Leveraging big data for strategic marketing: A dynamic capabilities model for incumbent firms

Big data can improve the profitability and competitiveness of organisations by extending market knowledge and strategic marketing insight. However, there is a disconnect between the opportunities presented and the read- iness of incumbent firms to engage with big data, with consequences for their ability to benefit from it. With many organisations overwhelmed by how to manage and use big data, the paper identifies the dynamic capa- bilities required to exploit big data for strategic marketing and to improve market responsiveness. Data gathered from in-depth, semi-structured interviews with senior managers from four case study organisations, reveals the five interconnected dynamic capabilities required to leverage value from big data. These capabilities are shown to be part of a sequential 'sensing-reconfiguring-seizing' process, in which the reconfiguring capabilities play a vital role. The findings contribute to dynamic capabilities theory by identifying and mapping the configuration of big data capabilities required to support strategic marketing initiatives. A new Big Data Capabilities Model is developed, which can be used by organisations to guide how they can leverage value from big data.

Automated summary

Big data can improve profitability and competitiveness of organizations by expanding market knowledge and strategic marketing insight. However, incumbent firms are not fully prepared to engage with big data, limiting their ability to benefit from it. The study identifies five dynamic capabilities required to leverage value from big data and develop market responsiveness, based on in-depth interviews with senior managers from four case study organizations. These capabilities are part of a sequential 'sensing-reconfiguring-seizing' process, with reconfiguring capabilities playing a vital role. The findings contribute to dynamic capabilities theory and a new Big Data Capabilities Model is developed to guide organizations in leveraging value from big data.