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

Abstract

Our study explores the critical role played by organizational ambidexterity capabilities in the link between big data analytics, strategic innovation capabilities, and innovation performance. We developed a conceptual framework based on resource-based and dynamic capability views to examine the direct and indirect relationships among main variables. We used a quantitative approach to collect data from 172 Saudi IT and Telecom firms. We then employed structural equation modeling through Smart-PLS to test the study hypotheses. Our findings revealed that big data analytics and strategic innovation capabilities have a significant impact on organizational ambidexterity and then on innovation performance. Ambidexterity capability mediates between big data analytics capabilities and innovation performance and between strategic innovation capabilities and innovation performance. Our study contributes to the literature on big data and innovation. It offers valuable insights into the potential impacts of big data analytics, strategic innovation, and ambidexterity capabilities on innovation performance. It demonstrates how significantly boosting a firm’s capabilities for improved firms’ innovation performance can potentially enhance performance outcomes (e.g., competitiveness and sustainability). These findings provide managers with meaningful implications regarding the innovation performance that can be achieved by leveraging these important resources and capabilities.