Big data analytics and market performance: the roles of customization and personalization strategies and competitive intensity

Abstract

PurposeBig data analytics (BDA) plays a crucial role in understanding customer behavior through Customer Relationship Management (CRM), especially in a rapidly changing business environment. This paper investigates the direct effect of BDA use on market performance, besides the mediating effect through Big Data-enabled CRM strategies adoption (e.g. customization and personalization). The paper also examines the moderating role of competitive intensity in these effects.Design/methodology/approachDrawing from a knowledge-based view (KBV) and Organizational Information Processing Theory (OIPT), the authors formulated the research model. Subsequently, the measurement model and hypotheses were tested through PLS-SEM on online survey data of 229 managers from 167 companies out of Egypt's top 500.FindingsThe results indicated that BDA use does not directly affect the market performance, but this effect was significant through customization and personalization strategies adoption. The results also revealed a positive association between BDA use and the adoption of these strategies. Furthermore, competitive intensity only moderates the relationship between BDA use and personalization strategy adoption.Research limitations/implicationsCompanies can use BDA to improve customer knowledge and experience through customization and personalization, leading to better market performance and moving towards becoming a Big Data-driven organization. This study is limited to companies in the Egyptian context, which restricts the generalizability of the results.Originality/valueThis study conceptually and empirically explores how BDA usage, customization and personalization strategies impact market performance under competitive intensity situations, especially in the context of emerging markets.