In the digital economy, firm performance increasingly depends on the ability to convert raw data into strategic knowledge that generates sustained information advantage. This theory-development article re-examines the knowledge-based view through a digital lens, distinguishing data as raw inputs, information as processed signals, and knowledge as contextually applied understanding. We argue that information advantage emerges not automatically from data volume but through deliberate analytics-enabled transformation processes supported by digital infrastructures. We synthesize insights on data as a strategic resource, analytics capabilities, digital information asymmetries, and knowledge accumulation in data-rich environments. The article advances five theoretical propositions that link data resources to knowledge development, strategic action, and superior firm performance while identifying organizational moderators that strengthen or erode information advantage. A conceptual model illustrates the dynamic flow from data to performance with feedback loops. By integrating the knowledge-based view with digital-specific mechanisms, this work offers a novel framework for understanding competitive positioning in digital markets. Theoretical contributions and managerial implications for capability development are discussed.
Institute for Management, Business, and Accounting Studies