Big data analytics effect on competitive performance: Mediating role of business model innovation

Abstract

Purpose: Big Data Analytics Capabilities (BDAC) facilitate the generation of critical insights required for competitive performance. This study evaluates the relationship between Big Data Analytics Capabilities and competitive performance and argues the effect is mediated by Business Model Innovation (BMI). This is assessed through the theoretical lens of Dynamic Capabilities, where Big Data Analytics Capabilities enabled sensing identification opportunities that initiate the mobilisation of resources to transform firms’ business models, via BMI, to enhance performance.

Design/methodology/approach: A quantitative research approach using a survey was utilised. Data from 272 firms were collected.

Findings/results: The research model is evaluated by Partial Least Squares Structural Equation Modelling. The findings show that Big Data Analytics Capabilities have a direct and indirect influence on competitive performance, where BMI mediates the latter. The results enrich Dynamic Capabilities, Big Data Analytics Capabilities and BMI literature by demonstrating that Big Data Analytics Capabilities have a positive effect on BMI and subsequently competitive performance, to create value for firms and their stakeholders.

Practical implications: Practitioners need to invest in Big Data Analytics Capabilities to enhance the probability of success of their BMI endeavours.

Originality/value: Firstly, organisations’ efforts in nurturing big data infrastructure, human resources, and data-driven cultures drive actions that enhance both operational and strategic execution, leading to enhanced performance. Secondly, the positive effect of Big Data Analytics Capabilities is carried through BMI to influence competitive performance positively, thus suggesting that the sensing enabled by Big Data Analytics Capabilities leads to transformational activities that drive performance.