Business analytics has the potential to deliver performance gains and competitive advantage. However, a theoretically grounded model identifying the factors and processes involved in realizing those performance gains has not been clearly articulated in the literature. This paper draws on the literature on dynamic capabilities to develop such a theoretical framework. It identifies the critical roles of organizational routines and organization-wide capabilities for identifying, resourcing and implementing business analytics-based competitive actions in delivering performance gains and competitive advantage. A theoretical framework and propositions for future research are developed.