A recipe for big data value creation

Purpose: The purpose of this paper is to present a process-theory-based model of big data value creation in a business context. The authors approach the topic from the viewpoint of a single firm. Design/methodology/approach: The authors reflect current big data literature in two widely used value creation frameworks and arrange the results according to a process theory perspective. Findings: The model, consisting of four probabilistic processes, provides a “recipe” for converting big data investments into firm performance. The provided recipe helps practitioners to understand the ingredients and complexities that may promote or demote the performance impact of big data in a business context. Practical implications: The model acts as a framework which helps to understand the necessary conditions and their relationships in the conversion process. This helps to focus on success factors which promote positive performance. Originality/value: Using well-established frameworks and process components, the authors synthetize big data value creation-related papers into a holistic model which explains how big data investments translate into economic performance, and why the conversion sometimes fails. While the authors rely on existing theories and frameworks, the authors claim that the arrangement and application of the elements to the big data context is novel.