Big data analytics capability for competitive advantage and firm performance in Malaysian manufacturing firms
International Journal of Productivity and Performance Management
ISSN: 1741-0401
Article publication date: 20 December 2023
Abstract
Purpose
This study investigated the relationships among big data analytics capability (BDAC), low-cost advantage, differentiation advantage, market and operational performance underpinning the resource-based view (RBV) and the entanglement view of sociomaterialism (EVS) theories.
Design/methodology/approach
A total of 191 responses from members of the Federation of Malaysian Manufacturers were analysed using a structural equation modelling approach.
Findings
This study has conclusively demonstrated that BDAC is indeed a resource bundle comprising human skills, tangible and intangible resources. This study found that BDAC positively influences competitive advantage and firm performance. The differentiation advantage was found to be a key factor in explaining market performance. Theoretically, both RBV and EVS could be used to link BDAC, differentiation advantage and market performance to explain superior firm performance.
Research limitations/implications
First, the sample is restricted to the manufacturers in Malaysia. Second, a single independent variable, BDAC, is used as a higher-order capability to influence competitive advantage, and thus, superior firm performance. Third, this study uses a self-reported survey, which means that only one respondent from each firm answered the questions. Fourth, this study excludes the focused strategy as it aims to investigate the competitive strategy used in the broader industry environment, rather than in a specific segment pursuing a focused strategy.
Practical implications
First, BDAC is a valuable, rare, inimitable and non-substitutable tool for manufacturers to enhance their firm performance. Second, BDAC is crucial for manufacturing firms to reduce costs and differentiate themselves. Third, a low-cost advantage may not help manufacturers achieve greater market and operational performance.
Originality/value
The relationship among BDAC, low-cost advantage, differentiation advantage, market and operational performance within manufacturing industry is empirically tested.
Keywords
Acknowledgements
This research is supported by grants from the Ministry of Higher Education of Malaysia FRGS project number R.K130000.7855.5F416 and Tunku Abdul Rahman University of Management and Technology (TARUMT) via an internal research grant UC/I/G2020-00066.
Since submission of this article, the following author has updated their affiliations: T. Ramayah is at the Department of Information Technology and Management, Daffodil International University (DIU), Dhaka, Bangladesh; Department of Management, Sunway Business School (SBS), Malaysia; Faculty of Economics and Business, Universitas Indonesia (UI), Jakarta, Indonesia; University Center for Research and Development (UCRD), Chandigarh University (CU), Chandigarh, India; Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu (UMT), Kuala Terengganu, Malaysia; Azman Hashim International Business School, Universiti Teknologi Malaysia (UTM), Kuala Lumpur, Malaysia.
Citation
Chong, C.-L., Abdul Rasid, S.Z., Khalid, H. and Ramayah, T. (2023), "Big data analytics capability for competitive advantage and firm performance in Malaysian manufacturing firms", International Journal of Productivity and Performance Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJPPM-11-2022-0567
Publisher
:Emerald Publishing Limited
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