The Power of Big Data Analytics for the Competitive Performance of Digital Startups in an Emerging Economy

In emerging markets, digital startups (DS) play a critical role in driving innovation and addressing socio-economic and environmental challenges. Their importance extends beyond mere survival to achieving superior competitive performance (CP). A critical factor influencing the performance of DS is their resources and capabilities, with Big Data Analytics Capability (BDAC) emerging as particularly critical for startups that manage large volumes of data and aim to achieve operational and market success by strategically leveraging its power. However, the effectiveness of BDAC can vary, and deeper analysis is needed to understand these differences. Many DS failures can be attributed to an inability to systematically analyze data, which leads to poor decision making and underscores the need for stronger BDAC. Based on the Resource-Based View (RBV) theory, this study examines the level of BDAC in 270 Brazilian digital startups, all of which have been in operation for at least three years. Using Partial Least Squares (PLS) regression with PLS-SEM, the research shows that startups with higher levels of BDAC tend to have better operational and market performance, suggesting that investments in BDAC can yield significant returns in terms of sustainable competitiveness and growth; furthermore, investments in training programs to enhance the data analysis skills of DS personnel are important to leverage the quality job in Brazil.