Boosting Innovation Performance through Big Data Analytics Powered by Artificial Intelligence Use: An Empirical Exploration of the Role of Strategic Agility and Market Turbulence

Abstract

Scholars and practitioners have paid attention to the critical role of big data analytics driven by AI in enhancing business performance. However, firms investing in big data analytics often fail to achieve those advantages. Our research explores the critical role played by strategic agility and market turbulence on the link between big data analytics driven by AI and innovation performance. Based on dynamic capabilities view, we developed an integrated model to examine the relationship between our study variables. We utilized a quantitative approach to collect data from manufacturing companies in Saudi Arabia. We employed structural equation modelling (SEM) through AMOS 26.0 to analyze and test the study hypotheses. Our findings indicated that big data analytics driven by AI have a significant impact on strategic agility and innovation performance. It also revealed that strategic agility mediates the relationship between big data analytics driven by AI and innovation performance. The results also showed that higher levels of market turbulence are associated with more robust connections between big data analytics, strategic agility, and innovation performance. Our work provides managers with meaningful implications on the value that organizations can create through the use of big data analytics and strategic agility.

Big Data Analytics, Strategic Capabilities, and Innovation Performance: Mediation Approach of Organizational Ambidexterity

“…For example, in the pharmaceutical industry in Pakistan, Munir et al [45] found that a direct and positive link exists between BDACs and organizational IP. Similarly, Alghamdi and Agag [35] indicated in their study that big data analytics driven by AI from manufacturing companies has a significant and positive impact on IP. Similarly, through a survey of 421 Chinese managers and employees engaged in the field of big data analytics, Zhang and Yuan [29] found that BDACs have a positive effect on IP.…”

“…Consequently, it is complex to deal with traditional data-processing application software. Big data tools are emerging to help firms to collect, process, and analyze data to unlock valuable insights, solve business problems, increase agility and innovation, and make and drive better decisions [35]. Big data seeks to glean intelligence from data to create an opportunity and then translate it into business advantage [36,37].…”

“…Gaining a comprehensive understanding of BDACs and utilizing it efficiently and effectively can contribute to improving a firm's decision-making, creating value, sustaining superior innovation and firm performance, and maintaining competitiveness in dynamic environments [6][7][8]35,43,48,49].…”

“…Innovation performance (IP) refers to the outcomes of a firm's innovation efforts, including the successful launch and differentiation of new products/services, the renewal of administrative systems and business processes to align with the market environment [6,44,63,64], and the firm's ability to create value through these innovation endeavors to outperform competitors in meeting customer and market demands [29,35,40,65]. IP is essential for businesses and industries as it drives competitive advantage, enables adaptation to changing market conditions, facilitates new product/service development, improves operational efficiency, and allows organizations to stay relevant and responsive to evolving customer needs within dynamic competitive landscapes.…”

“…BDACs has been found to significantly impact the performances of organizations in various ways. In the literature on BDACs and performance, several studies investigated and supported their relationships: firm performance [5,17,38,48,50,59,68,69], competitive performance [2], supply chain performance [70,71], business vale creation [42], and sustainable IP [4,35,43,44,47,[72][73][74].…”