The strategic impact of big data analytics and big data management on innovation, competitive advantage, and financial performance

Abstract

This study aims to examine how big data analytics (BDA) capabilities – specifically the effective use of BDA tools and big data management (BDM) – affect the innovation process, competitive advantage and financial performance. Drawing on the resource-based view, the study tests a conceptual model linking effective use of BDA tools and BDM to the innovation process, competitive advantage and financial performance. Quantitative data were collected through an online survey of managers from firms in the UK and the USA and the proposed relationships were analyzed using structural equation modeling. The findings show that both the effective use of BDA tools and BDM have significant positive effects on the innovation process, competitive advantage and financial performance. The results also indicate that the innovation process positively influences competitive advantage and financial performance, while competitive advantage positively affects financial performance. This study extends prior research by providing an integrated framework that explains how BDA capabilities create organizational value through innovation and competitive advantage. In particular, it highlights the complementary roles of BDA tools and BDM in improving firms’ strategic and financial outcomes.