The effect of big data analytics capability on firm performance: A pilot study in China

Abstract

Big data analytics (BDA) becomes a critical phenomenon today that brings revolution to firms in different ways, yet how firms create BDA capability that reflects on firm performance (FPER) in specific industry sectors is not yet clear, with the majority of existing studies taking cross-sector perspectives. This study addresses this gap by focusing on Consumer-Packaged Goods (CPG) & Retail industries in China, drawing on the resource-based view (RBV), and BDA literature. This paper presents the first pilot stage of the study, using a limited sample to derive an initial model of the relationship between BDAC and FPER, hypothesizing that it is partially mediated by the Digital Dynamic Capability (DDC). Apart from laying the foundation for the second stage of a more focused study by validating a measurement model, the analysis of the hypothesized structural model confirms some of the initial hypotheses. The results of our studies will benefit executives who face decision making before and after BDA investment. The insights from this study may help firms avoid unnecessary mistakes, and provides immediate contributions in developing and configuring firm-specific BDAC for enhancing firm performance.