Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 673-686 |
| Journal | European Journal of Operational Research |
| Volume | 281 |
| Issue number | 3 |
| Early online date | 20 Jun 2018 |
| DOIs | |
| Publication status | E-pub ahead of print - 20 Jun 2018 |
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Bibliographical note
© 2018, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/Keywords
- analytics
- innovation
- big data
- data-driven culture
- absorptive capacity
Cite this
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Understanding the Impact of Business Analytics on Innovation. / Duan, Yanqing; Cao, Guangming; Edwards, John S.
In: European Journal of Operational Research, Vol. 281, No. 3, 16.03.2020, p. 673-686.Research output: Contribution to journal › Article
TY - JOUR
T1 - Understanding the Impact of Business Analytics on Innovation
AU - Duan, Yanqing
AU - Cao, Guangming
AU - Edwards, John S
N1 - © 2018, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
PY - 2018/6/20
Y1 - 2018/6/20
N2 - Advances in Business Analytics in the era of Big Data have provided unprecedented opportunities for organizations to innovate. With insights gained from Business Analytics, companies are able to develop new or improved products/services. However, few studies have investigated the mechanism through which Business Analytics contributes to a firm's innovation success. This research aims to address this gap by theoretically and empirically investigating the relationship between Business Analytics and innovation. To achieve this aim, absorptive capacity theory is used as a theoretical lens to inform the development of a research model. Absorptive capacity theory refers to a firm’s ability to recognize the value of new, external information, assimilate it and apply it to commercial ends. The research model covers the use of Business Analytics, environmental scanning, data-driven culture, innovation (new product newness and meaningfulness), and competitive advantage. The research model is tested through a questionnaire survey of 218 UK businesses. The results suggest that Business Analytics directly improves environmental scanning which in turn helps to enhance a company's innovation. Business Analytics also directly enhances data-driven culture that in turn impacts on environmental scanning. Data-driven culture plays another important role by moderating the effect of environmental scanning on new product meaningfulness. The findings demonstrate the positive impact of business analytics on innovation and the pivotal roles of environmental scanning and data-driven culture. Organizations wishing to realize the potential of Business Analytics thus need changes in both their external and internal focus.
AB - Advances in Business Analytics in the era of Big Data have provided unprecedented opportunities for organizations to innovate. With insights gained from Business Analytics, companies are able to develop new or improved products/services. However, few studies have investigated the mechanism through which Business Analytics contributes to a firm's innovation success. This research aims to address this gap by theoretically and empirically investigating the relationship between Business Analytics and innovation. To achieve this aim, absorptive capacity theory is used as a theoretical lens to inform the development of a research model. Absorptive capacity theory refers to a firm’s ability to recognize the value of new, external information, assimilate it and apply it to commercial ends. The research model covers the use of Business Analytics, environmental scanning, data-driven culture, innovation (new product newness and meaningfulness), and competitive advantage. The research model is tested through a questionnaire survey of 218 UK businesses. The results suggest that Business Analytics directly improves environmental scanning which in turn helps to enhance a company's innovation. Business Analytics also directly enhances data-driven culture that in turn impacts on environmental scanning. Data-driven culture plays another important role by moderating the effect of environmental scanning on new product meaningfulness. The findings demonstrate the positive impact of business analytics on innovation and the pivotal roles of environmental scanning and data-driven culture. Organizations wishing to realize the potential of Business Analytics thus need changes in both their external and internal focus.
KW - analytics
KW - innovation
KW - big data
KW - data-driven culture
KW - absorptive capacity
UR - https://www.sciencedirect.com/science/article/pii/S0377221718305447
U2 - 10.1016/j.ejor.2018.06.021
DO - 10.1016/j.ejor.2018.06.021
M3 - Article
VL - 281
SP - 673
EP - 686
JO - European Journal of Operational Research
JF - European Journal of Operational Research
SN - 0377-2217
IS - 3
ER -