Leading Role of Big Data Analytic Capability in Innovation Performance: Role of Organizational Readiness and Digital Orientation

Abstract

The advancement of technology offers various opportunities for business organizations to achieve sustainable growth. Through emerging technologies, business organizations are able to collect and analyze essential information vital for the acceleration of innovation. Therefore, this study investigated how big data contribute to the innovation activities of manufacturing entrepreneurs in terms of big data analytic capability (BDAC). The aim of this study was to relate BDAC to organizational readiness and innovation performance (IP). Moreover, we examined the mediating role of organizational readiness between BDAC and IP. We also examined the strengthening role of digital orientation. To collect the study data, we approached 494 frontline managers of the manufacturing sector of Saudi Arabia. The collected data were analyzed using statistical techniques such as descriptive, correlation, and hierarchical regression techniques. We found that BDAC plays a vital role in developing organizational readiness and IP. The findings also proved that organizational readiness has a significant effect on IP. The results revealed that organizational readiness mediates between BDAC and IP.

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

“…This study suggested positive and direct relationships among the main variables. First, its finding confirms the positive direct relationship between BDACs and IP, and it is consistent with previous studies [4,11,35,44,45,72,74]. Second, regarding the hypothesis that stated that there is a positive relationship between SIC and IP, the finding of this study is in line with previous research [6,51,63,64].…”

“…The term BDACs refers to a firm's ability to leverage big data to gain strategic and operational insight [8,[42][43][44]. It also pertains to the firm's ability to assemble, integrate, and deploy its big data-specific resources [9].…”

“…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].…”

Exploring the Nexus of Organizational Culture, Digital Capabilities, and Organizational Readiness for Change in Primary School in Digital Transformation: A Quantitative Analysis

“…Jun et al (2022) reveal a significant and positive relationship between digital platform capability, improvisational capability, organizational readiness, and innovation performance. Binsaeed et al (2023) find that Big Data and Analytics Capabilities (BDAC) are vital in developing organizational readiness and intellectual property. Jones et al (2005) find that change readiness is a mediated connection between system utilization and reshaping capacities.…”