Big data and business analytics enabled innovation and dynamic capabilities in organizations: Developing and validating scale

Abstract

In recent years, innovation and competitive advantages have been built through information systems (IS); in particular, big data and business analytics (BDA) capabilities are being highlighted as essential enablers in creating innovation. This research focused on developing a big data scale using the Dynamic Capabilities View (DCV). DCV is based on an organization's ability to sense, seize, and transform capabilities to transform organizations and leverage innovations to remain competitive in the changing business environment. This study is based on convergent and discriminant validity using PLS-SEM with a sample of 191 firms. The proposed model includes twelve traits connected to sensing, seizing, and transforming attributes. The research outcome validates the scale and demonstrates that BDA enables dynamic capabilities and can achieve innovation in organizations when coupled with strategic management practices and IT resources that can be used to measure IT-business value.

Keywords

• Big data
• Business analytics
• Attributes development
• Dynamic capabilities
• Innovation
• Development of scale