BIG Data BIG Gains? Empirical Evidence on the Link Between Big Data Analytics and Innovation

Abstract

Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. BIG Data -BIG Gains? Empirical Evidence on the Link Between Big Data Analytics and InnovationThis paper analyzes the relationship between firms' use of big data analytics and their innovative performance in terms of product innovations. Since big data technologies provide new data information practices, they create novel decision-making possibilities, which are widely believed to support firms' innovation process. Applying German firm-level data within a knowledge production function framework we find suggestive evidence that big data analytics is a relevant determinant for the likelihood of a firm becoming a product innovator as well as for the market success of product innovations. These results hold for the manufacturing as well as for the service sector but are contingent on firms' investment in IT-specific skills. Subsequent analyses suggest that firms in the manufacturing and service sector rely on different data sources and data-related firm practices in order to reap the benefits of big data. Overall, the results support the view that big data analytics have the potential to enable innovation.

The impact of big data analytics on innovation capability and sustainability performance of hotels: evidence from an emerging economy

“…However, this study did not integrate all the three layers of sustainability. Niebel et al . (2019) investigated the relationship between BDA and innovation performance in a representative sample of German firms.…”

“…However, this study did not integrate all the three layers of sustainability. Niebel et al (2019) investigated the relationship between BDA and innovation performance in a representative sample of German firms. The study found that BDA had a positive and significant effect on both the likelihood of being a product innovator and the market success of product innovations.…”

“…As a result, in parallel to maximizing profits, environmental and social sustainability goals are required to be included in an organization's vision (Elkington, 1994). Big data technologies enable innovative decision-making opportunities, commonly seen as beneficial to organizations' innovation processes (Niebel et al, 2019). Concurrently, innovation capabilities are an essential component of an organization's sustainability initiatives.…”

“…Despite many claims that BDA can give rise to business value (Wamba et al, 2017) and enhance firms' innovation activities (Niebel et al, 2019), there is still a knowledge gap regarding the actual organizational features and challenges that are essential for successful initiatives in BDA implementation (Henao-Garc ıa et al, 2021). Next-generation information technology (IT) solutions (smartphones, digital gadgets, scanning devices, cloud computing, the internet of things, etc.)…”