Big data analytics capabilities and MSME innovation and performance: A double mediation model of digital platform and network capabilities

Abstract

Drawing on dynamic capabilities and the resource-based view, we propose a conceptual model that encompasses big data analytics capabilities (BDAC), digital platform capabilities and network capabilities, supply chain innovation, and firm performance. We use the structural equation modeling to empirically validate this model on the time-lagged data of 221 micro, small, and medium enterprises (MSMEs) in the manufacturing sectors. The empirical results of our data analysis showed that BDAC significantly improved platform and networking capabilities. BDAC also improved supply chain innovation and thus financial performance. Our data indicated that networking capabilities mediated the relationships of both (a) BDAC-supply chain innovation and (b) BDAC-financial performance. Meanwhile, digital platforms mediated only the BDAC-supply chain innovation relationship. The outcomes of sequential mediation confirmed the role of both digital platform and network capabilities and supply chain innovation in the BDAC-firm performance link. Our results provide theoretical implications to operations management and offer practical insights for managers working in manufacturing MSMEs.