SYNTHETIC DATA FROM DATA DROUGHT TO SYNTHETIC PLENITUDE: Economic Implications of Internal Data Sources in Times of Scarcity

Abstract

This thesis explores how international firms utilize synthetic data, and examines its advantages and challenges. The research questions focus on exploring how this technology can solve limitations to data access from a legal and strategic perspective, as well as the impact of internally generated knowledge on managerial choices. The study follows a thematic analysis approach based on semi-structured interviews, following the dynamic capabilities theories and the resource-based view to comprehensively analyze the practical impact of synthetic data. The results suggest that synthetic data offers significant strategic benefits, increasing the flexibility and adaptability of international firms. As few firms are already using this technology, it does also represent a source of sustained competitive advantage, especially allowing to obtain essential or unique knowledge, and safely share it across borders. Additionally, the findings suggest that there are challenges of practical nature, like demanding initial research, that may pose obstacles to a successful adoption of the technology.