Big data and firm performance: The roles of market-directed capabilities and business strategy

•We propose that resource complementarity gives rise to a higher-order, strategic firm asset we refer to as “big data resources.”•The study results reveal that big data resources primarily improve firm performance by enhancing the market-directed capabilities.•Big data resources account for 13% of the variance in the performance of firms with a differentiation strategy and 3% for cost-leadership. Despite being the object of much interest, deep insights regarding why and when investments in big data resources enhance firm performance are lacking in the literature. Building on the resource-based view (RBV) and data provided by 301 senior marketing managers, this study reveals that big data resources primarily improve firm performance by enhancing the market-directed capabilities of the firm. In addition, the data indicate that firms pursuing a differentiation rather than cost-leadership strategy gain most from big data resource investments and that such resources account for 13 % of the variance in the performance of firms pursuing a differentiation strategy.