Leveraging big data analytics capability for firm performance: the moderating role of data governance

Purpose In the era of digital transformation, leveraging big data has become a strategic imperative for sustaining competitive advantage. However, the impact of Big Data Analytics Capability (BDAC) on firm performance depends on the development of complementary organisational capabilities and governance mechanisms. Grounded in the integrated model, this study aims to investigate how BDAC influences firm performance through the mediating roles of organisational capabilities and the moderating role of data governance. Design/methodology/approach Survey data from 227 Forbes Global 2000 firms were analysed using partial least squares hierarchical component modelling (HCM). Findings Dynamic and innovative capabilities significantly mediate the BDAC–performance relationship. Data governance strengthens the effect of BDAC on dynamic and operational capabilities but not on innovative capability. Research limitations/implications HCM improves model parsimony for complex capability–performance relationships, while cross-validated predictive ability test (CVPAT) confirms strong predictive validity and explains the internal mechanisms linking BDAC to performance. These methodological insights strengthen the theoretical understanding of how data-driven capabilities create value. Practical implications The findings suggest that managers should leverage BDAC to enhance dynamic and innovative capabilities, supported by robust data governance that reinforces BDAC's influence on dynamic and operational capabilities. Effective governance fosters organisational agility, enabling firms to sustain performance and support broader sustainability objectives. Originality/value BDAC influences firm performance through dynamic, operational and innovative capabilities, with a contingent effect of data governance. The study advances theory by integrating the resource-based view with the dynamic capabilities perspective and applies rigorous predictive modelling to clarify these mechanisms.