Abstract
This study draws on the dynamic capabilities view and the firm’s big data capability (BDC) in the new economic environment. It constructs an adjusted intermediary model to study the mechanism of BDC, strategic flexibility, and environmental dynamic affecting financial performance. We find that strategic flexibility plays an intermediary role in the “Converse-U” relationship between BDC and financial performance. Environmental dynamics adjust the relationship between BDC and financial performance positively and smooth the “Converse-U” relationship. The findings suggest building and managing BDC, combining BDC with the management process, and achieving continuous financial performance improvement in a dynamic environment. The paper also puts forward the nonlinear hypothesis, discusses the “Converse-U” relationship between BDC and enterprise financial performance in the Chinese context of digital economy explosion and growth, and considers the intermediary mechanism of strategic flexibility and the regulatory effect of environmental dynamics.
Highlights
The large-scale outbreak of coronavirus disease 2019 (COVID-19) in early 2020 posed a huge challenge to the survival and development of enterprises
The contribution of this research to the current mainly includes the following three points: First of all, this paper puts forward the nonlinear hypothesis, discusses the “Converse-U” relationship between big data capability (BDC) and enterprise financial performance, which offers a possibility of researching the relationship between the two; In addition, this paper explores the mechanism of BDC affecting performance in the Chinese context of digital economy explosion and growth and considers the intermediary mechanism of strategic flexibility and the regulatory effect of environmental dynamics
This paper verifies the nonlinear relationship between BDC and financial performance based on a previous study
Summary
The large-scale outbreak of coronavirus disease 2019 (COVID-19) in early 2020 posed a huge challenge to the survival and development of enterprises. It is considered that BDC is the dynamic capability of enterprises to filtrate, integrate, reconstruct, and utilise massive internal and external data resources and transform them into unique advantages to support enterprises’ strategic transformation and operation decisions in the changing environment (Rijmenam et al, 2018). As the new functioning capital and vital resource of enterprises, the strategic significance of big data lies in the professional processing of massive data, providing necessary real-time information for enterprise decision-making, realising accurate prediction of customer and market demand, and maintaining the long-term competitive advantage of the enterprises It is reflected in improving financial performance, including profit growth, business development, and advance in return on assets (Harris and Davenport, 2007; Barton and Court, 2012; Chen et al, 2015).
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