Big data value creation : an entanglement of capabilities view-findings from PLS-SEM and fsQCA

Abstract

In an era of discontinuous change, organisations are constantly seeking out Ôinflection pointÕ strategies to respond to threats and opportunities and create sustainable performance. Much research has evangelised the role of big data in organisations as an enabler for competitive performance by informing better decision making. However, very few organisations have achieved the promise of big data. This research draws on the theories of dynamic capability, sociomaterialism and paradox dynamics to provide an entanglement of capabilities view to assess the complex interactions between Big Data Analytics Capabilities (BDAC), Distinct Dynamic Capabilities (DDC) and Firm Performance (FPer). This research therefore closes the gap between Information Systems (IS) and Strategic Management (SM) research. A higher-order reflective structural model was developed and assessed with 155 online survey responses. The hypothesised interactions were evaluated through PLS-SEM and fsQCA statistical methods. The findings reported statistical significance between BDAC and FPer, BDAC and DDC and DDC and FPer. More importantly, a full indirect mediation of the interaction of DDC on the BDAC Ð FPer relationship was reported. The results of this research study provide insights for both business and academia through the entanglement of capabilities view of the mechanisms through which big data can effectuate value in dynamic environments.