Big Data Analytics and Firm Performance: An Empirical Investigation of Direct and Mediating Effects

Abstract

The development of cloud computing, the internet of things and social media has increased the volume of data, which cannot be stored or analyzed by traditional data analytics techniques. Therefore, big data analytics has become an essential tool for dealing with big data. This study examined the relationship between big data analytics and both market and financial performance, with the mediating effect of strategic decision quality. Based on 150 observations of Egyptian banks that use BDA and those that do not use BDA. The results showed that strategic decision quality, financial, and market performance had been improved because of the adoption of BDA. In addition, the financial and market performance were higher after the adoption of BDA than before the adoption of BDA. They were also higher for the banks that use BDA than those that do not use BDA. Finally, the results indicated that strategic decision quality has a mediating effect on the relationship between BDA and firm performance.