Big data analytics capabilities and organizational performance: the mediating effect of dual innovations

Abstract

PurposeFollowing the rapid expansion of data volume, velocity and variety, techniques and technologies, big data analytics have achieved substantial development and a surge of companies make investments in big data. Academics and practitioners have been considering the mechanism through which big data analytics capabilities can transform into their improved organizational performance. This paper aims to examine how big data analytics capabilities influence organizational performance through the mediating role of dual innovations.Design/methodology/approachDrawing on the resource-based view and recent literature on big data analytics, this paper aims to examine the direct effects of big data analytics capabilities (BDAC) on organizational performance, as well as the mediating role of dual innovations on the relationship between (BDAC) and organizational performance. The study extends existing research by making a distinction of BDACs' effect on their outcomes and proposing that BDACs help organizations to generate insights that can help strengthen their dual innovations, which in turn have a positive impact on organizational performance. To test our proposed research model, this study conducts empirical analysis based on questionnaire-base survey data collected from 309 respondents working in Chinese manufacturing firms.FindingsThe results support the proposed hypotheses regarding the direct and indirect effect that BDACs have on organizational performance. Specifically, this paper finds that dual innovations positively mediate BDACs' effect on organizational performance.Originality/valueThe conclusions on the relationship between big data analytics capabilities and organizational performance in previous research are controversial due to lack of theoretical foundation and empirical testing. This study resolves the issue by provides empirical analysis, which makes the research conclusions more scientific and credible. In addition, previous literature mainly focused on BDACs' direct impact on organizational performance without making a distinction of BDAC's three dimensions. This study contributes to the literature by thoroughly introducing the notions of BDAC's three core constituents and fully analyzing their relationships with organizational performance. What's more, empirical research on the mechanism of big data analytics' influence on organizational performance is still at a rudimentary stage. The authors address this critical gap by exploring the mediation of dual innovations in the relationship through survey-based research. The research conclusions of this paper provide new perspective for understanding the impact of big data analytics capabilities on organizational performance, and enrich the theoretical research connotation of big data analysis capabilities and dual innovation behavior.

The impact of Big Data Analytics in Developing Strategic Performance using Balanced Scorecard: A Field Study in Egypt

“…In addition, Su et al (2021) examined the direct effects of Big Data Analytics Capabilities (BDAC) on organizational performance, as well as the mediating role of dual innovations on the relationship between (BDAC) and organizational performance. This study conducts empirical analysis based on questionnaire-base survey data collected from 309 respondents working in Chinese manufacturing firms.…”

“…The concept of big data analytics capability (BDAC) is broadly defined as the competence to deliver business insights using data management, infrastructure (technology) and talent ability (people) to transform the business into a competitive force (Akter et al, 2016). Similarly, Su et al, (2021) defines the concept of big data analytics capability as a dynamic ability to efficiently orchestrating and deploying the data, data management, data technology and talent for the generation of new insights to make decisions in real time, promoting the gaining of competitive advantages and organizational performance. With the rapid development of the Internet, the researcher believes that the capabilities of big data analysis have a vital role in improving the success rate of businesses and the performance of facilities.…”

“…According to Su et al, (2021), An enterprise is organized with the main purpose of earning profits and therefore the ultimate objective of any related business resources, capabilities and activities is to obtain organizational performance. As private organizational sources, big data analysis capabilities are created with the aim of obtaining and improving company performance.…”

“…In addition, the previous studies have focused on the relationship between big data analytics capability and financial performance (McAfee and Brynjolfsson, 2012, Akter et al, 2016, Wamba et al, 2017, Su et al, 2021. These previous studies highlight the usefulness of that relationship for price optimization and profit maximization; sales, profitability, and market share; and return on investment (ROA).…”

The Value of Big Data Analytics Pillars in Telecommunication Industry

“…This was accomplished in the study by reducing paper reports, a tangible improvement, and improving the company's reputation, an intangible benefit. As a result, organizations with a stronger Big Data Analytic Capability will gain extensive insights, resulting in the best possible organizational performance [46,49]. As IT is a critical component of Big Data analytic capability, it is argued that the ability to effectively activate and utilize resources associated with analytic capabilities has a positive effect on organizational performance and results in a competitive advantage [22,50,51].…”