IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i24p7145-d297587.html
   My bibliography  Save this article

Big Data, Big Data Analytics Capability, and Sustainable Innovation Performance

Author

Listed:
  • Shengbin Hao

    (School of Management, Harbin Institute of Technology, Harbin 150001, China)

  • Haili Zhang

    (School of Economics and Management, Xi’an Technological University, Xi’an 720021, China)

  • Michael Song

    (School of Economics and Management, Xi’an Technological University, Xi’an 720021, China)

Abstract

Literature suggests that big data is a new competitive advantage and that it enhance organizational performance. Yet, previous empirical research has provided conflicting results. Building on the resource-based view and the organizational inertia theory, we develop a model to investigate how big data and big data analytics capability affect innovation success. We show that there is a trade-off between big data and big data analytics capability and that optimal balance of big data depends upon levels of big data analytics capability. We conduct a four-year empirical research project to secure empirical data on 1109 data-driven innovation projects from the United States and China. This research is the first time reporting the empirical results. The study findings reveal several surprising results that challenge traditional views of the importance of big data in innovation. For U.S. innovation projects, big data has an inverted U-shaped relationship with sales growth. Big data analytics capability exerts a positive moderating effect, that is, the stronger this capability is, the greater the impact of big data on sales growth and gross margin. For Chinese innovation projects, when big data resource is low, promoting big data analytics capability increases sales growth and gross margin up to a certain point; developing big data analytics capability beyond that point may actually inhibit innovation performance. Our findings provide guidance to firms on making strategic decisions regarding resource allocations for big data and big data analytics capability.

Suggested Citation

  • Shengbin Hao & Haili Zhang & Michael Song, 2019. "Big Data, Big Data Analytics Capability, and Sustainable Innovation Performance," Sustainability, MDPI, vol. 11(24), pages 1-15, December.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:24:p:7145-:d:297587
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/24/7145/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/24/7145/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chunjia Hu & Haili Zhang & Michael Song & Dapeng Liang, 2019. "Past Performance, Organizational Aspiration, and Organizational Performance: The Moderating Effect of Environmental Jolts," Sustainability, MDPI, vol. 11(15), pages 1-16, August.
    2. Miltiades D. Lytras & Anna Visvizi, 2019. "Big Data and Their Social Impact: Preliminary Study," Sustainability, MDPI, vol. 11(18), pages 1-18, September.
    3. Y. Lisa Zhao & Michael Song & Gregory L. Storm, 2013. "Founding Team Capabilities and New Venture Performance: The Mediating Role of Strategic Positional Advantages," Entrepreneurship Theory and Practice, , vol. 37(4), pages 789-814, July.
    4. Patrick Mikalef & Ilias O. Pappas & John Krogstie & Michail Giannakos, 2018. "Big data analytics capabilities: a systematic literature review and research agenda," Information Systems and e-Business Management, Springer, vol. 16(3), pages 547-578, August.
    5. Sunghae Jun, 2019. "Bayesian Structural Time Series and Regression Modeling for Sustainable Technology Management," Sustainability, MDPI, vol. 11(18), pages 1-12, September.
    6. Feng Hu & Wei Liu & Sang-Bing Tsai & Junbin Gao & Ning Bin & Quan Chen, 2018. "An Empirical Study on Visualizing the Intellectual Structure and Hotspots of Big Data Research from a Sustainable Perspective," Sustainability, MDPI, vol. 10(3), pages 1-19, March.
    7. Akter, Shahriar & Wamba, Samuel Fosso & Gunasekaran, Angappa & Dubey, Rameshwar & Childe, Stephen J., 2016. "How to improve firm performance using big data analytics capability and business strategy alignment?," International Journal of Production Economics, Elsevier, vol. 182(C), pages 113-131.
    8. Lei Xu & Runpeng Gao & Yu Xie & Peng Du, 2019. "To Be or Not to Be? Big Data Business Investment Decision-Making in the Supply Chain," Sustainability, MDPI, vol. 11(8), pages 1-14, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huynh, Minh-Tay & Nippa, Michael & Aichner, Thomas, 2023. "Big data analytics capabilities: Patchwork or progress? A systematic review of the status quo and implications for future research," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    2. Zhengang Zhang & Yu Shang & Linyuan Cheng & Antao Hu, 2022. "Big Data Capability and Sustainable Competitive Advantage: The Mediating Role of Ambidextrous Innovation Strategy," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    3. Haili Zhang & Michael Song & Huanhuan He, 2020. "Achieving the Success of Sustainability Development Projects through Big Data Analytics and Artificial Intelligence Capability," Sustainability, MDPI, vol. 12(3), pages 1-23, January.
    4. S. M. F. D. Syed Mustapha, 2022. "The UAE Employees’ Perceptions towards Factors for Sustaining Big Data Implementation and Continuous Impact on Their Organization’s Performance," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    5. Hua Zhang & Shaofeng Yuan, 2023. "How and When Does Big Data Analytics Capability Boost Innovation Performance?," Sustainability, MDPI, vol. 15(5), pages 1-19, February.
    6. Meng Zhang & Yong Qi, 2023. "Vertical Network Relationships, Technological Capabilities, and Innovation Performance: The Moderating Role of Strategic Flexibility," Sustainability, MDPI, vol. 15(14), pages 1-15, July.
    7. JAHAN Sakila Akter & SAZU Mesbaul Haque, 2022. "Innovation Management: Is Big Data Necessarily Better Data?," Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 14(2), pages 27-33, December.
    8. Yufan Wang & Haili Zhang, 2020. "Achieving Sustainable New Product Development by Implementing Big Data-Embedded New Product Development Process," Sustainability, MDPI, vol. 12(11), pages 1-20, June.
    9. Miloš Arsić & Zoran Jovanović & Radoljub Tomić & Nena Tomović & Siniša Arsić & Ištvan Bodolo, 2020. "Impact of Logistics Capacity on Economic Sustainability of SMEs," Sustainability, MDPI, vol. 12(5), pages 1-30, March.
    10. Xiaoli Wang & Ying Gu & Mahmood Ahmad & Chaokai Xue, 2022. "The Impact of Digital Capability on Manufacturing Company Performance," Sustainability, MDPI, vol. 14(10), pages 1-24, May.
    11. Mihai BOGDAN & Anca BORZA, 2020. "Big Data Analytics And Firm Performance: A Text Mining Approach," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 549-560, November.
    12. Qidi Dong & Jun Cai & Shuo Chen & Pengman He & Xuli Chen, 2022. "Spatiotemporal Analysis of Urban Green Spatial Vitality and the Corresponding Influencing Factors: A Case Study of Chengdu, China," Land, MDPI, vol. 11(10), pages 1-17, October.
    13. Haili Zhang & Yufan Wang & Michael Song, 2019. "Does Competitive Intensity Moderate the Relationships between Sustainable Capabilities and Sustainable Organizational Performance in New Ventures?," Sustainability, MDPI, vol. 12(1), pages 1-18, December.
    14. Guixiang Cao & Xintong Fang & Ying Chen & Jinghuai She, 2023. "Regional Big Data Application Capability and Firm Green Technology Innovation," Sustainability, MDPI, vol. 15(17), pages 1-29, August.
    15. Irina Bogdana Pugna & Dana Maria Boldeanu & Mirela Gheorghe & Gabriel Cozgarea & Adrian Nicolae Cozgarea, 2022. "Management Perspectives towards the Data-Driven Organization in the Energy Sector," Energies, MDPI, vol. 15(16), pages 1-20, August.
    16. Michael Song & Haili Zhang & Jinjin Heng, 2020. "Creating Sustainable Innovativeness through Big Data and Big Data Analytics Capability: From the Perspective of the Information Processing Theory," Sustainability, MDPI, vol. 12(5), pages 1-23, March.
    17. Okharedia Goodheart Akhimien & Simon Ayo Adekunle, 2023. "Technological environment and sustainable performance of oil and gas firms: a structural equation modelling approach," Future Business Journal, Springer, vol. 9(1), pages 1-11, December.
    18. Philipp Korherr & Dominik Kanbach, 2023. "Human-related capabilities in big data analytics: a taxonomy of human factors with impact on firm performance," Review of Managerial Science, Springer, vol. 17(6), pages 1943-1970, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haili Zhang & Michael Song & Huanhuan He, 2020. "Achieving the Success of Sustainability Development Projects through Big Data Analytics and Artificial Intelligence Capability," Sustainability, MDPI, vol. 12(3), pages 1-23, January.
    2. Huynh, Minh-Tay & Nippa, Michael & Aichner, Thomas, 2023. "Big data analytics capabilities: Patchwork or progress? A systematic review of the status quo and implications for future research," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    3. Ahmad Ibrahim Aljumah & Mohammed T. Nuseir & Md. Mahmudul Alam, 2021. "Traditional marketing analytics, big data analytics and big data system quality and the success of new product development," Post-Print hal-03538161, HAL.
    4. Haili Zhang & Yufan Wang & Michael Song, 2019. "Does Competitive Intensity Moderate the Relationships between Sustainable Capabilities and Sustainable Organizational Performance in New Ventures?," Sustainability, MDPI, vol. 12(1), pages 1-18, December.
    5. Li, Lei & Lin, Jiabao & Ouyang, Ye & Luo, Xin (Robert), 2022. "Evaluating the impact of big data analytics usage on the decision-making quality of organizations," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    6. Ashaari, Mohamed Azlan & Singh, Karpal Singh Dara & Abbasi, Ghazanfar Ali & Amran, Azlan & Liebana-Cabanillas, Francisco J., 2021. "Big data analytics capability for improved performance of higher education institutions in the Era of IR 4.0: A multi-analytical SEM & ANN perspective," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    7. Kristoffersen, Eivind & Mikalef, Patrick & Blomsma, Fenna & Li, Jingyue, 2021. "Towards a business analytics capability for the circular economy," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    8. Conboy, Kieran & Mikalef, Patrick & Dennehy, Denis & Krogstie, John, 2020. "Using business analytics to enhance dynamic capabilities in operations research: A case analysis and research agenda," European Journal of Operational Research, Elsevier, vol. 281(3), pages 656-672.
    9. Rajesh Chidananda Reddy & Biplab Bhattacharjee & Debasisha Mishra & Anandadeep Mandal, 2022. "A systematic literature review towards a conceptual framework for enablers and barriers of an enterprise data science strategy," Information Systems and e-Business Management, Springer, vol. 20(1), pages 223-255, March.
    10. Aljumah, Ahmad Ibrahim & Nuseir, Mohammed T. & Alam, Md. Mahmudul, 2021. "Organizational Performance and Capabilities to Analyze Big Data: Do the Ambidexterity and Business Value of Big Data Analytics Matter?," OSF Preprints an8er, Center for Open Science.
    11. Zhu Xiangyu & Yang Yang, 2021. "Big Data Analytics for Improving Financial Performance and Sustainability," Journal of Systems Science and Information, De Gruyter, vol. 9(2), pages 175-191, April.
    12. Alberto Bertello & Alberto Ferraris & Stefano Bresciani & Paola Bernardi, 2021. "Big data analytics (BDA) and degree of internationalization: the interplay between governance of BDA infrastructure and BDA capabilities," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1035-1055, December.
    13. Kristoffersen, Eivind & Mikalef, Patrick & Blomsma, Fenna & Li, Jingyue, 2021. "The effects of business analytics capability on circular economy implementation, resource orchestration capability, and firm performance," International Journal of Production Economics, Elsevier, vol. 239(C).
    14. Ragmoun Wided, 2023. "IT Capabilities, Strategic Flexibility and Organizational Resilience in SMEs Post-COVID-19: A Mediating and Moderating Role of Big Data Analytics Capabilities," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(1), pages 123-142, March.
    15. Akter, Shahriar & Gunasekaran, Angappa & Wamba, Samuel Fosso & Babu, Mujahid Mohiuddin & Hani, Umme, 2020. "Reshaping competitive advantages with analytics capabilities in service systems," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    16. Yufan Wang & Haili Zhang, 2020. "Achieving Sustainable New Product Development by Implementing Big Data-Embedded New Product Development Process," Sustainability, MDPI, vol. 12(11), pages 1-20, June.
    17. Antonio Manuel Ciruela-Lorenzo & Ana Rosa Del-Aguila-Obra & Antonio Padilla-Meléndez & Juan José Plaza-Angulo, 2020. "Digitalization of Agri-Cooperatives in the Smart Agriculture Context. Proposal of a Digital Diagnosis Tool," Sustainability, MDPI, vol. 12(4), pages 1-15, February.
    18. Michael Song & Haili Zhang & Jinjin Heng, 2020. "Creating Sustainable Innovativeness through Big Data and Big Data Analytics Capability: From the Perspective of the Information Processing Theory," Sustainability, MDPI, vol. 12(5), pages 1-23, March.
    19. Tugba Karaboga & Cemal Zehir & Ekrem Tatoglu & H. Aykut Karaboga & Abderaouf Bouguerra, 2023. "Big data analytics management capability and firm performance: the mediating role of data-driven culture," Review of Managerial Science, Springer, vol. 17(8), pages 2655-2684, November.
    20. Tabesh, Pooya & Mousavidin, Elham & Hasani, Sona, 2019. "Implementing big data strategies: A managerial perspective," Business Horizons, Elsevier, vol. 62(3), pages 347-358.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:24:p:7145-:d:297587. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.