Business value of big data analytics: A systems-theoretic approach and empirical test

John Qi Dong, Chia Han Yang

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Although big data analytics have been widely considered a key driver of marketing and innovation processes, whether and how big data analytics create business value has not been fully understood and empirically validated at a large scale. Taking social media analytics as an example, this paper is among the first attempts to theoretically explain and empirically test the market performance impact of big data analytics. Drawing on the systems theory, we explain how and why social media analytics create super-additive value through the synergies in functional complementarity between social media diversity for gathering big data from diverse social media channels and big data analytics for analyzing the gathered big data. Furthermore, we deepen our theorizing by considering the difference between small and medium enterprises (SMEs) and large firms in the required integration effort that enables the synergies of social media diversity and big data analytics. In line with this theorizing, we empirically test the synergistic effect of social media diversity and big data analytics by using a recent large-scale survey data set from 18,816 firms in Italy. We find that social media diversity and big data analytics have a positive interaction effect on market performance, which is more salient for SMEs than for large firms.

Original languageEnglish
Article number103124
JournalInformation and Management
Volume57
Issue number1
DOIs
Publication statusPublished - 2020 Jan

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Industry
Big data
Business value
Empirical test
System theory
Social media
Marketing
Innovation
Large firms
Theorizing
Market performance
Synergy
Small and medium-sized enterprises

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Information Systems
  • Information Systems and Management

Cite this

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Business value of big data analytics : A systems-theoretic approach and empirical test. / Dong, John Qi; Yang, Chia Han.

In: Information and Management, Vol. 57, No. 1, 103124, 01.2020.

Research output: Contribution to journalArticle

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