Title: The strategic role of business analytics adoption, knowledge retention and dynamic capability to achieve sustainable competitive advantage

Authors: Dian Alanudin; Budi W. Soetjipto; Athor Subroto

Addresses: Faculty of Economics and Business, University of Indonesia, FEB UI Dean Building, Widjojo Nitisastro Campus, Jl. Prof. Dr. Sumitro Djojohadikusumo, UI Depok, West Java 16424, Indonesia ' Faculty of Economics and Business, University of Indonesia, FEB UI Dean Building, Widjojo Nitisastro Campus, Jl. Prof. Dr. Sumitro Djojohadikusumo, UI Depok, West Java 16424, Indonesia ' Faculty of Economics and Business, University of Indonesia, FEB UI Dean Building, Widjojo Nitisastro Campus, Jl. Prof. Dr. Sumitro Djojohadikusumo, UI Depok, West Java 16424, Indonesia

Abstract: In today's turbulent digital landscape, create competitive advantage sustainability is the bedrock upon which successful businesses are built. Unfortunately, companies often lack this requisite expertise and strategies. This study aims to investigate the relationship between competitive advantage, knowledge retention, dynamic capability, and business analytics. Involving 327 companies, a set of questionnaires was analysed. The paper utilised structural equation modelling to test hypotheses in the proposed research model. This study reveals that competitive advantage can be built through knowledge retention and dynamic capability. Business analytics indirectly enhances competitive advantage. The relationship between business analytics and knowledge retention proves stronger than a direct link to dynamic capability. Business analytics efficiently analyses data to gain critical insights, detect emerging trends, and anticipate customer needs. Knowledge retention transforms business operations by streamlining processes, reducing costs and introducing innovative products and services. Dynamic capability is essential to navigate the constant disruptions in today's business environment.

Keywords: business analytics; competitive advantage; dynamic capability; knowledge retention.

DOI: 10.1504/IJSOM.2026.154596

International Journal of Services and Operations Management, 2026 Vol.54 No.2, pp.253 - 270

Received: 19 Dec 2023
Accepted: 29 Dec 2023
Published online: 07 Jul 2026 *

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