Unravelling the relationship between a firm’s big data analytics capability and the realization of a competitive advantage: an IT business value approach

Big Data Analytics (BDA) has the potential to transform business models, firms and the competitive landscape. Though, creating value from BDA investments seems challenging as many technical and managerial challenges are involved. Due to its complexity, the value generated from big data depends on how well a firm’s Big Data Analytics Capability (BDAC) is developed. Drawing on the Resource Based View (RBV), the IT business value approach and the BDAC literature, we study the relationship between a firm’s BDAC and the realization of a competitive advantage. We used survey data from multiple respondents per firm (i.e. IT managers and Business managers) in 112 Belgian and Dutch firms. Using PLS-SEM, we found a direct relationship between a firm’s BDAC and the perceived realization of a competitive advantage. We also found a partial mediation of this relationship via the performance of the firm’s operation management process