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Initial Evidence on the Impact of Big Data Implementation on Firm Performance

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Abstract

Big data has been widely discussed for several years. However, whether the implementation of big data really bring in observable benefits on firm performance remains a critical issue for the top management team. In this study, we investigate the association between big data implementation and the corresponding financial performance, productivity, and market value. Our results demonstrate that big data implementation is positively related to an improvement in financial performance and the market value but such effect is not stronger for first movers. Implications are discussed.

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Notes

  1. http://www.wsj.com/articles/the-mistakes-companies-make-with-big-data-1455075886

  2. http://www.wsj.com/articles/SB100014241278873241962043578298381588348290

  3. We exclude companies from the following industries: manufacturing electronic computers (SIC code 3571), computer storage devices (SIC code 7373), computer processing and data preparation and processing services (SIC code 7374), information retrieval services (SIC code 7375), and computer facilities management services (SIC code 7376).

  4. Note that the size effect has been included in the model since the model decomposes a ratio into a regression model. That is, regardless of the size effect, we are looking at the association between the numerator and denominator.

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Acknowledgements

The authors are grateful to the participants’ comments from the AAA AIS Section mid-year meeting. The authors are also thankful to the financial support provided by National Chung Cheng University and DePaul University. This project is also funded by the Ministry of Science and Technology in Taiwan (MOST # 104-2410-H-194-088-MY2).

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Authors and Affiliations

  1. Department of Business Administration, National Chung Cheng University, Chia-Yi, Taiwan

    Cheng-Kui Huang & Tzu-Yen Huang

  2. School of Accountancy and MIS, DePaul University, 1 E. Jackson Blvd. DePaul Center Suite 6028, Chicago, IL, 60604, USA

    Tawei Wang

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  1. Cheng-Kui Huang
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Correspondence to Tawei Wang.

Appendix

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Table 9 Keywords used in the study
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Huang, CK., Wang, T. & Huang, TY. Initial Evidence on the Impact of Big Data Implementation on Firm Performance. Inf Syst Front 22, 475–487 (2020). https://doi.org/10.1007/s10796-018-9872-5

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