The role of big data and dynamic capabilities in formulating organization strategies and business decisions

Abstract

The primary purpose of this study is to explore the role of big data in formulating the organization's strategic decisions, thereby enhancing its dynamic capabilities. The main framework used in this study is the Dynamic Capabilities framework. In the era of big data, scholars have widely used dynamic capabilities to discover how big data systems affect the organization's strategies and decisions. The empirical part of this thesis consists of a case study of a small-scale consulting firm that specializes in providing big data and analytics consulting services. A total of 10 people, including consultants, business experts, executives, and customers, were interviewed to gather data. The data is then analyzed using content analysis. The analysis from the study highlights the crucial role big data plays in shaping an organization's decision-making processes and helps enhance the organization’s dynamic capabilities. By leveraging big data, organizations can precisely sense emerging opportunities and threats, seize actionable insights, and transform workflows to align with evolving market demands. However, analysis reveals that the full potential of big data can be unlocked only through robust organizational collaboration, seamless communication across technical, business, and leadership teams, and the establishment of a unified data strategy. These elements ensure that the data initiatives do not run as isolated efforts but in an integrated fashion to drive agility, innovation, and resilience and ultimately help the organization gain sustained competitive advantage in the dynamic market conditions.