Governance, Strategy, and Value of IS

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Paper Number

1218

Paper Type

Completed

Description

To uncover the key mechanisms of how value is created through big data analytics (BDA), our main research objective is to integrate prior empirical findings on the relationship between BDA capabilities and firm performance. We conducted meta-analytic structural equation modeling based on 271 correlations and 33,281 observations collected from 63 individual studies. The findings confirm that creating business value from BDA is a complex and dynamic process affected by various value creation mechanisms. Aside from direct relationships between BDA capabilities and firm performance, we highlight the mediating role of operational performance in the value transmission to market and financial performance. Our study contributes to the rising debate on the business value of BDA by providing an integrated and novel picture of the value-adding pathways emanating from BDA capabilities. This informs future information systems research on theory building and assists practitioners in effectively formulating their objectives of BDA initiatives.

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Dec 12th, 12:00 AM

Understanding the Operational Value of Big Data Analytics Capabilities for Firm Performance: A Meta-Analytic Structural Equation Modeling Approach

To uncover the key mechanisms of how value is created through big data analytics (BDA), our main research objective is to integrate prior empirical findings on the relationship between BDA capabilities and firm performance. We conducted meta-analytic structural equation modeling based on 271 correlations and 33,281 observations collected from 63 individual studies. The findings confirm that creating business value from BDA is a complex and dynamic process affected by various value creation mechanisms. Aside from direct relationships between BDA capabilities and firm performance, we highlight the mediating role of operational performance in the value transmission to market and financial performance. Our study contributes to the rising debate on the business value of BDA by providing an integrated and novel picture of the value-adding pathways emanating from BDA capabilities. This informs future information systems research on theory building and assists practitioners in effectively formulating their objectives of BDA initiatives.

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