Big data challenges for resource-constrained organizations in a developing economy

Abstract

While extant literature showed a positive relationship between big data and firms’ competitive performance, there is still a general lack of understanding concerning the mechanisms through which big data analytics influence performance. In addition, the big data challenges in resource-constrained contexts have remained underexplored in previous research. To fill the void, this exploratory study analyzed the challenges firms might encounter in implementation stage of big data. Based on the resource-based view (RBV) of firms, this paper associated these challenges with an organization’s internal and external resources. By incorporating case study analysis, it presented three use cases from trendy fashionwear, modern footwear, and ethnic clothing industries of Bangladesh, a developing economy in South Asia. The findings show that shortage of financial resources, followed by human, complementary organizational, and technological resources are critical challenges for resource-constrained firms, especially those operating in a developing country. The study not only identified the barriers to implementing big data, but also discussed what firms need to do to handle these challenges. Therefore, it offers new insights into big data by analyzing big data challenges through the lens of resource constraint. It also discusses managerial and policy implications.

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