Business analytics involves interpreting organizational data to improve decision-making and to optimise business processes. It has the potential to improve firm performance and increase competitive advantage. Although many case studies have been reponed that describe business analytics applications and speculate about how they might contribute to firm performance, there is no clearly articulated and theoretically grounded model in the literature. This paper proposes a theoretical framework jor understanding how and why business analytics technology and capabilities can lead to value-creating actions that lead to improved form performance and competitive advantage. We jocus particularly on how strategy and maturity impact business analytics and firm performance. A number oj propositions are developed from the framework and a research agenda jor empirical evaluation and enhancement of the framework is proposed.