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Big Data, Marketing Analytics, and Firm Marketing Capabilities

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While big data, marketing analytics, and firm marketing capabilities are all potential drivers of competitive advantage, there is limited research that investigates the interrelationship between them. This study aims to address this gap by examining the mechanisms through which big data and marketing analytics can be used to enhance firm marketing capabilities. Drawing on the dynamic capability view, a research model is developed and tested based on an analysis of 316 survey responses. The findings demonstrate positive effects of the use of big data on the use of marketing analytics, and the latter’s effect on firm marketing planning, marketing implementation, brand management, customer relationship management, and product development management. This study helps advance our understanding of firm marketing capability-enhancing processes through the use of big data and marketing analytics. It also provides practical implications to guide firms in using big data and marketing analytics to improve their marketing capabilities.
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Big Data, Marketing Analytics, and Firm Marketing
Capabilities
Guangming Cao , Na Tian & Charles Blankson
To cite this article: Guangming Cao , Na Tian & Charles Blankson (2021): Big Data, Marketing
Analytics, and Firm Marketing Capabilities, Journal of Computer Information Systems, DOI:
10.1080/08874417.2020.1842270
To link to this article: https://doi.org/10.1080/08874417.2020.1842270
Published online: 05 Feb 2021.
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Big Data, Marketing Analytics, and Firm Marketing Capabilities
Guangming Cao
a
, Na Tian
b
, and Charles Blankson
c
a
Ajman University, Ajman, UAE;
b
Northwestern Polytechnical University, Xi’an, China;
c
University of North Texas, Denton, TX, USA
ABSTRACT
While big data, marketing analytics, and firm marketing capabilities are all potential drivers of compe-
titive advantage, there is limited research that investigates the interrelationship between them. This
study aims to address this gap by examining the mechanisms through which big data and marketing
analytics can be used to enhance firm marketing capabilities. Drawing on the dynamic capability view,
a research model is developed and tested based on an analysis of 316 survey responses. The findings
demonstrate positive effects of the use of big data on the use of marketing analytics, and the latter’s
effect on firm marketing planning, marketing implementation, brand management, customer relation-
ship management, and product development management. This study helps advance our understand-
ing of firm marketing capability-enhancing processes through the use of big data and marketing
analytics. It also provides practical implications to guide firms in using big data and marketing analytics
to improve their marketing capabilities.
KEYWORDS
Big data; marketing
analytics; dynamic
capability; firm marketing
capabilities
1. Introduction
The dynamic capability view, defined as “the capacity of an
organization to purposefully create, extend, and modify its
resource base”,
1
[p. 94], suggests that in order for a firm to
gain sustained competitive advantage in a rapidly changing
environment, the firm should be capable of sensing opportu-
nities, seizing opportunities by mobilizing resources, and
transforming the firm through continuous renewal.
2–4
Specifically, dynamic marketing capabilities are aimed at
developing, releasing, and integrating market knowledge and
resources to match and create market and technological
change.
5–7
Dynamic marketing capabilities become key
8
because they reflect the firm’s ability to engage in market-
based learning and further use the resulting insights to
achieve market effectiveness
6
and sustained competitive
advantage.
9,10
Research suggests that advance in modern
information technologies (ITs) is one of the most important
factors to enable dynamic marketing capabilities.
7,11
In parti-
cular, research suggests that firms can develop dynamic mar-
keting capabilities through utilizing big data/marketing
analytics [e.g.
9,12,13
]
Big data commonly refers to datasets that are very high in
velocity, volume, and variety.
14–16
Research suggests that big
data offers remarkable opportunities for firms across indus-
trial sectors [e.g.
17,1819,2021
] to gain useful insights into custo-
mers and operations, thereby improving their marketing,
22
decision-making,
23
new product development,
24,25
among
other areas. Expressly, big data becomes a significant disrup-
tor in online and offline marketing approaches,
26
deemed “the
new oil”,[
2728
p.1]. In contrast, marketing analytics pertains to
the collection, management, and analysis of big data to extract
useful insights to support marketing decision-making.
29–32
Some empirical studies [e.g.
9,29,33,34
] suggest that firms could
use marketing analytics to significantly improve, inter alia,
marketing decision-making, marketing effectiveness, new pro-
duct development, organizational performance.
However, despite evidence that big data, marketing analytics,
and firm marketing capabilities are all potential drivers of superior
performance, a few significant gaps remain. First, although the
extant literature has examined the performance impacts of big
data, many firms investing in big data often fail to attain the
expected advantages.
22,35
There is limited research on how firms
transform the potentials of big data into actual firm performance in
the competitive marketing environment.
13,36
Second, while analytics
arguably depends on the availability of big data, big data has rarely
been included as a construct by existing analytics studies [e.g.-
9,29,34,37
] Thus, the relationship between big data and analytics is
underdeveloped. Third, although the literature suggests that mar-
keting capabilities are important drivers of firm competitiveness
[e.g.,
6,11,38,39
] very little is known about how firms improve their
marketing capabilities [e.g.
31,40–42
] In particular, it was not until
recently that dynamic marketing capabilities and their performance
effects were being studied [e.g.
5–7
]; thus, scant research has exam-
ined how to build dynamic marketing capabilities.
8,39
Finally,
although analytics research [e.g.
43–46
] has shown that some firms
can use business/marketing analytics to improve their dynamic
capabilities
2–4
and eventually firm competitiveness [e.g.,
9,29,31
]
many firms are yet to obtain value from their analytics
investment.
47
In spite of the growing body of analytics studies [e.-
g.,9,29,33,34
] scholars still struggle to theorize the value realization of
big data analytics.
33,36
Thus, little research has systematically linked
big data and marketing analytics to organizational capabilities
33,44
and/or dynamic marketing capabilities.
9
Therefore, this study aims to examine one key research
question: what are the mechanisms through which big data
CONTACT Guangming Cao g.cao@ajman.ac.ae College of Business Administration, Ajman University, Ajman, UAE.
JOURNAL OF COMPUTER INFORMATION SYSTEMS
https://doi.org/10.1080/08874417.2020.1842270
© 2021 International Association for Computer Information Systems
and marketing analytics can be used to enhance firm market-
ing capabilities? To answer this question, this study develops
a research model to conceptually and empirically examine the
link from the use of big data and marketing analytics to firm
marketing capabilities, drawing on the dynamic capability
view
2–4
and literature on marketing capabilities [e.g.,
38,48,49
]
dynamic marketing capabilities,
5–7
and analytics [e.g.
9,43–45
]
Specifically, this study demonstrates that a firm can use big
data and marketing analytics to develop its market-sensing
capability [e.g.
48,5051
] to uncover meaningful marketing
knowledge and insights, which in turn enable the firm to
enhance its dynamic marketing capabilities by developing
and integrating market knowledge and resources,
5–7
thereby
seizing market opportunities.
2–4
The remainder of this paper is structured as follows. The
next section explicates the study’s theoretical background,
followed by hypotheses development. Then, the research
methodology is discussed, including research design, sampling
process, operationalization of constructs, and fieldwork, fol-
lowed by the data analysis and presentation of results. Finally,
theoretical and managerial implications, study limitations and
directions for future research are provided.
2. Theoretical background
2.1 Big data and marketing analytics
Big data often refers to datasets exhibiting key characteristics
such as high volume, high variety, and high velocity.
14–16
Although it is well recognized that big data could offer remark-
able opportunities for firms to gain useful insights to signifi-
cantly change for example online and offline marketing
approaches
26
and to improve business operations, processes,
and firm performance [e.g.,
22–24
] many firms investing in big
data often fail to attain the expected advantages
,2235
: “Most firms
are still stumbling around in the dark as they seek to fully
understand the function and capabilities of big data”[
52
, p.1].
On the other hand, limited academic research exists to examine
how to use big data to improve organizational decision-
making
53
and to sense and respond quickly to opportunities
for innovation.
13
In spite of big data applications becoming
pervasive in marketing research, researchers still struggle to
explain how firms realize value from big data.
14,36
Marketing analytics (descriptive, predictive, and prescriptive) is
a subdomain of business analytics
54
or big data analytics
47
that
supports marketing decision-making.
29–31
While a number of
empirical studies [e.g.
9,29,33,34
] suggest that firms could use market-
ing analytics to significantly improve marketing processes/opera-
tions, marketing effectiveness, and firm performance, scholars still
struggle to theorize the value realization of big data analytics [e.-
g.
13,33,36,44
] For example, while,
36
based on a literature review of 67
papers focusing on data analytics, calls for further empirical studies
to carefully examine how firms could actually realize value from big
data analytics,
44
suggests that extant analytics studies lack under-
standing of the mechanisms through which big data analytics may
lead to improved firm performance. Additionally, although a few
studies suggest that firms create value from a whole “big data chain”
consisting of big data and analytics [e.g.,
22,53,55,56
] extant analytics
studies have rarely included big data as a key construct [e.g.
9,29,34,37
]
Thus, the relationship between big data and analytics is under-
developed in the literature.
2.2 Dynamic capabilities and marketing capabilities
Organizational capabilities refer to “complex bundles of skills
and accumulated knowledge, exercised through organizational
processes, that enable firms to coordinate activities and make
use of their assets” [
48
, p. 38], which could be categorized into
dynamic and operational capabilities.
6,44,57
Operational capabil-
ities allow a firm to perform basic functional activities
58
focus-
ing on sustaining the status quo
59
to make its living in the short
term.
44
In contrast, dynamic capabilities explain how firms
attain and sustain competitive advantage in environments of
rapid technological change.
60
They are path dependent
4
and
future-oriented
6162
capabilities.
Operational marketing capabilities include advertising,
product development, channel management, marketing com-
munication, selling, marketing information management,
marketing planning, and marketing implementation.
63,64
Compared with these static marketing capabilities, dynamic
marketing capabilities, a subset of dynamic capabilities,
5
emphasize a firm’s cross-functional process-changing capabil-
ity to respond to market changes
10,65
by developing, releasing,
and integrating market knowledge and resources,
5–7
thereby
achieving market effectiveness
6
and sustained competitive
advantage.
9,10
Research indicates that when a firm emphasizes genera-
tion, dissemination, and responsiveness to market intelli-
gence, the firm will be able to better align its marketing
resources to respond to fast-changing markets
,49,5766
because
the firm’s static marketing capabilities become dynamic mar-
keting capabilities
49,57
, manifested in marketing decision-
making, product development management, supply chain
management, brand management, and customer relationship
management (CRM) [e.g.
8,9,39
]
However, despite that marketing capabilities are considered
important drivers of firm competitiveness [e.g.,
6,11,38,39
] enhan-
cing marketing capabilities is difficult
67
and the ways in which
firms improve their marketing capabilities remain underex-
plored [e.g.
31,40–42
] For example,
38
suggests that “very little is
known about how firms improve their marketing capabilities”
(p.736); and
40
emphasizes the need to “explain the mechanisms
leading to the creation and management of marketing capabil-
ities” (p. 369). In particular, while dynamic marketing capabil-
ities and their performance effects were studied recently
[e.g.,
5–7
] scant research has examined how to build dynamic
marketing capabilities.
8,39
Furthermore, although analytics
research [e.g.
43–46
] has shown that business/marketing analy-
tics can be used to improve firm dynamic capabilities,
2–4
scho-
lars still struggle to theorize the value realization of big data
analytics.
11,33,36
Thus, there is a gap in the literature for a study
to understand the under-researched link between big data,
marketing analytics, organizational capabilities
33,44
and/or
dynamic marketing capabilities.
9
2G. CAO ET AL.
3. Hypotheses development
Based on the above discussion, six testable hypotheses are repre-
sented in the following conceptual framework (Figure 1). These
five marketing capabilities are included because they are under-
stood to be some of the most important marketing constructs
[e.g.
26,68–71
] While the relationship between firm marketing
capabilities and competitive advantage has been well established
by prior marketing studies, this study has focused on the under-
researched relationships between big data, marketing analytics,
and firm marketing capabilities.
3.1 Linking big data and marketing analytics
Although a few scholars [e.g.
53,55
] suggest that big data and
analytics are different, the effect of big data on organizational
decision-making has received little attention in the
literature
53,72
in that big data has rarely been examined as
a construct. In particular, scholars [e.g.
53,55
] suggest that in
order to extract meaningful insights from big data, firms need
to develop two types of processes or capabilities: data manage-
ment and analytics, since “Big data without analytics is just
a massive amount of data. At the same time, analytics without
big data are simply mathematical and statistical tools and
applications”[
55
, p. 28]. In reality, while some firms find it is
challenging to unlock the benefit of their data because they
have analyzed less than 0.5% of all collected data,
17
others are
facing a different problem: their analytics initiatives are stifled
because they lack relevant data.
73
Thus, it is conceivable to postulate that a firm’s use of big
data enables it to be able to use marketing analytics more
effectively to uncover meaningful knowledge and insights
from the data. When big data and marketing analytics work
together, it is possible to model, analyze, and interpret big
data.
74
This is consistent with the idea that the joint use of
assets or combining resources in a firm is value enhancing,
2
synergistic,
7576
and advantageous [e.g.
77
] Therefore, this study
hypothesizes that:
H1: The use of big data has a positive effect on the use of
marketing analytics.
3.2 Linking the use of marketing analytics and firm
marketing capabilities
Analytics literature suggests that a firm’s use of marketing
analytics is the manifestation of its market sensing
capability,
9,45
referring to “analytical systems (and individual
capacities) to learn and to sense, filter, shape and calibrate
opportunities” [
2
, p. 1326], which in turn enables the firm to
develop its seizing and transforming capabilities [e.g.
44,45
]– as
manifested by the firm’s marketing capabilities.
9
First, the use of marketing analytics may significantly
enhance a firm’s ability to “extract previously unknown,
potentially useful, and interesting knowledge” [
78
, p. 363], to
glean intelligence
79
on customer lifecycle-encompassing
acquisition, retention, and expansion,
73
and/or “competitors’
key-product features, pricing strategies, and customer feed-
back” [
34
, p. 1563]. Essentially, learning about customers,
competitors, and the broader market environment using mar-
keting analytics helps the firm to better sense market threats
and opportunities [e.g.
9,44,45
]
Second, while knowledge is critical for any dynamic
capabilities,
76,80
the insights and knowledge derived from
the firm’s market sensing capability, as manifested by its
use of marketing analytics, are expected to provide the
knowledge foundation for the firm to further enhance its
other marketing capabilities.
38,41,57
For example, research
suggests that a firm using marketing analytics to develop its
sensing capability is able to make better strategic marketing
decisions
9,30
and to assist in implementing marketing
strategies
78
since sensing relates directly to the strategic con-
cept of diagnosis.
45
This means that a firm with such
a market-sensing capability is highly likely to further enhance
its marketing planning, its ability to conceive marketing
strategies that optimize the match between the firm’s
resources and the expectations of its customers,
64
and mar-
keting implementation, the processes by which intended
Figure 1. A conceptual framework showing the relationship between the use of big data, the use of marketing analytics and firm marketing capabilities.
JOURNAL OF COMPUTER INFORMATION SYSTEMS 3
marketing strategy is transformed into realized resource
deployments.
64
Product development could also be more successful when
big data is leveraged to gain customer insights to transform
new product development in dynamic marketplaces.
13,24
Similarly, firms gaining insights from its market sensing cap-
ability are more likely to have new product success.
34,41
Additionally,
78,81
suggest that a firm gaining higher levels of
marketing knowledge from data analytics will be more likely
to maximize the benefits of CRM, the firm’s ability to build
relationships with potential customers and ability to leverage
the established relationship with customers thereby acquiring
new customers and retaining existing customers.
38,47,64
This is
because the firm’s strong market-sensing capability allows it
to better understand and/or accurately forecast changes in
customer needs and requirements, thereby developing long-
term customer relationships
,4182
or amending the frequent
internal focus of CRM implementation and its negative
impact on the revenue outcomes of CRM investments.
80
While evidence in marketing research suggests that a firm’s
market sensing capability could inform its branding
41
and
thereby attract new customers,
80,83
one can further argue
that such firms could improve their brand management,
with the view of attracting new customers with valued
products
8485
while striving to maintain attractive value pro-
positions relative to competing offerings.
38,64
There is also
evidence that top-performing firms use business analytics to
manage brand.
86
Furthermore,
80
suggests that a firm’s market-sensing cap-
ability provides valuable insights to allow the firm to allocate
resources, such as better targeting of the resources deployed
and the firm’s media spending, in serving attractive pro-
spects and existing customers or building the firm’s brands,
which can be seen as seizing market opportunities by trans-
forming its customer relationship and brand management.
The research indicates that in order for a firm to better fit
market needs and to seize emerging marketing opportu-
nities, the firm needs to transform or reshape its marketing
approaches,
44,87,88
such as transforming existing modes of
operation
45
as well as adapting products and services to suit
customer needs
44
; prioritizing target customers,
89
allocating
resources to accommodate customer needs,
90
and translating
strategic key performance indictors into operational metrics
to inform decision-making.
91
Therefore, it is plausible that
a firm’s marketing capabilities developed based on its market
sensing capability as manifested by the use of marketing
analytics can demonstrate the firm’s seizing and transform-
ing capabilities (see.
9
)
Hence, drawing on the dynamic capability view, and the
marketing and analytics literature, the following hypotheses
are put forward:
H2: The use of marketing analytics has a positive effect on
marketing planning capability.
H3: The use of marketing analytics has a positive effect on
marketing implementation capability.
H4: The use of marketing analytics has a positive effect on
brand management capability.
H5: The use of marketing analytics has a positive effect on
customer relationship management.
H6: The use of marketing analytics has a positive effect on
product development management.
4. Research methodology
4.1 Measures
The constructs listed in Table 1 were measured using scales
adapted from items that were validated across a variety of
relevant studies. The use of big data was measured using items
from.
24
The use of marketing analytics was measured using
indicators from.
9
Firm marketing capabilities–including mar-
keting planning, marketing implementation, brand manage-
ment, customer relationship management, and product
development management–were measured using scales
adapted from prior studies.
38,49,64
Additionally, following prior studies [e.g.,
38,92
] firm size,
industry type, as well as respondent job title and tenure, may
have a possible effect on the relationships examined in this
study and were thus included as control variables.
4.2. Sample and data collection
Primary data were collected from Chinese firms to verify the
research model using a survey approach. The questionnaire
was developed using the back-translation process,
93
which
was repeated three times until the originator of the questions
was satisfied that the Chinese version was representative of
the original source. Then, the questionnaire was pilot-tested,
leading to a number of formatting and presentation modifica-
tions. Table 1 shows the questions used in the survey to
measure the research constructs.
The survey was conducted by a Chinese market research
firm for a fee as the firm has a database with more than
2.6 million Chinese firms and a professional reputation for
its survey quality control. A questionnaire was distributed by
e-mail to 11,562 Chinese firms. Within two weeks, 337
responses were received, of which 316 were usable responses.
However, the market research firm’s software for distributing
the survey had no means to know how many survey invita-
tions were actually delivered and opened. As a result, it was
not possible to calculate a meaningful response rate.
As there is no agreed method for conducting surveys with
mass e-mails yet, this study thus considered the number of
responses from the perspective of building an adequate
model.
94
In the structural model, the maximum number of
arrows pointing at a construct is five. In order to detect
a minimum R
2
value of 0.10 in any of the constructs at
a significance level of 1%, the minimum sample size required
4G. CAO ET AL.
is 205.
9596
Since 316 usable responses were received, this
minimum sample size requirement was met.
4.3. Respondents
Table 2 summarizes the company profile in terms of the
industry, number of employees, and the province in which
the firms were based (out of 34 Chinese provincial-level
Table 1. Constructs and indicators of the study.
Constructs Indicators (based on Likert scale from 1- strongly disagree to 7-strongly agree) Mean SD
Use of Big Data
(UBD)
(Higher-order)
(Reflective)
24
Please indicate your agreement or disagreement on the following statements
Volume (lower-order, reflective)
VOL1-My company analyses large amounts of data 5.6 1.04
VOL2-The quantity of data we explore is substantial 5.4 1.25
VOL3-We use a great deal of data 5.7 1.15
VOL4-We scrutinize copious volumes of data 5.6 1.18
Variety (lower-order, reflective)
VAR1-We use several different sources of data to gain insights 5.5 1.13
VAR2-My company analyses many types of data 5.5 1.24
VAR3-We have many databases from which we can run data 5.3 1.40
VAR4-We examine data from a multitude of sources 5.5 1.29
Velocity (lower-order, reflective)
VEL1-We analyze data as soon as we receive it 5.2 1.35
VEL2-The time period between us getting and analyzing data is short 4.9 1.50
VEL3-My company is lightning fast in exploring our data 5.0 1.43
VEL4-My company analyses data speedily 5.1 1.34
Use of Marketing Analytics (UMA)*
(Higher-order)
(Formative)
9
To what extent has your company implemented marketing analytics in each of the following
areas?
Customer-related (CMA) (lower-order, formative)
UMA1-Customer insight 4.8 1.1
UMA2-Customer acquisition 5.2 31.1
UMA3-Customer retention 5.5 31.1
UMA4-Segmentation 5.1 71.27
Product-related (PMA) (lower-order, formative)
UMA5-New product or service development 5.2 1.2
UMA6-Product or service strategy 5.3 01.2
UMA7-Promotion strategy 5.3 11.3
UMA8-Pricing strategy 5.0 21.2
UMA9-Marketing mix 4.6 71.6
UMA10-Branding 5.2 21.26
General marketing-related (GMA) (lower-order, formative)
UMA11-Digital marketing 5.3 1.2
UMA12-Social media 4.9 31.4
UMA13-Multichannel marketing 4.6 61.62
Marketing Planning Capability (MPC)
(Reflective)
49
How does your company perform the following activities relative to your key competitors?
MPC1-Marketing planning skills 5.4 1.0
MPC2-Ability to effectively segment and target market
#
5.3 31.1
MPC3-Marketing management skills and processes 5.5 91.1
MPC4-Thoroughness of marketing planning processes 5.1 31.15
Marketing Implementation Capabilities (MIC)
(reflective)
49
How does your company perform the following activities relative to your key competitors?
MIC1-Allocating marketing resources effectively 5.41 1.0
MIC2-Organizing to deliver marketing programs effectively 5.31 31.1
MIC3-Translating marketing strategies into action 5.45 91.1
MIC4-Executing marketing strategies quickly
#
5.10 31.15
Brand Management Capability (BMC)
(Reflective)
38
How does your company perform the following activities relative to your key competitors?
BMC1-Routinely use customer insight to identify valuable brand positioning
#
5.2 1.1
BMC2-Consistently establish desired brand associations in consumers’ minds 5.5 11.2
BMC3-Maintain a positive brand image relative to competitors 5.7 11.2
BMC4-Achieve high levels of brand awareness in the market on a regular basis 5.3 3.2
BMC5-Systematically leverage customer-based brand equity into preferential channel
positions
#
5.4 31.17
Customer Relationship Management (CRM)
(Reflective)
38
How does your company perform the following activities relative to your key competitors?
CRM1-Routinely establish a “dialogue” with target customers 5.4 1.1
CRM2-Get target customers to try our products/services on a consistent basis 5.5 71.1
CRM3-Focus on meeting customers’ long term needs to ensure repeat business
#
5.8 31.1
CRM4-Systematically maintain loyalty among attractive customers 5.5 31.2
CRM5-Routinely enhance the quality of relationships with attractive customers
#
5.5 01.17
Product development management (PDM)
(Reflective)
64
How does your company perform the following activities relative to your key competitors?
PDM1-We have the ability to develop new products/services 5.2 1.1
PDM2-We are able to commercialize ideas fast 5.1 11.3
PDM3-We have a number of product/service innovations 5.3 11.3
PDM4-We are able to successfully launch new products/services 5.3 11.1
PDM5-We are able to achieve productivity gains from R&D investments
#
5.4 31.30
*-measured based on a seven-point Likert scale ranging from no use, very low use, low use, moderate use, somewhat heavy use, quite heavy use, to very heavy use;
#
– dropped after the measurement evaluation.
Table 2. Company profiles (n = 316).
Industry %
Number of
employees % Province %
Home appliance 5.7 <50 8.5 Guangdong 13%
Building materials 14.6 50–249 42.1 Beijing 11%
Clothing/textile 17.4 250–499 23.7 Shanghai 7%
Machinery/equipment 11.1 500–999 12.4 Hubei 5%
Automobile and accessories 17.4 1000–1999 6.0 Henan 3%
Electronic 19.6 ≥2000 7.3 Sichuan 2%
Other 14.2 Other 59%
JOURNAL OF COMPUTER INFORMATION SYSTEMS 5
administrative units, only the top six provinces with the most
responding firms were listed). Table 3 summarizes the
respondent profile in terms of their organizational positions
and years of experience in the current industry. The reported
positions of the respondents suggest that 85.5% of the respon-
dents were marketing managers while the rest were other
middle and senior managers. Based on their position within
the firm, the respondents were considered to have relevant
knowledge and experience to be able to address the survey
questions.
9798
4.4. Common method and non-respondent bias
Both procedural and statistical remedies were used to control
for common method bias. The procedural remedies were used
to improve scale items through defining them clearly and
keeping the questions simple and specific, labeling every
point on the response scale to reduce item ambiguity,
99
and
using positively and negatively worded measures to control
for acquiescence and disacquiescence biases.
100
The first sta-
tistical approach conducted was to check the correlation
matrix (Table 4) to identify if there were any highly correlated
factors (r >.90) from common method bias.
98
The result
indicated that this study was unlikely to suffer from common
method bias. Finally, the partialling out of general factor
suggested by
101
was conducted and the result indicated that
common method bias was not a threat in the study.
To evaluate the presence of non-respondent bias, a t-test
and the known value for the population approach
102
were
conducted. The results suggested an absence of non-
response bias
102
and significant differences between respon-
dents and non-respondents, respectively.
4.5. Evaluation of the measurement model
As both formative and reflective constructs were used,
a separate set of analyses was used to evaluate the measure-
ment model following the recommendations by.
95
The reflec-
tive measurement model was evaluated by considering
internal consistency (composite reliability), indicator reliabil-
ity, convergent validity and discriminant validity (Table 4);
they were satisfactory. The formative measurement model was
evaluated by assessing multicollinearity, the indicator weights,
significance of the weights, and the indicator loadings.
95
The
evaluation results indicated all were satisfactory.
4.6. Hypothesis testing
In order to test the hypotheses, SmartPLS3 was used, includ-
ing a two-stage approach and a bootstrapping procedure
(5,000 samples), as suggested by.
95
The result is summarized
in Figure 2.
All hypotheses are supported. H1 proposes that use of big
data (UBD) positively relates to use of marketing analytics
(UMA), which is supported as UBD’s effect on UMA is 0.50
(p < .001). H2 assumes that UMA is positively related to
marketing planning capability (MPC), marketing implemen-
tation capability (MIC), brand management capability (BMC),
customer relationship management (CRM), and production
management (PDM), which is confirmed by UMA’s effects of
0.39 (p < .001) on MPC, 0.39 (p < .001) on MIC, 0.36
(p < .001) on BMC, 0.36 (p < .001) on CRM, and 0.4
(p < .001) on PDM, respectively.
The results also indicate that industry type has
a statistically significant effect on all firm marketing capabil-
ities except for marketing planning; job tenure has
a statistically significant effect on product development man-
agement only; and both firm size and job title have no statis-
tically significant effect on the marketing capabilities.
5. Discussion and implications
This study drew on the dynamic capability view to examine
how marketing capabilities can be enhanced through devel-
oping and testing a research framework linking the use of big
data, marketing analytics and firm marketing capabilities.
First, the findings provide valuable theoretical understand-
ing and empirical evidence of how firm marketing capabilities
can be enhanced by the use of big data and marketing analy-
tics. This fills an important gap between the link–and the need
for a tighter connection–between big data, marketing analy-
tics, and marketing capabilities. In fact, the capability-
enhancing mechanisms are rather different from the known
and fragmented approaches to studying marketing capabil-
ities, the use of big data and marketing analytics demonstrated
by prior studies. Integrating and broadening the applicability
of the relationships between big data, marketing analytics, and
firm marketing capabilities in this research demonstrate gen-
eralizability of previous findings from analytics and marketing
studies, and indicates that firms should be able to improve
their firm marketing capabilities through the use of big data
and marketing analytics.
Second, the study’s outcomes suggest that the use of big data
significantly and positively affects the use of marketing analy-
tics. While prior research suggests that an enhanced relation-
ship between two resources in a firm
103
is value enhancing,
2,76
this study’s analysis provides empirical evidence in support of
this view and the idea that both big data and analytics are parts
Table 3. Respondent profiles (n = 316).
Respondent Positions %
Years of Experience (x) in the
industry %
CEO/President/MD/Partner 1.6 x ≤ 5 8.5
Vice President/Director 0.7 5 < x ≤ 10 58.5
Other C-level Executive 11.5 10 < x ≤ 15 23.7
Chief Marketing Officer 15.9 15 < x ≤ 20 7.6
Director/Head of
Marketing
69.6 20 < x ≤ 25 1
Other directors 0.7 x > 25 0.7
Table 4. Descriptive statistics, correlations, and AVE.
Construct Mean S.D. 1 2 3 4 5 6 7
1 BRC 5.50 0.93 0.76
2 CRM 5.47 0.86 0.57** 0.74
3 MIC 5.42 0.93 0.58** 0.62** 0.78
4 MPC 5.33 0.84 0.55** 0.58** 0.62** 0.76
5 PDM 5.22 0.90 0.57** 0.52** 0.53** 0.55** 0.75
6 UBD 5.41 0.76 0.44** 0.44** 0.49** 0.47** 0.46** 0.83
7 UMA 5.17 0.67 0.39** 0.40** 0.43** 0.41** 0.43** 0.50**
#
**p < 0.01,
#
-formative
6G. CAO ET AL.
of a whole ‘big data chain’ [e.g.
53,55,56
] By empirically and
conceptually demonstrating the value of and the need for
using big data to enhance marketing analytics, this study con-
tributes to analytics literature by challenging the way in which
existing analytics studies examine the effects of big data and
analytics separately, thereby directing the attention to how the
use of big data and analytics together could create firm value.
Third, the findings show that the use of marketing
analytics relates to firm marketing capabilities significantly
and positively. This is consistent with the marketing litera-
ture previously discussed in that firm marketing capabilities
are built upon marketing knowledge [e.g.
5,6,38,57
] The posi-
tive relationship between the use of marketing analytics and
firm marketing capabilities demonstrated in this study
implies that the firms in this study can use the marketing
knowledge and insights uncovered from big data and mar-
keting analytics to enhance its firm marketing capabilities,
which are the manifestations of seizing and transforming
capabilities
9
or dynamic marketing capabilities.
8,39
The
results contribute to the marketing literature and practice
by empirically demonstrating how firms could use market-
ing analytics to develop their marketing capabilities, which
has so far remained largely under-researched
[e.g.
9,31,33,40,42,44
]
The findings from this study also have interesting implica-
tions for managers. Firms interested in investing in big data
and marketing analytics should use them together to max-
imize their potential business value. Firms wishing to develop
their marketing capabilities should utilize the knowledge and
insights gained from big data and marketing analytics as
a foundation. While this relationship was not hypothesized
in this study, it was seen to be supported indirectly as the
firms in this study that used marketing analytics saw signifi-
cant improvements in their firm marketing capabilities.
Although it was beyond the remit of this study to examine
the effect of the model on competitive advantage, taken
together, higher levels of firm marketing capabilities would
enhance competitive advantage.
64
6. Limitations and directions for future research
This study has several limitations. First, the study’s outcomes were
based on data collected from a survey. Future research could
complement this study’s findings by utilizing longitudinal and
time-series research designs that will provide additional causal
evidence. Employing a qualitative approach to develop more in-
depth insights and knowledge on how big data and marketing
analytics create firm value is important for future research.
Second, the survey questionnaire was distributed to a single
key informant by a market research firm using mass e-mails,
without providing a meaningful response rate, which raises
concerns regarding non-respondent bias. Although there was
no evidence of non-respondent bias, the risk of bias could still
not be completely absent. Future research should use multiple
informants to enhance confidence in the findings.
Third, the current research results are based on and limited
to Chinese firms. It would be worthwhile to extend and
replicate this work to firms in other countries. Finally, the
present study focuses on developing an understanding of the
ways in which big data and marketing analytics can be used to
develop firm marketing capabilities thereby attaining compe-
titive advantage. However, since the latter was not examined
in this study, future research could explore the impact of the
model on competitive advantage.
Funding
This work was supported by the Ajman University Research Grant
[CRG- 2019-CBA-03].
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10 G. CAO ET AL.
... Again, rather than using a more varied combination of financial and non-financial measurements to assess the impact of MAC on performance, the majority of the empirical research that are currently available on MAC either employed either financial performance metrics or only non-financial performance metrics. In recent research, for instance, studies by Mitrou et al. (2023) and Vitari and Reguseo (2020) measured the impact of MAC on performance using financial performance metrics like sales revenue and profit; in contrast, studies by Cao et al. (2022) and Charterjee et al. (2021) measured the impact of MAC on performance using non-financial performance metrics like marketing planning capability, brand management capability, customer relationship management and competitive APJBA advantage. According to Kumar et al. (2023), using solely financial or non-financial performance indicators prevents a comprehensive evaluation of how MAC affects the performance of businesses, especially SMEs. ...
... MAC is generally defined as the competence to deliver marketing insights through the utilization of data management, technological infrastructure (i.e. artificial intelligence (AI), machine learning and information technology (IT)) and competent employee to convert marketing into a competitive strength (Cao et al., 2022). The adoption of marketing analytics requires business organizations such as SMEs to organize and make use of marketing analytics-based resources in conflation with other strategic resources and competencies. ...
... IT-and AI-enabled MAC provides SMEs with competencies such as information management and analytic expertise. Therefore, MAC is a technologically supported competence that can aid SMEs to analyze huge number of datasets for accurate marketing decision-making (Cao et al., 2022). The application of MAC helps to generate marketing analytics that is needed to develop an appropriate background where SMEs can respond accurately to a dynamic environment (Abrokwah-Larbi and Awuku-Larbi, 2023). ...
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Purpose The aim of this study is to empirically investigate the impact of marketing analytics capability on business performance from the perspective of RBV theory. Design/methodology/approach This study used a survey method to gather information from 225 food processing SMEs registered with the Ghana Enterprise Agency (GEA) in Ghana’s eastern region. A structural equation modeling (SEM) path analysis was used to assess the impact of marketing analytics capability (MAC) on the performance of SMEs. Findings The results of the study show that MAC significantly and positively affect the financial performance (FP), customer performance (CF), internal business process performance (IBPP) and learning and growth performance (LGP) of Ghanaian SMEs. The findings of this study also illustrated the significance of MAC determinants, including marketing analytics skills (MAS), data resource management (DRM) and data processing capabilities (DPC), in achieving SME success in Ghana. Originality/value The research’s conclusions give RBV theory strong credence. The results of this study also provide credence to previous research finding that SMEs should view MAC and its determinants (i.e. DRM, DPC, MAS) as a crucial strategic capability to improve their performance (i.e. FP, CF, IBPP, LGP). With regard to its contribution, this study broadens the body of knowledge on MAC and SME performance, particularly in the context of an emerging economy.
... The pharmaceutical industry, a major contributor to global greenhouse gas emissions due to its R&D and supply chain operations, is under scrutiny for its environmental, social, and governance (ESG) practices. As the industry moves toward a low-carbon economy, integrating ESG principles such as reducing emissions, developing sustainable medicines, and promoting inclusivity become crucial Cao et al., 2021;Ciampi et al., 2021). ...
... BDA's capacity to process large, complex datasets is revolutionizing healthcare by identifying patient trends, enabling personalized treatments, and optimizing processes. In drug discovery and development, BDA enhances the analysis of extensive datasets, predicts drug interactions, and expedites clinical trials, thus improving medication safety and efficacy Cao et al., 2021). ...
... Moreover, BDA significantly contributes to managing extensive drug data, facilitating innovation and adaptability in the industry. Research by Wang et al. (2018a, b), Akter et al. (2020), and Cao et al. (2021) shows how BDA assists in precise pharmaceuticals and enhances operational efficiency and profitability. ...
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Achieving the United Nations’ Sustainable Development Goals (SDGs) requires environmental, social, and governance (ESG) programs in the pharmaceutical industry. Using the Millennium Development Goals, the 2030 agenda aims to transform European Union companies toward sustainability. In pharmaceuticals, in particular, ESG programs come with complexities such as employee skills, corporate goals, and management expectations. Managing these programs effectively requires advanced technologies such as big data analytics (BDA) and dynamic capabilities (DC). In this study, DC theory is used to develop an architecture for managing ESG criteria, focusing on provenance, traceability, and availability. BDA’s role in ESG programs is explored, along with its use cases and benefits, and how DC drives success in ESG implementation. The study examined five pharmaceutical companies in Germany, Portugal, and Switzerland, all consulting the same firm for BDA systems, to identify the characteristics of effective BDA implementation. The research explores how BDA and DC jointly enhance ESG efforts, the essential skills needed, and how DC aids in real-time decision-making in BDA projects aligned with ESG standards. It highlights the BDA system’s accuracy and effectiveness in managing ESG programs, with DC as a pivotal facilitator. Findings reveal BDA’s value in operational efficiency and aligning business models with ESG goals, underscoring the need for diverse skills in BDA implementation and DC’s importance in integrating various managerial capacities into effective strategies. The study promotes a dynamic, data-driven approach in the pharmaceutical industry for managing complex ESG initiatives. It stresses continuous learning, adaptation, and integrating technological advances with ethical business practices. The research concludes by emphasizing BDA and DC’s vital roles in advocating ethical, socially responsible, and environmentally sustainable practices in the pharmaceutical sector, marrying technology with ethical business strategies.
... It is shared on social media for social interaction and to cultivate a personal image (Hall 2018). Moreover, it is routinely shared with companies for marketing and product development, sometimes in exchange for services (Cao et al. 2022). Thus, the datafication of our lives pulls us into a complex network of interactions. ...
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Digital technologies have become an essential part of our everyday lives. While they were still a curious novelty in the 1960s and 1970s, they seem to permeate an ever- increasing part of today’s societies (Levin & Mamlok 2021). By now, they are no longer confined to offices, where people need to physically sit in front of computers to use them. Instead, they are ubiquitous, with handheld devices being portable, and wearable technologies frequently even unobtrusive (Delabrida Silva et al. 2018). Augmented Realities blur the lines between technology and reality, while Virtual Realities even place a technological layer over our realities (Arena et al. 2022). Our technologically embedded lives create a myriad of data, which is used for various kinds of communication and as a currency. It is shared on social media for social interaction and to cultivate a personal image (Hall 2018). Moreover, it is routinely shared with companies for marketing and product development, sometimes in exchange for services (Cao et al. 2022). Thus, the datafication of our lives pulls us into a complex network of interactions (...)
... The literature has examined some of the challenges in the adoption of MA (Cao et al., 2022). There are substantial challenges deriving from the combined impact of regulatory processes and market and non-market incentives throughout the process of developing new capabilities (Rahman et al., 2021). ...
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This study aimed to examine the complex forces that influence the adoption of marketing analytics in the ready-made garments (RMG) industry in an emerging country context. The forces for change and those that impede the adoption of marketing analytics in the industry were explored. We used Lewis's Force Field Analysis framework to inform the research. Semi-structured interviews with managers , technology experts, and government officials were conducted using face-to-face and virtual meetings. The results reveal that RMG buyers' demand, competitors, lack of employee performance, and climate change issues are central forces pushing for implementing marketing analytics in the industry. However, the lack of knowledge, interest, and technology-skilled people, high cost, employee resistance, privacy issues, high employee turnover, and government policies are significant impediments to marketing analytics adoption in the RMG industry. The theoretical, organisa-tional, policy, and professional implications are then discussed. Theoretically, this study contributes by creating a conceptual framework using Lewin's Force Field Analysis. In practical terms, this study suggests that marketing analytics in the Industry 4.0 era offers significant opportunities for businesses and policymakers to increase their flexibility, competitiveness and responsiveness.
... Studies suggest that the use of BD significantly and positively affects marketing analytics (Cao et al. 2022). Consistently with the resource-based view (RBV), this study treats BD as a vital resource for firms (Ji-fan Ren et al. 2017;Raguseo 2018). ...
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Against the backdrop of the resource-based and dynamic capabilities view, this paper examines the impact of technology and information quality on marketing agility and the effect of the decision-making role on technology and information quality in the context of big data marketing analytics. Data were acquired from 236 marketing professionals in the U.S. and Canada working in companies with at least limited experience in big data deployment and analyzed with PLS-SEM. The findings indicate that both the information and technology quality are related to the marketing agility of the firms. Moreover, the result also shows a positive and significant association between decision-making role and information quality. This research provides an understanding of the impact of the quality of BDMA on marketing agility as it relates to the quality of information and a firm's technology, as well as the positive relationship of the decision-making on the aforementioned relationships.
... However, a company's level of customer relationship management adoption may affect the efficacy of its marketing skills (Monod et al., 2022). Several research (Cao et al., 2022;Saygili et al., 2022) have examined the impact of CRM as a moderator between marketing capabilities and financial performance. Research in this area looks at the relationship between a company's level of customer relationship management and its financial performance, and how the latter can be improved through the use of the former. ...
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This research study addresses the complex interaction in between advertising and marketing capabilities, financial performance, and the moderating impact of consumer relationship management (CRM) in Jordanian small and medium enterprises (SMEs) in the service field. Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis was used for this study. The study clearly verifies a significant and favorable relationship in between advertising alignment and financial performance, highlighting the tactical value of customer-centric approaches. It likewise highlights the prominent function of value development in driving monetary success and the positive effect of operational capabilities on financial efficiency. Furthermore, the research study discovers the reliable moderation of CRM in the connections amongst marketing alignment, value development, operational capacities, and financial performance. These searchings for highlight the central role of CRM in improving the effect of marketing abilities on financial end results and offer useful understandings for Jordanian SMEs in the solution sector looking for to optimize financial performance and boost client connections.
... Some scholars identified three types of marketing analytics-descriptive, predictive, and prescriptive, as a subdivision of big data analytics or business analytics, which helps to make marketing decisions efficient (Sivarajah et al. 2017a, b;Morgan et al. 2009). Cao et al. (2021) demonstrate that big data positively impacts the use of marketing analytics and enhances the functionality of product development, marketing planning and implementation, and brand management. Andonians (2023) shows that hybrid intelligence (a collaboration of humans and AI-Huang and Rust 2022) helps marketing by improving analytics and campaign management (Petrescu and Krishen 2023). ...
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The exponential growth of data-driven decision-making in modern business stimulates the gravity of market intelligence (MI) in both industry and academia. Consequently, the field of MI has been significantly influenced by a substantial body of literature over the past few decades. The study makes a scholarly contribution by carefully analyzing the previous literature and plotting relevant research constituents. Employing a bibliometric lens to 293 articles, we found a notable increase in the number of publications over last few decades. The United Kingdom, followed by the United States, received the most attention as a region in the MI literature; however, the most prolific institution is located in Sweden. Besides, a detailed keyword analysis takes the study to the next level, identifying six key research themes, including ‘strategic decision intelligence,’ ‘marketing and sales,’ ‘entrepreneurial dynamics and emerging markets,’ ‘strategic navigations in dynamic environments,’ ‘holistic product development, research and innovation,’ and ‘information systems and knowledge management,’ and 13 future research questions. The study lends a hand to researchers providing a statistical and visual summary of MI’s scholarly status, future research direction, and marketing analytics practitioners by offering insights on implementing MI in a holistic and efficient marketing decision-support system.
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Purpose Previous studies focus on the direct effects of marketing analytics on entrepreneurial performance, but few explore the underlying mechanisms. Drawing on affordance theory, this study explores pathways through new product innovation (NPI) for the effects of marketing analytics on business performance. NPI is a market-based innovation concept comprising customer- and competitor-driven NPD and incremental innovation. Design/methodology/approach Using survey data collected from UK-based entrepreneurial firms operating in the IT and telecoms industries, we apply confirmatory factor analysis and a sequential structural equation model to test the mediating role of NPI in the effect of marketing analytics on market performance and financial performance. Findings The results show that marketing analytics enhances business performance through competitor-driven but not customer-driven NPD. Although using marketing analytics to generate customer knowledge for existing product innovation may enhance market performance, this positive effect becomes negative when competitor-driven NPD is undertaken to improve existing product innovation. Originality/value This study makes significant contributions to the innovation and NPD literature. It delves deeper into the existing view on the positive contributions of customer engagement to business value creation, revealing the significance of competitor knowledge to enhance business performance through marketing analytics, particularly in the context of IT and telecoms entrepreneurial firms.
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The burgeoning field of big data analytics has revolutionized the landscape of marketing, offering unprecedented opportunities for personalized marketing campaigns. This review aims to synthesize the current state of knowledge on leveraging big data for personalized marketing, elucidating the objectives, methodologies, key findings, and conclusions drawn from recent research in this domain. The primary objective of this review is to explore how big data analytics can be effectively utilized to tailor marketing strategies to individual consumer preferences, behaviors, and patterns. Methodologically, the review adopts a comprehensive approach, examining a wide range of studies that employ various big data tools and techniques, including machine learning algorithms, data mining, and predictive analytics, in the context of personalized marketing. Key findings indicate that big data analytics significantly enhances the ability of marketers to understand and predict consumer behavior, leading to more effective targeting and segmentation strategies. The integration of big data has shown to improve customer engagement, satisfaction, and loyalty by delivering more relevant and timely marketing messages. However, challenges such as data privacy concerns, the need for advanced analytical skills, and the potential for data inaccuracies are also highlighted. In conclusion, while big data presents substantial opportunities for personalizing marketing campaigns, its effective implementation requires careful consideration of ethical implications, investment in technological infrastructure, and ongoing skill development. Future research directions include exploring the impact of emerging technologies like artificial intelligence and the Internet of Things (IoT) on personalized marketing, and developing frameworks for ethical data usage in marketing practices. This review underscores the transformative potential of big data in reshaping personalized marketing strategies, offering valuable insights for both practitioners and researchers in the field. Keywords: Big Data, Marketing Strategies, Consumer Behavior, Data Analytics, Personalized Marketing, Market Segmentation, Privacy Concerns, Ethical Challenges, Digital Transformation, Artificial Intelligence (AI).
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Big data technologies and analytics enable new digital services and are often associated with superior performance. However, firms investing in big data often fail to attain those advantages. To answer the questions of how and when big data pay off, marketing scholars need new theoretical approaches and empirical tools that account for the digitized world. Building on affordance theory, the authors develop a novel, conceptually rigorous, and practice-oriented framework of the impact of big data investments on service innovation and performance. Affordances represent action possibilities, namely what individuals or organizations with certain goals and capabilities can do with a technology. The authors conceptualize and operationalize three important big data marketing affordances: customer behavior pattern spotting, real-time market responsiveness, and data-driven market ambidexterity. The empirical analysis establishes construct validity and offers a preliminary nomological test of direct, indirect, and conditional effects of big data marketing affordances on perceived big data performance.
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The collection of big data from different sources such as the internet of things, social media and search engines has created significant opportunities for business-to-business (B2B) industrial marketing organizations to take an analytical view in developing programmatic marketing approaches for online display advertising. Cleansing, processing and analyzing of such large datasets create challenges for marketing organizations — particularly for real-time decision making and comparative implications. Importantly, there is limited research for such interplays. By utilizing a problematization approach, this paper contributes through the exploration of links between big data, programmatic marketing and real-time processing and relevant decision making for B2B industrial marketing organizations that depend on big data-driven marketing or big data-savvy managers. This exploration subsequently encompasses appropriate big data sources and effective batch and real-time processing linked with structured and unstructured datasets that influence relative processing techniques. Consequently, along with directions for future research, the paper develops interdisciplinary dialogues that overlay computer-engineering frameworks such as Apache Storm and Hadoop within B2B marketing viewpoints and their implications for contemporary marketing practices.
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A central question for information systems (IS) researchers and practitioners is if, and how, big data can help attain a competitive advantage. To address this question, this study draws on the resource-based view, dynamic capabilities view, and on recent literature on big data analytics, and examines the indirect relationship between a firm’s big data analytics capability (BDAC) and competitive performance. The study extends existing research by proposing that BDACs enable firms to generate insight that can help strengthen their dynamic capabilities, which, in turn, positively impact marketing and technological capabilities. To test our proposed research model, we used survey data from 202 chief information officers and IT managers working in Norwegian firms. By means of partial least squares structural equation modeling, results show that a strong BDAC can help firms build a competitive advantage. This effect is not direct but fully mediated by dynamic capabilities, which exerts a positive and significant effect on two types of operational capabilities: marketing and technological capabilities. The findings suggest that IS researchers should look beyond direct effects of big data investments and shift their attention on how a BDAC can be leveraged to enable and support organizational capabilities.
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