How to improve firm performance using big data analytics capability and business strategy alignment

Abstract

The current fascination with big data has some organizations make big data analytics activities to improve firm performance. Thus, regarding big data analytics capability, it might work for some companies but not for others. It seems that almost no one has made a significant difference through big data. To address this challenge, this study suggests a big data analytics capability model based on the resource-based theory and the entanglement view of socio-materialism. The results show the big data analytics capability hierarchy, which has three basic components (i.e., management, technology, and employee capability) and eleven subcomponents (i.e., planning, investment, coordinating, controlling, connectivity, compatibility, modularity, technology management skills, technical skills, business skills, and relational skills). Through Delphi studies together with online surveys of business analysts at the organization, the entanglement perspective of the high-order big data analytics capability model and its impact on firm performance was affirmed. This article investigates how organizations capitalize on big data analytics to create a sustainable competitive edge and progress business efficiency through big data analytics. On the other hand, the study delineates different resources and sub-capabilities which it takes to develop the big data analytics capability.