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.

Keywords

• big data analytic capability
• organizational readiness
• innovation performance
• digital orientation