Big Data Value Proposition in UK Facilities Management: A Structural Equation Modelling Approach

Abstract

Big data analytics (BDA) has been introduced in the past few years in most industries as a factor capable of revolutionizing their operations by offering significant efficiency opportunities and benefits. To compete in this digital age, businesses must adopt a client-centric service model, founded on data delivering continuous value and achieving optimal performance, whilst also upgrading their own decision-making and reporting processes. This article aims to explore how UK FM organizations are currently capitalizing on BDA to drive innovation and ‘added value’ in their operations. The objective is to shed light on the initial BDA adoption efforts within the UK’s FM sector, particularly capturing the benefits experienced by FM organizations in relation to customer value and improved decision-making processes. Drawing upon exploratory sequential research including a qualitative stage with 12 semi-structured interviews and an industry-wide questionnaire survey with 52 responses, a novel fifteen-variable model for BDA outcomes was developed. Exploratory Factor Analysis (EFA) and a Higher-Order model using Partial Least Square Structural modelling (PLS-SEM) were used to validate the scale. The EFA output generated three dimensions with 14 items. The dimensions included Improved client value, FM business operations added value, and Improved efficiency added value. Furthermore, the results of PLS-SEM confirmed the validity of the scale items and the reflective–formative measurement model. The findings suggest that the contemporary digitization trend offers the FM service the unique opportunity to develop a smarter, client-centric strategy resulting in more personalized services and stronger customer relationships. Furthermore, efficient resource management and planning powered by analytics and data-driven insights emerge as a key driver for competitive differentiation in the field. As one of the first studies to develop and validate scale items measuring specific dimensions of BDA adoption outcomes, the study makes significant contributions to the literature.

Keywords

• big data
• digitization
• facilities management
• partial least square structural modelling (PLS-SEM)
• Industry 4.0