Big Data Analytics Capability, Dynamic Capability, and Firm Performance: The Moderating Effect of IT–Business Strategic Alignment

As Big Data applications become popular, firms harness their Big Data analytics capabilities for environmental insights. Literature suggests a positive correlation between these capabilities and firm performance, with dynamic capability potentially mediating this relationship. However, the mechanism by which Big Data analytics capabilities transform into dynamic capabilities remains underexplored. Additionally, the role of information technology (IT)–business strategic alignment as a boundary condition is not well-defined. We aim to address these gaps by exploring the impact of Big Data analytics capabilities on firm performance, the mediating function of dynamic capability, and the moderating influence of IT–business strategic alignment. A survey of 352 firms was conducted. Findings revealed a positive impact of Big Data analytics capabilities on firm performance with dynamic capability mediating this effect. IT–business strategic alignment was found to enhance the relationship between Big Data analytics capabilities and dynamic capability, thereby influencing firm performance. We contribute in Big Data analytics capabilities and dynamic capabilities by revealing that consensus problems within multiagent system or Big Data analysis platforms impede the effective transformation of Big Data analytics capability into organizational capabilities. Besides, this article incorporates insights from dynamic capability theory by exploring key predictors of IT–business strategic alignment in overcoming consensus problems and improving the likelihood of success.