Exploring the impact of Big Data Analytics Capabilities on the dual nature of innovative activities in MSMEs: A Data-Agility-Innovation Perspective

Abstract

This paper investigates how big data analytics influences the innovative activities of micro, small, and medium enterprises (MSMEs) on the basis of the resource-based and dynamic capabilities views. Studying a survey sample collected from 186 entrepreneurial and MSMEs, we discovered a crucial mediating mechanism in the relationship between them: market agility. Our findings suggest that the use of big data analytics enables MSMEs to enhance their market agility, thereby strengthening their innovation adoption. In addition, an MSME’s strong dynamic capability helps boost the effects of market agility on innovation adoption. While early success traps strengthen the effects of market agility on innovation adoption, they weaken the effects on innovation generation. Our study enriches the existing literature on big data analytics and innovation and provides practical guidance for MSMEs to engage in entrepreneurial innovation through big data analytics.