Exploring the Relationship between Big Data Analytic Capability and Business Performance

Abstract:

This study extends the existing research by examining the direct effects of big data analytic capability on business performance, as well as the mediating effects of dynamic capabilities on the relationship between big data analytic capability and business performance. Big data analytic capability can catalyze the ability of firms to improve their business performance, but there is little research to explore the mediating role of technological and managerial capabilities. To address these gaps in the literature and a conceptual model was developed to test the hypotheses between these variables. The research methodology was based on quantitative method and a cross-sectional study. We employed a structural equation model (SEM) to test our conceptual model using questionnaire data from a sample of PhD students enrolled in the A-Success project from University Politehnica of Bucharest (UPB), Romania, working in different companies. As expected, we found that management, and technological capabilities mediate the relationship between big data analytic capability and business performance. This finding suggest that firms should look beyond direct effects of big data analytic capability on business performance and to investigate the mediating effects of technological and managerial capabilities to improve the business performance. This study attempts to contribute to the literature through novel findings and recommendations. These findings require further investigation in future research on theories, and practices for academic leadership development. Finally, implications for practice are discussed, and future research directions are proposed considering the limitations of our study.