Improving Organizational Performance Through the Use of Big Data

ABSTRACT The number of firms that plan to invest in big data usage has been reduced as many of them are still trying to understand the necessary conditions needed to improve their performance through the processing and use of big data. In this study, we leverage the resource-based view to investigate the role of tools sophistication, big data utilization, and employee analytical skills in improving organizational performance. The research model is validated empirically from 140 senior IT professionals using survey data. The findings show that when firms process big data, organizational performance is at its highest when firms use sophisticated tools, while this is not the case when firms do not process big data. Furthermore, findings show that, interestingly, at the lower levels of employee analytical skills, there is no significant impact of big data utilization on organizational performance, suggesting important implications for theory and for the guidance of business action.