Big Data Governance and Dynamic Capabilities: The Moderating effect of Environmental Uncertainty

Abstract

With the rise of big data as a strategic tool in contemporary firms, researchers and practitioners have been exploring the ways in which such investments yield the maximum business value. Building on the growing importance of information governance as a means of attaining business value form big data investments, this study examines how it influences a firm’s dynamic capabilities, and how environmental factors impact these effects. To test our proposed research model, we used survey data from 202 chief information officers and IT managers working in Norwegian firms. By means of partial least squares structural equation modeling (PLS-SEM), results show that big data governance has a positive and highly significant effect on sensing, seizing, and transforming capabilities. These effects are magnified under varying combinations of environmental conditions.