Effect of Big Data Analytics in Optimizing Cost Management for Nigerian Manufacturing Firms

This study examines the effect of Big Data Analytics (BDA) on optimizing cost management in Nigerian manufacturing firms, with specific focus on cost reduction, process efficiency, financial performance, and the factors influencing BDA adoption and implementation. The study was conducted in Enugu State, Southeast Nigeria, involving 15 medium-to-large manufacturing firms across sectors such as food and beverages, plastics, and building materials. Using a mixed-methods approach, data were collected from 150 respondents through structured questionnaires based on the Technology–Organization–Environment (TOE) framework and the Technology Acceptance Model (TAM), complemented by semi-structured interviews and secondary financial records. Quantitative data were analyzed using regression and Structural Equation Modeling (PLS-SEM), while qualitative data were examined through thematic analysis. The findings reveal a very strong positive relationship between BDA and cost management outcomes. BDA practices significantly improved cost reduction (R² = 0.897), process efficiency (R² = 0.923), and financial performance (R² = 0.912). Specifically, data-driven cost monitoring, strategic cost management, and analytics-supported decision-making were key drivers of improved performance. Furthermore, management support, availability of skilled personnel, and robust IT infrastructure were found to significantly enhance BDA implementation, whereas high technology cost constituted a major barrier. The study concludes that Big Data Analytics is a strategic managerial tool that enables Nigerian manufacturing firms to control costs, streamline operations, and improve profitability. Effective adoption of BDA requires strong leadership commitment, investment in human capital, and supportive technological infrastructure. The study therefore recommends increased organizational and policy support for analytics-driven transformation in Nigeria’s manufacturing sector to promote competitiveness and sustainable growth