The effect of data strategy on competitive advantage

Abstract

Purpose

In the age of analytical competition, business models and gaining competitive advantage (CA) are directly related to organizations’ data strategy. Incorporating data strategy enables the organization to unlock the potential value of big data analytics. Therefore, this study aims to analyze how data strategy affects the achievement of CA.

Design/methodology/approach

Through survey research, data were collected from 103 respondents. Model testing and evaluation, partial least squares structural equation modeling and analysis of mediating effects were performed.

Findings

The supported hypotheses confirm the direct effects between the defensive and offensive positioning of the data strategy on CA, as well as the mediating effect of the offensive data strategy (ODS).

Originality/value

This study is groundbreaking in terms of empirically analyzing how defensive data strategy (DDS) or ODS affects CA. In conclusion, to extract value from their data, organizations need to establish their data strategy based on their strategic positioning, the potential of their resources and their analytical capabilities.

Research implications

The defensive and offensive positioning of the data strategy are closely related to each other and both, in isolation, directly and positively, impact CA. It is also noted that the role of defensive positioning is to strengthen the offensive positioning of the data strategy, which in turn, plays a central role in achieving CA.

Practical implications

The results can assist managers in effectively incorporating analytical resources and capabilities, as well as helping them understand the dynamics and advantages of data strategy, so they can drive strategic objectives according to the organization’s positioning.

Originality/value

This study is groundbreaking in terms of empirically analyzing how DDS or ODS affects CA. In conclusion, to extract value from their data, organizations need to establish their data strategy based on their strategic positioning, the potential of their resources and their analytical capabilities.

Citation

Medeiros, M.M.d., Maçada, A.C.G. and Freitas Junior, J.C.d.S. (2020), "The effect of data strategy on competitive advantage", The Bottom Line, Vol. 33 No. 2, pp. 201-216. https://doi.org/10.1108/BL-12-2019-0131