Big Data Analytics (BDA) and Degree of Internationalization: the Interplay between Governance of BDA Infrastructure and BDA Capabilities

Abstract

In order to face the challenges of internationalization and to cope more efficiently with the uncertainty of foreign expansion, firms are called to analyze an increasing amount of real-time semi-structured and unstructured datasets. In this sense, big data analytics (BDA) can become strategic in stimulating the international growth of small and medium-sized enterprises (SMEs). However, the specific relationship between BDA and internationalization has been analyzed fragmentarily within the mainstream literature. With the purpose of shedding light on this relationship, the authors drew on resource-based view (RBV) and collected data through a questionnaire directed to CEOs of 266 SMEs, receiving 103 responses. A quantitative analysis based on an Ordinary Least Squares (OLS) regression showed that the relationship between governance of BDA infrastructure and the degree of internationalization (DOI) is not significant, while the direct effect of BDA capabilities as well as the interaction term between BDA infrastructure and BDA capabilities are positive and significant. This suggests that the governance of BDA per se is not enough for enhancing internationalization in SMEs. On the contrary, this article points out the relevance of developing specific BDA capabilities and the existence of a positive interplay between governance of BDA infrastructure and BDA capabilities that can exploit the new knowledge coming from BDA in SME international growth. © 2020, The Author(s).