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

Area of Science:

• Business Management
• Information Systems
• Organizational Studies

Background:

• Big data analytics (BDA) is recognized for its transformative potential in business.
• A gap exists in understanding how organizations operationalize BDA for strategic goals.
• Limited empirical evidence links BDA to enhanced organizational transformational capacity.

Purpose of the Study:

• To investigate the relationship between big data analytics management capabilities (BDAMC) and innovation performance.
• To examine the mediating role of dynamic capabilities (DC) in this relationship.
• To explore how BDAMC influences DC through strategic alignment and social capital.

Main Methods:

• Partial Least Squares Structural Equation Modeling (PLS-SEM) technique was employed.
• Data was collected from 149 firms.
• The study is grounded in dynamic capability and social capital theories.

Main Results:

• BDAMC significantly enhances innovation performance through dynamic capabilities.
• BDAMC effectively strengthens dynamic capabilities.
• Strategic alignment and social capital were identified as key mechanisms through which BDAMC enhances DC.

Conclusions:

• Organizations can leverage BDAMC to improve innovation performance.
• Developing dynamic capabilities is crucial for realizing the benefits of big data analytics.
• Firms should focus on strategic alignment and fostering social capital to maximize BDAMC's impact.