A practice for formulating an effective data-led strategy

Abstract

This study is positioned to propose the enabling factors leading to the practice of formulating an effective data-led strategy (EDLS). Through the theoretical lenses of the resource-based view, absorptive capacity and attention-based view, from information systems theory, suitable first order constructs are proposed in relation to the second order constructs of resources, absorptive capacity and attention. These form antecedents to the higher order construct of EDLS. Through a quantitative analysis, electronic surveys are used as a mechanism to collect data from managers within medium to large organisations, that have experience in both the elements of strategy and big data analytics. Leveraging a component analysis, reliability and validity testing, together with model assessment through the adoption of partial lease squares structural equation modelling, a structural model and associated measurement scale was developed, that has seven first order constructs which are related through the three second order constructs. Not only has the study provided a theoretical model for the practice of achieving an EDLS but also enables managers in pursuit of data-led strategies to effectively manage resources, absorb relevant knowledge and focus their attention, aligned with their big data-related activities, to achieve the desired outcome of a competitive advantage.