The relationship between information technology capability and firm performance in the age of big data analytics with empirical evidence from US companies

Abstract

The purpose of this study is to investigate the relationship between information technology (IT) capability and firm performance in the age of big data analytics (BDA) in the 2010s within a context of US companies. After categorizing firms into pairs of IT leaders and control groups, Wilcoxon signed-rank test and regression analysis are employed to examine how the firm performance of IT leaders and control groups have changed during 2010 to 2017. This research finds that no significant relationship between IT capability and firm performance exists in the age of BDA for US companies. This study will be beneficial to academics and practitioners in further understanding how the adoption and application of BDA derived from IT capability has and will affect the firm performance.