Mediating Effect of Data-Driven Culture on the Relationship between Big Data Analytics and Firm Performance

Abstract

The study explores the effect of the Big Data Analytics Capability (BDAC) on the performance of the firms in the restaurant industry of Southern Punjab, Pakistan and explores the mediating factor of Data-Driven Culture (DDC). The empirical basis of the analysis was collected by use of structured survey where 390 responses were collected out of 550 distributed questionnaires. The analysis of data was performed with the PLS-SEM of SmartPLS 3.0 on the basis of reliable and validity procedures. Findings indicate that BDAC does not affect performance of firms in this case in a significant manner but the indirect effect of BDAC on performance through DDC has been found to have a significant and positive correlation implying full mediation. These results imply that, despite the fact that investments related to technology only do not convert into performance improvements, provided that organizations do not develop a culture that embraces the use of data in the process of making decisions. The research also builds towards the Resource-Based View in that BDAC only creates value when it is supported by the intangible cultural resources. In practice, the results indicate that SMEs operating in underdeveloped countries should first build internal data cultures before anticipating any viable returns of analytics technologies.

        Keywords:  Big Data Analytics Capability; Data-Driven Culture; Firm Performance; Restaurant Sector; PLS-SEM