Toward the development of a big data analytics capability

Abstract

The era of big data has begun such that organizations in all industries have been heavily investing in big data initiatives. We know from prior studies that investments alone do not generate competitive advantage; instead, firms need to create capabilities that rival firms find hard to match. Drawing on the resource-based theory of the firm and recent work in big data, this study (1) identifies various resources that in combination build a big data analytics (BDA) capability, (2) creates an instrument to measure BDA capability of the firm, and (3) tests the relationship between BDA capability and firm performance. Results empirically validate the proposed theoretical framework of this study and provide evidence that BDA capability leads to superior firm performance.