Organizational performance and capabilities to analyze big data: do the ambidexterity and business value of big data analytics matter?

Abstract

PurposeThe aim of the study is to examine the impact of the big data analytics capabilities (BDAC) on the organizational performance. The study also examines the mediating role of ambidexterity and the moderating role of business value of big data (BVBD) analytics in the relationship between the big data analytics capabilities and the organizational performance.Design/methodology/approachThis study collected primary data based on a questionnaire survey among the large manufacturing firms operating in UAE. A total of 650 questionnaires were distributed among the manufacturing firms and 295 samples were used for final data analysis. The survey was conducted from September to November in 2019, and data were analyzed based on partial least squares structural equation modeling (PLS-SEM).FindingsThe big data analysis (BDA) scalability is supported by the findings on the performance of firm and its determinants such as system, value of business and quality of information. The roles of business value as a moderator and ambidexterity as mediator are found significant. The results reveal that there is a need for managers to consider the business value and quality dynamics as crucial strategic objectives to achieve high performance of the firm.Research limitations/implicationsThe study has significant policy implication for practitioners and researchers for understanding the issues related to big data analytics.Originality/valueThis is an original study based on primary data from UAE manufacturing firms.

Effect of business intelligence on operational performance: the mediating role of supply chain ambidexterity

“…Hence, we expect not just a direct impact of SCA on OP but also an indirect effect of SCA in the BI-OP relationship. This finds support from prior studies (Aljumah et al, 2021;Pertheban and Arokiasamy, 2019;Chams-Anturi et al, 2019;Belhadi et al, 2021;Zhao et al, 2021;Al-khawaldah et al, 2022), which indicated that organizational ambidexterity plays an indirect role in improving the performance of firms. This study based on the contradictory views expressed re-examines the relationship by posing the third and fourth hypotheses.…”

“…Prior studies (Aljumah et al, 2021;Alamsjah and Asrol, 2022;Belhadi et al, 2021) have argued that managers often face trade-offs between flexibility and efficiency, where giving preference to one over the other is detrimental. Contrarily, others believe that firms can pursue both strategies, flexibility and efficiency, by developing an ambidexterity capability (Ojha et al, 2018;Aslam et al, 2018;Zhao et al, 2021).…”

“…The choice of SCA as a mediator is justified by its ability to combine both performance and capacity to withstand competition which is desired by small businesses. Additionally, this study is also motivated by the call for more studies on how BI will foster enhanced operations of SMEs (Aljumah et al ., 2021). There have been only a handful of studies to date that have used DCT theory to examine the impact of BI on small and medium-sized businesses (SMEs) in emerging economies (Alsaad et al ., 2022; Maleki and Sabet, 2022).…”

Business Analytics and Firm Performance: A Literature Review

“…Several of the reviewed articles develop and empirically test research models that combine business analytics capability with different valuable, rare, and difficult to imitate resources and capabilities, which have theoretically significant roles in translating business analytics into improved firm performance. For instance, recent research highlights the complementary roles of dynamic capabilities (e.g., Wamba et al, 2017;Mikalef et al, 2020), business strategy alignment (Akter et al, 2016;Wamba et al, 2019), organizational culture (Behl, 2020;Upadhyay and Kumar, 2020), information technology capital, educated workers, high flow-efficiency production workplaces (Brynjolfsson et al, 2021), knowledge management (Ferraris et al, 2019, Shabbir andGardezi, 2020), ambidexterity (Božič and Dimovski, 2019;Rialti et al, 2019;Aljumah et al, 2021), big data analytics management capabilities (Razaghi and Shokouhyar, 2021), and resource orchestration and circular economy implementation (Kristoffersen et al, 2021). In addition, business analytics positively influences firm performance through mediating outputs, such as informational benefits (Asadi Someh and Shanks, 2015), information quality (Ashrafi et al, 2019), technological innovation (Saleem et al, 2019), product and process innovation (Saleem et al, 2020), dual innovations (Su et al, 2020), sustainable product development (Ali et al, 2020), business process performance (Aydiner et al, 2019), business decision making (Chatterjee et al, 2021), and functional performance (Torres et al, 2018).…”

Examining the relationship between big data analytics capabilities and organizational ambidexterity in the Malaysian banking sector

“…To sustain competitive advantages, they must be agile and flexible enough to reconfigure their resources and skills in rapidly evolving conditions (Teece et al, 1997). DCV, as one of the most significant views in strategic management, provides organizations with perspectives to facilitate comprehending how dynamic capabilities could improve organizational resilience in adverse circumstances (Aljumah et al, 2021). Therefore, DCV is adopted as the grounded theory of the research, which justifies the necessity and appropriateness in linking BDAC and ambidexterity in the banking sector.…”