Approaching a Data-Dominant Logic

Abstract

This paper introduces the construct of "data-dominant logic". The findings of a multi-step exploratory study indicate that SME have an established mindset (dominant logic) that often hinders these firms from turning data in innovative products, services, and business models. The availability of large amounts of data and the use of this data through data science-driven practices has reached a stage when it now enables new and promising possibilities for firms to innovate. However, the actual use of data and data science insights has proven to be difficult for many companies. The firms under consideration in this paper recognize that the availability of data fundamentally changes their businesses. But also, they lack the appropriate culture, mindset, and business repertoire that would enable them to act by turning data into innovation. The paper concludes that firms first need to establish a new mindset in which data plays a central role. Here I term this mindset "data-dominant logic" (DDL). Future research is required to further concretize the construct beyond this introduction.

Keywords

• data science
• data-dominant logic
• dominant logic
• empirical study
• organizational and managerial requirements
• smes