Does big data utilization improve firm legitimacy?
Does big data utilization improve firm legitimacy?
Drawing on the resource-based view, we examine how big data use impacts firm legitimacy. Using a panel dataset of the Chinese firms over the period 2012–2019, our Tobit instrumental variable regression results show a positive impact of big data on firm legitimacy. In particular, we find that an increase of one point in big data utilization is associated with a probability of 27.4 % increase in firm legitimacy. This effect is found stronger for firms in highly competitive industries. This study contributes to the nascent literature on big data and sheds light on how firms can take advantage of data-driven insights to manage the organizational environment.
Big data utilization, Tobit instrumental variable regression, China, Data-driven insights, Information, Firm legitimacy
Saeed, Abubakr
9b178710-8c61-4298-809a-0d3f0b674ab9
Riaz, Hammad
ca32d792-3c07-4033-a93f-d2b5d1c98098
Baloch, M.S
0baa859e-4d0d-4dda-8433-d813655c88b5
13 July 2022
Saeed, Abubakr
9b178710-8c61-4298-809a-0d3f0b674ab9
Riaz, Hammad
ca32d792-3c07-4033-a93f-d2b5d1c98098
Baloch, M.S
0baa859e-4d0d-4dda-8433-d813655c88b5
Saeed, Abubakr, Riaz, Hammad and Baloch, M.S
(2022)
Does big data utilization improve firm legitimacy?
Technological Forecasting and Social Change, 182 (9), [121847].
(doi:10.1016/j.techfore.2022.121847).
Abstract
Drawing on the resource-based view, we examine how big data use impacts firm legitimacy. Using a panel dataset of the Chinese firms over the period 2012–2019, our Tobit instrumental variable regression results show a positive impact of big data on firm legitimacy. In particular, we find that an increase of one point in big data utilization is associated with a probability of 27.4 % increase in firm legitimacy. This effect is found stronger for firms in highly competitive industries. This study contributes to the nascent literature on big data and sheds light on how firms can take advantage of data-driven insights to manage the organizational environment.
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Accepted/In Press date: 22 June 2022
Published date: 13 July 2022
Keywords:
Big data utilization, Tobit instrumental variable regression, China, Data-driven insights, Information, Firm legitimacy
Identifiers
Local EPrints ID: 476669
URI: http://eprints.soton.ac.uk/id/eprint/476669
ISSN: 0040-1625
PURE UUID: f12a4b77-ac5e-4c1b-a69b-00c3f31e953b
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Date deposited: 10 May 2023 17:22
Last modified: 17 Mar 2024 04:18
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Author:
Abubakr Saeed
Author:
Hammad Riaz
Author:
M.S Baloch
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