Big Data Analytic Capabilities and Competitive Advantage in South Africa

The value of Big Data Analytics in driving business decisions has been a strategic focus of business leaders in the past few years. When embedded in business operations, Big Data Analytics provides valuable and timely insights for competitive advantage. While developed countries have widely adopted the strategic benefits of Big Data Analytics, in South Africa, implementation has been slower due to challenges such as a volatile economy, inadequate infrastructure, and a diverse customer base that requires innovative approaches to achieve competitive advantage. This study explores how Big Data Analytics, as the independent variable, influences competitive advantage in South African businesses through the mediating pathways of dynamic and operational capabilities in a rapidly changing environment. An exploratory sequential mixed-method design was used. Qualitative insights gathered from a small expert sample identified core themes, which were quantitatively assessed through a structured survey of 110 business leaders across various sectors, including finance, retail, logistics, telecommunications, and insurance. The study found that 74% of respondents reported difficulty in retaining Big Data Analytics talent, and 69% indicated limited strategic alignment between Big Data Analytics initiatives and business goals. Other key challenges included the exorbitant cost of implementation, data silos, and unskilled employees. Nevertheless, businesses that have implemented Big Data Analytics in their operations were found to exhibit enhanced customer insight, improved market responsiveness, and greater agility. Strategic recommendations include aligning Big Data Analytics with business goals, adopting scalable technologies, enhancing capabilities through partnerships, and fostering a data-driven culture. Government is also encouraged to invest in digital infrastructure, skills training, and data literacy initiatives. These findings offer practical implications for both business leaders and policymakers navigating digital transformation in developing economies. Future research should explore sector-specific applications of Big Data Analytics within the South African context.