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Exploring The Relationship Between Big Data And Firm Performance

Author

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  • Fernando ALMEIDA

    (ISPGAYA, University of Porto & INESC TEC, Porto, Portugal)

  • Samantha LOW-CHOY

    (Arts, Education and Law Group, Griffith University, Queensland, Australia, Environmental Futures Research Institute, Griffith University, Queensland, Australia)

Abstract

Big data offers great potential to improve organizational performance and generate competitive advantages. In this sense, knowing this phenomenon is relevant and this study aims to explore the role of big data on firm performance through a process of synthesis of several studies that have been published in recent years in different organizational contexts. This study adopts a mixed-methods approach. Initially, a systematic literature review is performed to characterize the studies that adopt structural equation modeling to determine the relationship between big data and firm performance. Additionally, a meta-analysis method is used to quantify the association between these two phenomena. The findings reveal a moderate positive relationship between the adoption of big data in the firm performance. This ratio is estimated at 0.38 with a confidence interval between 0.32 and 0.44 for a significance level of 0.05. The results of this study also allow us to conclude that the performance of organizations is also determined by other factors such as human capital, the data-driven organizational culture, or the learning capacity of the organization. This study offers mainly implications for companies that intend to invest in big data to know the potential value of this technology in organizational performance.

Suggested Citation

  • Fernando ALMEIDA & Samantha LOW-CHOY, 2021. "Exploring The Relationship Between Big Data And Firm Performance," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 13(3), pages 43-57, September.
    • Handle: RePEc:rom:mrpase:v:13:y:2021:i:3:p:43-57
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    References listed on IDEAS

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    Cited by:

    1. Claudiu CICEA & Corina MARINESCU & Nicolae PINTILIE, 2021. "Organizational Culture In Different Environments: Evidence From Japan," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 256-273, November.

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