Business intelligence and analytics for value creation: The role of absorptive capacity

•We extend the theoretical understanding of how BI&A triggered insights are transformed into valuable knowledge.•We found increased attention to the role of BI&A in organizational knowing.•Empirical findings showed the absorptive capacity underlie the process of knowledge generation from BI&A insights.•We identified technological, human, and relationship assets to underpin the BI&A value creation process. Firms continuously report increased competitive value gains from the use of business intelligence and analytics (BI&A), however, little is known about how insights from BI&A are transformed to added value to date. We have conducted fourteen in-depth, semi-structured interviews with a sample of informants in CEO positions, IT managers, CIO, Heads of R&D, as well as Market Managers from nine medium or large-sized European firms. Applying the absorptive capacity’s theoretical lens, we have provided evidence that absorptive capacity’s capabilities are an underlying foundation in the process of transforming BI&A triggered insights into valuable knowledge. Moreover, this process is supported by technological, human, and relationship assets.