Assessing the impact of big data analytics on decision-making processes, forecasting, and performance of a firm

Abstract

There are various kinds of applications of BDA in the firms. Not many studies are there which deal with the impact of BDA towards issues like forecasting, decision-making, as well as performance of the firms simultaneously. So, there exists a gap in the research. In such a background, this study aims at examining the impacts of BDA on the process of decision-making, forecasting, as well as firm performance. Using resource-based view (RBV) as well as dynamic capability view (DCV) and related research studies, a research model was proposed conceptually. This conceptual model was validated taking help of PLS-SEM approach considering 366 respondents from Indian firms. This study has highlighted that smart decision making and accurate forecasting process can be achieved by using BDA. This research has demonstrated that there is a considerable influence of adoption of BDA on decision making process, forecasting process, as well as overall firm performance. However, the present study suffers from the fact that the study results depend on the cross-sectional data which could invite defects of causality and endogeneity bias. The present research work also found that there is no impact of different control variables on the firm's performance.