How do firms create business value and dynamic capabilities by leveraging big data analytics management capability?

Abstract

Despite researchers having averred that big data analytics (BDA) transforms firms' ways of doing business, knowledge about operationalizing these technologies in organizations to achieve strategic objectives is lacking. Moreover, organizations' great appetite for big data and limited empirical proof of whether BDA impacts organizations' transformational capacity poses a need for further empirical investigation. Therefore, this study explores the association between big data analytics management capabilities (BDAMC) and innovation performance via dynamic capabilities (DC), by applying the PLS-SEM technique to analyzing the feedback of 149 firms. Consequently, we ground our arguments on dynamic capability and social capital theory rather than a resource-based view that does not provide suitable explanations for the deployment of resources to adapt to change. Accordingly, we advance this research stream by finding that BDAMC significantly enhances innovation performance through DC. We also extend the literature by disclosing how BDAMC strengthens DC via strategic alignment and social capital.