How to improve firm performance using big data analytics capability and business strategy alignment?
Abstract
The recent interest in big data has led many companies to develop big data analytics capability (BDAC) in order to enhance firm performance (FPER). However, BDAC pays off for some companies but not for others. It appears that very few have achieved a big impact through big data. To address this challenge, this study proposes a BDAC model drawing on the resource-based theory (RBT) and the entanglement view of sociomaterialism. The findings show BDAC as a hierarchical model, which consists of three primary dimensions (i.e., management, technology, and talent capability) and 11 subdimensions (i.e., planning, investment, coordination, control, connectivity, compatibility, modularity, technology management knowledge, technical knowledge, business knowledge and relational knowledge). The findings from two Delphi studies and 152 online surveys of business analysts in the U.S. confirm the value of the entanglement conceptualization of the higher-order BDAC model and its impact on FPER. The results also illuminate the significant moderating impact of analytics capability–business strategy alignment on the BDAC–FPER relationship.
DOI
10.1016/j.ijpe.2016.08.018
Publication Date
2016-12-01
Publication Title
International Journal of Production Economics
ISSN
0925-5273
Embargo Period
2018-02-21
Organisational Unit
Plymouth Business School
Recommended Citation
Akter, S., Fosso, W., Gunasekaran, A., Dubey, R., & Childe, S. (2016) 'How to improve firm performance using big data analytics capability and business strategy alignment?', International Journal of Production Economics, . Available at: https://doi.org/10.1016/j.ijpe.2016.08.018