Exploring data-driven innovation: What’s missing in the relationship between big data analytics capabilities and supply chain innovation?

Abstract

Data-driven innovations (DDI) have significantly impacted firms’ operations thanks to the massive exploitation of huge data. However, to leverage big data and achieve supply chain innovation, a variety of complementary resources are necessary. In this study, we hypothesise that supply chain innovation (SCI) is dependent on firms’ big data analytics capabilities (BAC). Furthermore, we propose that this relation is mediated by two crucial capabilities of agility and adaptability that enable firms to efficiently meet the challenges of supply chain ambidexterity. Finally, we also test the moderating role of technology uncertainty in our research model. We collected data from 386 manufacturing firms in Pakistan and tested our model using structural equation modelling. The results confirmed our initial hypotheses that agility and adaptability both mediated our baseline relationship of BAC and big data innovation in supply chains. We further found support for the moderating role of technology uncertainty. Furthermore, technology uncertainty moderates the relationship between BAC and SCI. This study extends the current literature on digital analytics capabilities and innovation along the supply chain. Practically, our research suggests that investment in big data can result in affirmative consequences, if firms cultivate capabilities to encounter supply chain ambidexterity through agility and adaptability. Accordingly, we suggest that managers belonging to manufacturing firms need to build up these internal capabilities and to monitor and assess technology uncertainty in the environment.

Internet of things, big data analytics and operational performance: the mediating effect of supply chain visibility

“…BDA enhances supply chain performance by providing information and new insight into the selection of suppliers (Lamba et al. , 2019; Yildizbasi and Arioz, 2022) and the best possible distribution networks (Al-Khatib and Ahmed, 2022) as well as improving the level of innovation within the supply chain (Bhatti et al. , 2022; Centobelli et al.…”

The lean supply chain management response to technology uncertainty: consequences for operational performance and competitiveness

“…, 2020) that is receiving the most attention in the current context of technological change in most industries is TU. TU refers to an industry being characterized by rapid and unpredictable changes in production and information technologies, a high obsolescence rate and the need to keep abreast of technology changes to remain competitive (Chen and Paulraj, 2004) and has been considered an important contingent factor capable of enhancing SC collaboration (Coronado Mondragon and Coronado Mondragon, 2018), SC innovation (Bhatti et al. , 2022) and SC integration (Yang and Zhao, 2016).…”

Perceived customer journey innovativeness and customer satisfaction: a mixed-method approach

“…DDI refers to the process, techniques, and technologies that allow firms to analyze big data (Babu et al, 2021 ; Bhatti et al, 2022 ) related to customers, business partners, and competitors based on innovation and value creation, thus helping firms generate competitive advantages (Kumar et al, 2016 ).…”

“…However, creating value from big data to achieve innovative outcomes is not an easy process (Saura et al, 2022 ; Shamim et al, 2021 ). Fortunately, DDI provides the right approach for procuring, analyzing, and making the right decisions (Babu et al, 2021 ; Bhatti et al, 2022 ). Furthermore, DDI enables businesses to derive value from data, suggest innovation, and advise on competitive advantages.…”

“…Data-driven innovation (DDI) consists of procuring, analyzing, and making decisions based on customer data (Babu et al, 2021 ; Bhatti et al, 2022 ; Rindfleisch et al, 2017 ). A huge amount of data obtained from using emerging technologies, such as blockchain, cloud computing, artificial intelligence, data analytics, and the Internet-of-things enable firms to create DDI in developing new products or improving existing ones (Akter et al, 2016 , 2022 ; Babu et al, 2021 ; Ciampi et al, 2021 ; Duan et al, 2020 ; Wamba et al, 2017 ).…”