A note on big data analytics capability development in supply chain

TLDR

Big data analytics is increasingly vital across business functions, especially in supply chain and operations, yet little is known about what enables firms to develop BDA capability for competitive advantage. This study seeks to identify the factors that facilitate or hinder a firm’s ability to build and leverage BDA capability. The authors conduct a qualitative analysis based on field visits, interviews with senior managers, and secondary sources. Technical capacity, the competitive environment, and intra‑firm power dynamics are key determinants of successful BDA capability development and utilization.

Abstract

Big data analytics (BDA) are gaining importance in all aspects of business management. This is driven by both the presence of large-scale data and management's desire to root decisions in data. Extant research demonstrates that supply chain and operations management functions are among the biggest sources and users of data in the company. Therefore, their decision-making processes would benefit from increased use of BDA technologies. However, there is still a lack of understanding of what determines a company's ability to build BDA capability to gain a competitive advantage. In this study, we attempt to answer this fundamental question by identifying the factors that assist a company in or inhibit it from building its BDA capability and maximizing its gains through BDA technologies. We base our findings on a qualitative analysis of data collected from field visits, interviews with senior management, and secondary resources. We find that, in addition to technical capacity, competitive landscape and intra-firm power dynamics play an important role in building BDA capability and using BDA technologies.