Unveiling the strategic impact of big data analytics capabilities in the Saudi Arabian banking sector: an explorative approach
Authors: Ragmoun Wided 
Published: November 2024

Purpose

The purpose of this study is to identify a critical pathway of the effect of big data analytics capabilities (BDACs) on strategic vigilance based on hierarchical process and a capability approach.

Design/methodology/approach

The researcher adopted a qualitative approach using interviews and a quantitative approach based on the interpretative structural modeling (ISM) fuzzy cross-impact matrix multiplication applied to classification (MICMAC) approach. A primary theoretical approach was also conducted to identify BDACs previously cited in the literature.

Findings

Four main subdivisions of BDACs were identified: management capabilities, infrastructure flexibility, talent capability and technology. Management capabilities followed by big data technical knowledge and associated with talent capabilities generate a flexible infrastructure to enhance SV. A dynamic capability perspective of knowledge and information is also required for SV.

Research limitations/implications

Despite the opportunity of this research and the originality of results, some limitations have to be mentioned and can constitute further directives for future researchers, such as the problem of result generalization. First, this research was based in Saudi Arabia, and a comparative approach to defining BDAC on an international level can be more beneficial in providing an exhaustive list of these capabilities. Second, reliability issues, in this research can be addressed due to the use of qualitative data collection which is considered by many researchers as unspecified and can lack scientific rigor. Future studies can improve the number of interviews during the data collection process and data process using an advanced methodological approach. Third, the effect of BDAC in SV according to the hierarchical final modal is not quantified, future work can use this research model to appreciate each effect using a quantitative approach such as correlation and structural equation modeling while considering respondents with different profiles to take into account different point of view in this concern.

Practical implications

This research enriches the BDAC and MICMAC literature and contributes to this aspect in three main levels. First, by providing an additional empirical asset in this field, this study offers by the way a new case to the big data literature on the banking sector. Based on the limited knowledge as well as results collected from different databases and rigorously analyzed, this subject was not treated previously and the author could not find similar studies with the same approach dealing with the key BDACs in Saudi Arabia.

Social implications

This research presents three main implications for policymakers and researchers interested in big data analytics (BDA) through a capability and strategic perspective. First, to attain SV, they should prioritize the development of interactive interfaces and open platforms as the primary step before collecting information and deconstructing it to guarantee the generation of knowledge and make decisions effectively. Second, policymakers must introduce organizational technologies in terms of technology management, technical knowledge and technology for decision-making. This requires simultaneous sharing and communication according to relational management. Third, the research conclusions have many critical managerial ramifications for banks in Saudi Arabia while considering the adoption of BDAC. The importance of BDACs (especially technical aspects) in shaping the decision-making to be strategically vigilant emphasizes policymakers’ orientation by paying close attention to these aspects and specific training programs to facilitate the use of such technologies and guarantee strong security measures. Moreover, findings support a balance between technical and functional BDAC.

Originality/value

The adoption of a knowledge-based dynamic capabilities (KBDCs) view to analyze the interaction between different BDACs in banks in Saudi Arabia to be strategically vigilant using a mixed approach.