Impact of Big Data Analytics Competency on Firm Performance with Mediating Role of Decision Making Performance and Innovation Capability

Abstract

Big data analytics is emerging as a game changing capability which generates valuable insights and reveals new patterns to keep organizations up-to-date and plan their moves accordingly. This research study aims at exploring the contribution of big data analytics competency in improved firm performance and those underlying resource dimensions which drives the high level of BDAC. Based on estimated population of both the sectors, Cochran formula has been used to calculate the sample size for current research. Empirical results obtained through quantitative analysis of data collected from 300 employees of such firms which are practicing big data analytics in their units; specifically of telecommunication and banking corporations across Pakistan identified that performance of a firm significantly increases when high level of big data analytics competency is developed and that the decision making performance and innovation capability mediates this relationship. In addition, findings of the current study demonstrate that big data analytics competency of a firm makes a positive and significant contribution in its decision making performance such that higher level of former-mentioned variable (i.e. BDAC) will results in improved performance of later one (i.e. DMP). The study therefore, significantly contributes to the domain of big data analytics management and organization performance and draws the attention of researchers as well as practitioners to consider the behavior of decision making performance and innovation capability in this association while suggesting the potential for future researchers to explore this relationship with possible moderators like top management support, employees commitment or readiness for change.