Examining the Effects of Big Data Analytics Capabilities on Firm Performance in the Malaysian Banking Sector

Abstract

Banks’ primary goal is to gain profit for survival and to thrive. Therefore, they have to take various measures, such as data analysis, to maintain their sustainable competitiveness. Along with the rapid development of information technology, big data analytics capabilities (BDAC) is considered essential for banks in the highly dynamic market. To gain an in-depth understanding of the economic importance of BDAC in the banking sector in Malaysia, this research examines the relationship between BDAC and firm performance (i.e., market performance and operational performance) based on the resource-based view (RBV) and the contingent resource-based view (CRBV). The partial least squares structural equation modelling (PLS-SEM) was adopted to analyse the collected data from 162 bank managers in Malaysia. The findings verify that BDAC is composed of seven tangible/intangible resources and human skills, and it significantly influences firm performance in the banking sector.

What factors affect firm performance in the hotel industry post-Covid-19 pandemic? Examining the impacts of big data analytics capability, organizational agility and innovation

“…The main characteristic of big data can be summarized in "5Vs", including volume, variety, velocity, veracity, and value ( Wamba et al, 2017 ). However, big data itself barely has crucial business values without suitable analytical tools ( Aziz et al, 2023 ). Thus, it is necessary for an organization to perform big data analytics (BDA).…”

“…Also, prior research measures firm performance by two separate constructs, namely market performance and operational performance ( Gupta and George, 2016 , Gupta et al, 2018 ). Based on the literature, market performance measures a commercial organization's actual outcomes (e.g., market share and new markets), and operational performance refers to an organization's productivity (e.g., profits and return on investment) ( Aziz et al, 2023 , Liu et al, 2020 ).…”

Digital Customer Experiences: A Multiple Case Study Approach of Malaysia Financial Institutions

“…They found that it has a positive impact on customer satisfaction. Similarly, Aziz and Long (2023) mentioned that banks are more likely to grow their profitability by targeting the right consumers, improving customer experience, maintaining solid customer relationships, and lowering customer acquisition/retention costs.…”

“…In addition, there needs to be more research in Malaysia's context discussing the impact of digital transformation on customer experience. Malaysia's banking sector is regarded as stable, yet it is still expanding and dealing with rapidly changing market challenges (Aziz & Long, 2023). To remain competitive, banks try to provide clients with innovative products/services (e.g., mobile payment and facial recognition) and implement organizational changes that improve value Digital Customer Experiences: A Multiple Case Study Approach of Malaysia Financial Institutions creation and customer experience optimization (Cegarra-Navarro et al, 2019).…”

Fintech Agents: Technologies and Theories

“…For example, Q.ai, a robo-advisory app, uses AI and big data to provide customized portfolio recommendations and maximize returns on investments [33]. Banks also use big data analytics to study consumption patterns and customer behavior [34,35]. Similarly, health insurance companies use data from wearable technologies to provide superior customer service and product innovations [36], and some insurance companies track driving data to reward safe driving [37].…”