The effect of big data on firm’s performance

Although there has been much research interest into how big data lies at the heart of managerial decisions, there is a dearth of empirical work into the impact of big data on firm performance. In this study, grounding on resource-based view, we argue that big data can positively affect firm performance, bringing greater benefits than costs, when firms are able to create and capture value from it. To understand when this happens, it is crucial to unpack the effect of big data into the effects of its “Vs” dimensions. In this study, we propose a way to measure these dimensions and the effects of Volume, Variety and Veracity dimensions on firm performance, in order to shed light on the impact of big data for firms. Our results suggest that high Volume of the big data alone is not sufficient to be beneficial for firms, as also high values of Variety and Value dimensions are crucial. These findings highlight the usefulness of our empirical measures and theoretical grounding for understanding when big data represents a valuable resource that positively affect firm performance, contributing to the academic knowledge of the phenomenon and giving clear indications to managers.