Big Data Analytics Capabilities and Innovation: The Mediating Role of Dynamic Capabilities and Moderating Effect of the Environment

Abstract

With big data analytics growing rapidly in popularity, academics and practitioners have been considering the means through which they can incorporate the shifts these technologies bring into their competitive strategies. Drawing on the resource‐based view, the dynamic capabilities view, and on recent literature on big data analytics, this study examines the indirect relationship between a big data analytics capability (BDAC) and two types of innovation capabilities: incremental and radical. The study extends existing research by proposing that BDACs enable firms to generate insight that can help strengthen their dynamic capabilities, which in turn positively impact incremental and radical innovation capabilities. To test their proposed research model, the authors used survey data from 175 chief information officers and IT managers working in Greek firms. By means of partial least squares structural equation modelling, the results confirm the authors’ assumptions regarding the indirect effect that BDACs have on innovation capabilities. Specifically, they find that dynamic capabilities fully mediate the effect on both incremental and radical innovation capabilities. In addition, under conditions of high environmental heterogeneity, the impact of BDACs on dynamic capabilities and, in sequence, incremental innovation capability is enhanced, while under conditions of high environmental dynamism the effect of dynamic capabilities on incremental innovation capabilities is amplified.

Big Data and Performance: What Can Management Research Tell us?

“…(), Mikalef et al . () and Yu et al . (2019) contribute to research in the strategic stream, but at the same time highlight the role of additional resources when exploiting Big Data.…”

“…Mikalef et al . () examine the relationship between Big Data analytics capability (BDAC) and a key determinant of intangible firm resource, namely innovation capabilities. Their research, which draws on the RBV and the DCV, examines whether BDAC enhances both incremental and radical innovation capabilities.…”

“…The papers of Akhtar et al (2019), Mikalef et al (2019) and Yu et al (2019) contribute to research in the strategic stream, but at the same time highlight the role of additional resources when exploiting Big Data. Indeed, Akhtar et al (2019) focus on multidisciplinary teams.…”

“…The results suggest that the presence of multidisciplinary team enables firm to exploit their Big Data holdings that in turn leads to an improvement in performance. Mikalef et al (2019) examine the relationship between Big Data analytics capability (BDAC) and a key determinant of intangible firm resource, namely innovation capabilities. Their research, which draws on the RBV and the DCV, examines whether BDAC enhances both incremental and radical innovation capabilities.…”

An Examination of Task-Technology Fit in Public Administration and Management: A Configurational Approach

“…The findings demonstrate that there are unique combinations of critical factors that contribute to making technology work of public administration service professionals, and that these do not only relate to the technology, but also to its fit with specific tasks, the routinization of work, as well as how organizations plan and diffuse them. This raises the question of how organizations should plan such initiatives to prepare for preadoption, and to facilitate continued and optimal usage [52]. From a practical point of view, the results of this study can be used by technology managers to formulate different strategies around digital technologies in the public administration sector.…”