IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i6p5522-d1103251.html
   My bibliography  Save this article

Innovation Capabilities as a Mediator between Business Analytics and Firm Performance

Author

Listed:
  • Thamir Hamad Alaskar

    (Business Administration Department, College of Economics and Administrative Sciences, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11564, Saudi Arabia)

Abstract

Although business analytics (BA) play an important role in improving firm performance, various firms struggle to deliver their full benefits. Many researchers have investigated the capabilities required to achieve better value through BA, but none have addressed the impact of innovation capabilities as a contextual variable mediating the effects on firm performance. By adopting the Technology-Organization-Environment (TOE) framework, this study suggests a model to evaluate the impact of BA capabilities on firm performance and addresses the mediating role of innovation capabilities. A quantitative approach was adopted for data collection and analysis. Based on 386 surveys of BA experts at Saudi Arabian firms and the use of PLS-SEM to test and validate the model. The results show that organizational factors have a highly significant impact on firm performance. While IT infrastructure and information quality as technological factors showed no significant and positive effect. Furthermore, the findings revealed that innovation capabilities positively mediate the link between IT infrastructure and information quality and firm performance as it affects directly and indirectly firm performance. The findings of this study contribute to the literature by addressing the research gap in BA in the Saudi Arabia context. Moreover, the study result stressing about the role of innovation capabilities on the BA capabilities and the importance of considering the interaction between TOE factors. However, research was carried out within one developing country (Saudi Arabia), which might restrict the findings’ generalizability of the study, and the results must be generalized with care to avoid issues such as structural and cultural variances between developed and developing countries.

Suggested Citation

  • Thamir Hamad Alaskar, 2023. "Innovation Capabilities as a Mediator between Business Analytics and Firm Performance," Sustainability, MDPI, vol. 15(6), pages 1-20, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:6:p:5522-:d:1103251
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/6/5522/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/6/5522/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lei Wang & Mengke Yang & Zulfiqar Hussain Pathan & Shafaq Salam & Khuram Shahzad & Jianqiu Zeng, 2018. "Analysis of Influencing Factors of Big Data Adoption in Chinese Enterprises Using DANP Technique," Sustainability, MDPI, vol. 10(11), pages 1-16, October.
    2. Surabhi Verma & Sushil Chaurasia, 2019. "Understanding the Determinants of Big Data Analytics Adoption," Information Resources Management Journal (IRMJ), IGI Global, vol. 32(3), pages 1-26, July.
    3. William Yeoh & Aleš Popovič, 2016. "Extending the understanding of critical success factors for implementing business intelligence systems," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 67(1), pages 134-147, January.
    4. Robert G. Fichman, 2004. "Real Options and IT Platform Adoption: Implications for Theory and Practice," Information Systems Research, INFORMS, vol. 15(2), pages 132-154, June.
    5. Alharthi, Abdulkhaliq & Krotov, Vlad & Bowman, Michael, 2017. "Addressing barriers to big data," Business Horizons, Elsevier, vol. 60(3), pages 285-292.
    6. Hemlata Gangwar, 2018. "Understanding the Determinants of Big Data Adoption in India: An Analysis of the Manufacturing and Services Sectors," Information Resources Management Journal (IRMJ), IGI Global, vol. 31(4), pages 1-22, October.
    7. One-Ki (Daniel) Lee & Mo (Winnie) Wang & Kai H. Lim & Zeyu (Jerry) Peng, 2009. "Knowledge Management Systems Diffusion in Chinese Enterprises: A Multistage Approach Using the Technology-Organization-Environment Framework," Journal of Global Information Management (JGIM), IGI Global, vol. 17(1), pages 70-84, January.
    8. Shirley Taylor & Peter A. Todd, 1995. "Understanding Information Technology Usage: A Test of Competing Models," Information Systems Research, INFORMS, vol. 6(2), pages 144-176, June.
    9. Michael O’Neill & Anthony Brabazon, 2019. "Business analytics capability, organisational value and competitive advantage," Journal of Business Analytics, Taylor & Francis Journals, vol. 2(2), pages 160-173, July.
    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. B. Senakumari Arunnima & Dharmaseelan Bijulal & R. Sudhir Kumar, 2023. "Open Innovation Intellectual Property Risk Maturity Model: An Approach to Measure Intellectual Property Risks of Software Firms Engaged in Open Innovation," Sustainability, MDPI, vol. 15(14), pages 1-19, July.
    2. Bo Zeng & Weimin Zhang & Defang Ma & Chenyang Zhang & Xiao Liu, 2023. "The Impact of Group Control on the Effectiveness of Enterprise Innovation: An Empirical Study," Sustainability, MDPI, vol. 15(13), pages 1-15, July.

    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. Luther Yuong Qai Chong & Thien Sang Lim, 2022. "Pull and Push Factors of Data Analytics Adoption and Its Mediating Role on Operational Performance," Sustainability, MDPI, vol. 14(12), pages 1-19, June.
    2. Lei, Zhimei & Chen, Yandan & Lim, Ming K., 2021. "Modelling and analysis of big data platform group adoption behaviour based on social network analysis," Technology in Society, Elsevier, vol. 65(C).
    3. Luay Jum’a & Muhammad Ikram & Ziad Alkalha & Maher Alaraj, 2022. "Do Companies Adopt Big Data as Determinants of Sustainability: Evidence from Manufacturing Companies in Jordan," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(4), pages 479-494, December.
    4. Ebrahim A. A. Ghaleb & P. D. D. Dominic & Suliman Mohamed Fati & Amgad Muneer & Rao Faizan Ali, 2021. "The Assessment of Big Data Adoption Readiness with a Technology–Organization–Environment Framework: A Perspective towards Healthcare Employees," Sustainability, MDPI, vol. 13(15), pages 1-33, July.
    5. Thamir Hamad Alaskar & Amin K. Alsadi, 2023. "Drivers of mobile commerce adoption intention by Saudi SMEs during the COVID-19 pandemic," Future Business Journal, Springer, vol. 9(1), pages 1-13, December.
    6. Tabesh, Pooya & Mousavidin, Elham & Hasani, Sona, 2019. "Implementing big data strategies: A managerial perspective," Business Horizons, Elsevier, vol. 62(3), pages 347-358.
    7. Francisco Liébana-Cabanillas & Nidhi Singh & Zoran Kalinic & Elena Carvajal-Trujillo, 2021. "Examining the determinants of continuance intention to use and the moderating effect of the gender and age of users of NFC mobile payments: a multi-analytical approach," Information Technology and Management, Springer, vol. 22(2), pages 133-161, June.
    8. Pan, Jing Yu & Liu, Dahai, 2022. "Mask-wearing intentions on airplanes during COVID-19 – Application of theory of planned behavior model," Transport Policy, Elsevier, vol. 119(C), pages 32-44.
    9. Hasan, Rajibul & Lowe, Ben & Petrovici, Dan, 2020. "Consumer adoption of pro-poor service innovations in subsistence marketplaces," Journal of Business Research, Elsevier, vol. 121(C), pages 461-475.
    10. Paul-Emmanuel Pichon & Denis Bories & Christian Laborde, 2023. "The determinants of the adoption of cryptocurrencies in the tourism industry : Application to the case of hotel room reservations [Les déterminants de l'adoption des cryptomonnaies : application au," Post-Print hal-04398288, HAL.
    11. Joey F George & Rui Chen & Lingyao Yuan, 2021. "Intent to purchase IoT home security devices: Fear vs privacy," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-14, September.
    12. Paul Juinn Bing Tan, 2013. "Applying the UTAUT to Understand Factors Affecting the Use of English E-Learning Websites in Taiwan," SAGE Open, , vol. 3(4), pages 21582440135, October.
    13. Chen, Shih-Chih & Hung, Chung-Wen, 2016. "Elucidating the factors influencing the acceptance of green products: An extension of theory of planned behavior," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 155-163.
    14. Chuhan Chen & Syarmila Hany Haron, 2023. "The Influence of Multistakeholder Value Cognition and Risk Attitudes on Sustainable Interior Landscape Design Decisions," Sustainability, MDPI, vol. 15(3), pages 1-22, February.
    15. Hoon S. Choi & Darrell Carpenter & Myung S. Ko, 2022. "Risk Taking Behaviors Using Public Wi-Fi™," Information Systems Frontiers, Springer, vol. 24(3), pages 965-982, June.
    16. Venkatesh, Viswanath & Maruping, Likoebe M. & Brown, Susan A., 2006. "Role of time in self-prediction of behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 100(2), pages 160-176, July.
    17. Garima Malik & A. Sajeevan Rao, 2019. "Extended expectation-confirmation model to predict continued usage of ODR/ride hailing apps: role of perceived value and self-efficacy," Information Technology & Tourism, Springer, vol. 21(4), pages 461-482, December.
    18. Borhan, Muhamad Nazri & Ibrahim, Ahmad Nazrul Hakimi & Miskeen, Manssour A. Abdulasalm, 2019. "Extending the theory of planned behaviour to predict the intention to take the new high-speed rail for intercity travel in Libya: Assessment of the influence of novelty seeking, trust and external inf," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 373-384.
    19. Javad Shahreki & Jaya Ganesan & Kavitha Raman & Audrey Lim Li Chin & Tee Suan Chin, 2019. "The effect of human resource information system application on employee satisfaction and turnover intention," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(2), pages 1462-1479, December.
    20. Lukas Auer, 2013. "SOA investment decision-making using real options analysis," International Journal of Services, Economics and Management, Inderscience Enterprises Ltd, vol. 5(1/2), pages 21-40.

    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:15:y:2023:i:6:p:5522-:d:1103251. 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.