The role of informational and human resource capabilities for enabling diffusion of big data and predictive analytics and ensuing performance

Big data and predictive analytics, or BDPA, has received great attention in terms of its role in making business decisions. However, current knowledge on BDPA regarding how it might link organizational capabilities and organizational performance remains unclear. Even more linted is knowledge regarding how human resources (HR) might also work to support this linkage. Drawing from the resource-based view, this chapter proposes a model to examine how information technology deployment (i.e., strategic information technology flexibility, business-BDPA partnership and business-BDPA alignment) and HR capabilities affect organizational performance through BDPA. Survey data from 159 Indian firms show that BDPA diffusion mediates the influence of IT deployment and HR capabilities on organizational performance. In addition, there is a direct effect of IT deployment and HR capabilities on BDPA diffusion, which also has a direct relationship with organizational performance. The findings suggest the important of HR capabilities, which are often overlooked in the quest for more and better technology situations. Informational capabilities are also shown to play an important role in diffusing BDPA, and driving subsequent performance.