Boundary-spanning search and breakthrough innovation: the moderating role of big data analytics capability

Abstract

PurposeThe rapid advancement of digital transformation requires a shift in firms’ focus from past met needs to both latent future and unmet past needs. However, how boundary-spanning search with future orientation and past orientation affects breakthrough innovation remains unclear. This study thus aims to investigate the relationship between boundary-spanning search and breakthrough innovation from the perspective of search orientation.Design/methodology/approachIn terms of search orientation, this study divides boundary-spanning search into forward-looking search and backward-looking search. Drawing on resource-based view, this study develops a theoretical model in which big data analytics capability moderates the effects of forward-looking and backward-looking searches on breakthrough innovation. Empirical analyses were conducted on data from China’s advanced manufacturing firms. Research model and hypotheses were tested through multiple regression.FindingsThe results confirm that forward-looking search has a positive effect on breakthrough innovation, and big data analytics capability strengthens this positive effect. Furthermore, backward-looking search has an inverted U-shaped effect on breakthrough innovation. Interestingly, as big data analytics capability increases, this inverted U-shaped curve flattens and becomes almost linear.Originality/valueThis study uncovers the different effects of boundary-spanning search with different orientations on breakthrough innovation and extends the research on the relationship between boundary-spanning search and breakthrough innovation by incorporating search orientation. Furthermore, by demonstrating the moderating role of big data analytics capability, this study provides a crucial condition under which boundary-spanning search can enhance breakthrough innovation.