Impact of big data analytics capabilities on competitive advantage and firm performance in the Sri Lankan context

Abstract

Purpose: This research investigates the relationship between Big Data Analytics Capabilities (BDAC) and business performance in Sri Lanka, a developing market. The study specifically evaluates how BDAC influences Competitive Advantage (CA) and firm performance (FP). Additionally, it considers the moderating roles of organizational culture, dual innovation, and the alignment of business strategy Approach/Design/Methodology: The present study utilizes the Resource-Based View (RBV) and Dynamic Capability View (DCV) frameworks to construct a theoretical model and develop hypotheses. Data were collected using a virtual snowball sampling method from a sample of 308 participants, including CEOs, CIOs, IT managers, data scientists, analysts, and business analysts, across various industries in Sri Lanka. Results: The study's findings reveal that firms with strong big data analytics capabilities (BDAC) can gain a competitive advantage. The research demonstrates that BDAC significantly enhances both competitive advantage (CA) and firm performance (FP). analysis shows that BDAC explains 50% of the variance in CA (R² = 0.50) and, together with CA, explains 71% of the variance in FP (R² = 0.71). Further, the study explored the role of moderating variables. The combination of BDAC and Dual Innovation (DI) explains 76% of the variance in Competitive advantage (CA), while the combination of BDAC × Business Strategy Alignment (BSA) and CA × Organizational Culture (OC) explains 80% of the variance in FP. Originality/Value: This study distinguishes itself by exploring the impact of BDAC on firm performance in Sri Lanka, a frontier market, while highlighting the moderating effects of organizational culture, dual innovation, and business strategy alignment. By analyzing these elements, the research offers valuable insights to help companies craft effective strategies for leveraging BDAC to enhance performance within Sri Lanka's unique economic context.