Exploring the relationship between supplier development, big data analytics capability, and firm performance

Abstract

Extant research shows that big data analytics (BDA) capability is often employed as a part of organizational resources to enhance firm performance. Drawing upon the resource-based view, dynamic capabilities, and contingency theory, this study endeavors to examine the alignment between BDA capability and a specific type of procurement strategies (i.e., supplier development) and its impact on firm performance. The study extends the BDA capability research by investigating the direct impact of BDA capability on supplier development and firm performance, respectively, and by exploring both mediating and moderating effects on the relationship between supplier development and firm performance. The main results show that a firm’s BDA capability has not only a direct positive significant impact on supplier development, but also a direct positive significant impact on its business performance. More importantly, the results indicate strong moderating and mediating effects of BDA capability on supplier development, which in turn affects the improvement of firm performance. Theoretical and managerial implications along with future research directions are provided in the end.