions, we suggest scope for
future research in the field of data analytics in SME, as depicted in table 4.

4.1 Research Focus

Research focus details out three thrust areas of data analytics in SME. First, most of the research
studies have focused on building capabilities from technological perspective but not from human
perspective (Ferarris, et.al., 2019; Maraokhani, et.al., 2020; Wang & Wang, 2020). Mere investment
in advancement of technology and use of data analytics may not be sufficient to create value. Rather
a huge investment in developing data-driven culture and skill upgradation is the need of the hour.
Second, extant research studies are conducted from operational viewpoint, as a result most of them
highlight either the application of analytics or impact on firm after application (Saleem, et.al., 2020;
Popovič, et.al, 2020; Kikawa, et.al., 2020). Subsequently, studies lack managerial and strategic
viewpoint as a discussion. However, these studies identify the role of strategic and managerial decision
making but did not undergo a deep dive into this research theme. Third, most of prominent studies in
this research domain paid attention at firm level, therefore, a larger impact on SME ecosystem and
cohort is not taken into consideration (Puklavec, et.al., 2018; Nam, et.al., 2021; Gavrila & de Lucas,
2021). Future studies may wish to explore human perspective, strategic and managerial viewpoint,
and SME ecosystem as a base for data analytics in SME.

4.2 Research Context

In continuation to above, it is observed that extant literature is highly contextual in nature. The
studies are based on contextual factors like country, type of SME, organisation functions, and
environmental factors. Considering SMEs as a backbone of an economy, a large amount of research
studies is representing only few countries such as United States, Africa, India, Spain and Italy (refer
to fig 2). Subsequently, these research studies are either case based or at firm level, therefore it is
difficult to draw a larger perspective. Another contextual factor is the type of SME. The available
published research articles are largely focusing on few sectors like manufacturing, retail, software,

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Table 4. Major research gaps and future research avenues

Research Gaps Identified Suggestions for future research

Integration in data analytics and internal Expanding studies that integrate data analytics with internal and
resources is limited external resources that enhance SME capabilities
Few studies focus on technology advancement Expanding focus of technology advancement as a long-term change
and data analytics as a process of change through transformation and cultural shift in SME
Limited studies show cross-functional use and Investigating data analytics cross-functionally in SME may create a
adoption of data analytics deeper understanding
Limited attention on universalistic perspective of Investigating ‘best practices’ through cross-industry, cross-country
data analytics in SME and cross-cultural analysis may impact the adoption
Pressing need of data analytics in SME is due Investigating acquisition of data and adoption of data analytics in
dynamic environment SME as competitive advantage
Few research studies focus on data-driven culture Further study on data-embedded culture in SME and their
in SME performance may add business value
Lack of theoretical and conceptual grounding in Examining the dimension based on theoretical framework may
research studies strengthen the research domain

and services, leaving behind many other sectors like healthcare, education, and agriculture. Another
set of research study have focus on explaining the relationship between technology adoption and its
impact on a specific function of the organisation. These functions are marketing, finance, supply
chain and IT while most of these studies cover the functionality aspect of organisation, they tend
to miss out a linkage between the functions and across the organisation. Furthermore, contextual
factor is environment, most of the research studies have explained the need of data analytics in the
background of competition, entrepreneurship, and digitisation. Therefore, even after massive research
development in the field of data analytics, SMEs adopt data analytics due to external pressure instead
of internal requirement. To sum up, future studies may take up research in other countries particularly
emerging economies, unexplored category of SMEs, understudy other functions like human resource,
CSR etc. and highlight use of data analytics as a long-term strategic plan for SMEs sustainability.

4.3 Research Methodology

The research studies used four types of research methodology namely quantitative, qualitative,
theoretical, and conceptual (refer table 2). While most of studies used quantitative method, approx.
57%, very few have used theoretical method, around 12%. As suggested by Whetten (1989) that
theoretical research papers intend to raise new theoretical questions to fundamental structure of an
existing theory, it is essential to develop new or integrate existing theories to build a strong foundation.
These are also known as “ivory tower” that demonstrate a logical exploration of a system of beliefs
and assumptions. (Edgar & Manz, 2017) Across the research studies, only few theories like resource-
based theory, balance scorecard and technological-organisational-environmental (T-O-E) framework,
were used. Future studies may exploit the role of other multidisciplinary theoretical framework like
stakeholder’s theory, entrepreneurship theories, value chain framework and socio-technical theories
to strengthen the research domain.

5. IMPLICATION AND LIMITATION OF THE STUDY

From theoretical implication standpoint, the present research study offers a broad overview of existing
high-impact published research articles on data analytics in SME, covering known and not-so known
research themes in the domain. The identified research gaps were addressed by two research questions.

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RQ1 was answered with systematic literature review of 42 research articles, wherein four broad
research themes were recognised. These research themes outlined the core dimensions from existing
literature and direction of research findings. To answer RQ2, the unaddressed research areas were
identified across the published research articles in terms of research focus, context, and methodology,
thereafter, these were presented as future research insights. It extends the existing literature on data
analytics and SME research domain.
From practical implication standpoint, despite of several research validating the direct contribution
of data analytics in firm performance, SMEs are still hesitant to invest in data analytics, therefore the
present research study suggests few recommendations to practitioners and policy makers.

• For Practitioners, few initiatives at strategic, tactical, and operational level can support the
acquisition and adoption of data analytics in SMEs. First, the positioning of data analytics in
business strategy may cultivate a data-driven culture. Increased use of data-driven decision-
making process can entirely build a new insight about consumer, market, and competition. Second,
the multidimensional capability of data analytics such as data visualisation, predictive tools, trend
analysis at tactical level can build new generations of models that have high likelihood to stay
with times (Ferraris, et. al., 2018). Third, while taking into consideration specific requirements
in workforce, SMEs may invest in competency building initiative like training, upskilling and
education that can lead to appropriate implementation of data. Based on resource-based view
(RBV) of competitive advantage, the long-term survival of SMEs depends upon its unique
offerings based on internal resources (Zhao & Morgan, 2017). Smart investment in data acquisition
and adoption can create an inimitable and nonsubsitutable internal resource. Thus, data-driven
resources can be generated as rare, valuable, and firm specific capability that leads to better
performance and competitiveness in long run.
• For policy makers, few steps at macro, meso, and micro level may widen the scope of data
adoption and acquisition in SMEs. At macro level, promotion, and adoption of technology
through strategic resource centre like technology hubs, SME schemes, etc within each industry
can enhance deployment of data analytics in SME. Many developed economies such as UK,
US, France, Australia have used strategic resource centre, likewise, same can be replicated
in emerging economies. At meso level, policy support to easy access of loans at low interest,
schemes for technical skill development, funds specific to technology promotion etc can extent
the application of data analytics and allow to calibrate domain expertise of SMEs for greater
competitive power. At micro level, technology enabled hi-tech SMEs are uniquely characterised
with high flexibility (Alves, 2020) and firm specific framework of adopting advanced analytical
tools can result in quick returns.

Despite of rigorous research methodology performed in systematic literature review; this study
too has some limitations unlike all research studies. While considering the results of the study,
policy makers and researcher should deliberate upon following limitations. First, based on protocol
development only relevant published research articles from Scopus and google scholar databases
through keyword search in text, were extracted. Under such circumstances, sometimes the probability
of not adding a potential research article exists. Second, published research work from books and
conference proceedings were not considered in the present study as it only includes peer-reviewed
published research articles from prominent journals of business, economic and social sciences. Last,
although the clustering of research themes was a systematic step-by-step procedure, but the themes
represented may not be mutually exclusive. There may exists some overlap and cross alignment among
sub themes due to presence of common factors. In the end, the present study offers a comprehensive
overview of known and not-so known research themes in the research domain of data analytics in SME.

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ACKNOWLEDGMENT

Thankful to Prof Pratibha Jha from the area of data analytics. A trainer, practitioner, and educator
to provide her valuable feedback and review on the study. Her suggestion helped in better formation
and representation of the research study.

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