Examining the Effects of Big Data Analytics Capabilities on Firm Performance in the Malaysian Banking Sector

Abstract

Banks’ primary goal is to gain profit for survival and to thrive. Therefore, they have to take various measures, such as data analysis, to maintain their sustainable competitiveness. Along with the rapid development of information technology, big data analytics capabilities (BDAC) is considered essential for banks in the highly dynamic market. To gain an in-depth understanding of the economic importance of BDAC in the banking sector in Malaysia, this research examines the relationship between BDAC and firm performance (i.e., market performance and operational performance) based on the resource-based view (RBV) and the contingent resource-based view (CRBV). The partial least squares structural equation modelling (PLS-SEM) was adopted to analyse the collected data from 162 bank managers in Malaysia. The findings verify that BDAC is composed of seven tangible/intangible resources and human skills, and it significantly influences firm performance in the banking sector.