How to improve firm performance using big data analytics capability and business strategy alignment? 
International Journal of Production Economics
, 182
, 113-131. 2016.
Author(s): Shahriar Akter. Samuel Fosso Wamba. Angappa Gunasekaran. Rameshwar Dubey. Stephen J. Childe.
Topics: IT competence Business – IT alignment Data & Business analytics
Country: USA
SHARE
Objective and main results
This study aims to examine the role of big data analytics capability (BDAC) for firm performance. It identifies important dimensions of BDAC and emphasizes the complementarities between them for improved performance and sustained competitive advantage.
Main findings:
- The findings show that BDAC consists of three primary dimensions (i.e., management, technology, and talent capability) and 11 subdimensions (i.e., planning, investment, coordination, control, connectivity, compatibility, modularity, technology management knowledge, technical knowledge, business knowledge and relational knowledge).
- BDAC positively impacts firm performance
- The extent to which BDAC is aligned with the overall strategy of the organization influences the relationship between BDAC and firm performance.
Summary of practical implications
The results provide managers with an understanding of the antecedents of overall BDAC and its relationship with the individual capability dimensions. To improve BDAC and firm performance, organizations should emphasize BDA management, technology, and talent capabilities.
- BDA management capability can be enhanced by improving the quality of planning, investment, coordination, and control.
- BDA technology capability can be improved by enhancing the performance of the BDA platform in terms of connectivity, compatibility, and modularity.
- BDA talent capability can be upgraded by recruitment and/ or training to achieve better skills and knowledge of the workforce.
Firms should ensure a tight alignment between analytics efficiency and strategy.