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.