Big data analytics capability for competitive advantage and firm performance in Malaysian manufacturing firms

Chu-Le Chong, Siti Zaleha Abdul Rasid, Haliyana Khalid and T. Ramayah

International Journal of Productivity and Performance Management, 2023, vol. 73, issue 7, 2305-2328

Abstract: Purpose - This study investigated the relationships among big data analytics capability (BDAC), low-cost advantage, differentiation advantage, market and operational performance underpinning the resource-based view (RBV) and the entanglement view of sociomaterialism (EVS) theories. Design/methodology/approach - A total of 191 responses from members of the Federation of Malaysian Manufacturers were analysed using a structural equation modelling approach. Findings - This study has conclusively demonstrated that BDAC is indeed a resource bundle comprising human skills, tangible and intangible resources. This study found that BDAC positively influences competitive advantage and firm performance. The differentiation advantage was found to be a key factor in explaining market performance. Theoretically, both RBV and EVS could be used to link BDAC, differentiation advantage and market performance to explain superior firm performance. Research limitations/implications - First, the sample is restricted to the manufacturers in Malaysia. Second, a single independent variable, BDAC, is used as a higher-order capability to influence competitive advantage, and thus, superior firm performance. Third, this study uses a self-reported survey, which means that only one respondent from each firm answered the questions. Fourth, this study excludes the focused strategy as it aims to investigate the competitive strategy used in the broader industry environment, rather than in a specific segment pursuing a focused strategy. Practical implications - First, BDAC is a valuable, rare, inimitable and non-substitutable tool for manufacturers to enhance their firm performance. Second, BDAC is crucial for manufacturing firms to reduce costs and differentiate themselves. Third, a low-cost advantage may not help manufacturers achieve greater market and operational performance. Originality/value - The relationship among BDAC, low-cost advantage, differentiation advantage, market and operational performance within manufacturing industry is empirically tested.

Keywords: Competitive advantage; Information technology domain; Big data analytics capability; Firm performance; Resource-based view; Entanglement view of sociomaterialism (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:ijppm-11-2022-0567

DOI: 10.1108/IJPPM-11-2022-0567

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