Understanding the impact of business analytics on innovation

2.50
Hdl Handle:
http://hdl.handle.net/10547/622810
Title:
Understanding the impact of business analytics on innovation
Authors:
Duan, Yanqing ( 0000-0003-4205-7403 ) ; Cao, Guangming; Edwards, John S. ( 0000-0003-3979-017X )
Abstract:
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.
Affiliation:
University of Bedfordshire; Aston University
Citation:
Duan Y, Cao G, Edwards JS (2018) 'Understanding the impact of business analytics on innovation', European Journal of Operational Research, (), pp.-.
Publisher:
Elsevier
Journal:
European Journal of Operational Research
Issue Date:
20-Jun-2018
URI:
http://hdl.handle.net/10547/622810
DOI:
10.1016/j.ejor.2018.06.021
Additional Links:
https://www.sciencedirect.com/science/article/abs/pii/S0377221718305447
Type:
Article
Language:
en
ISSN:
0377-2217
Appears in Collections:
Business and management

Full metadata record

DC FieldValue Language
dc.contributor.authorDuan, Yanqingen
dc.contributor.authorCao, Guangmingen
dc.contributor.authorEdwards, John S.en
dc.date.accessioned2018-08-07T10:34:24Z-
dc.date.available2018-08-07T10:34:24Z-
dc.date.issued2018-06-20-
dc.identifier.citationDuan Y, Cao G, Edwards JS (2018) 'Understanding the impact of business analytics on innovation', European Journal of Operational Research, (), pp.-.en
dc.identifier.issn0377-2217-
dc.identifier.doi10.1016/j.ejor.2018.06.021-
dc.identifier.urihttp://hdl.handle.net/10547/622810-
dc.description.abstractAdvances 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.en
dc.language.isoenen
dc.publisherElsevieren
dc.relation.urlhttps://www.sciencedirect.com/science/article/abs/pii/S0377221718305447en
dc.rightsGreen - can archive pre-print and post-print or publisher's version/PDF-
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/*
dc.subjectbusiness analyticsen
dc.subjectanalyticsen
dc.subjectabsorptive capacityen
dc.subjectdata-driven cultureen
dc.subjectbig dataen
dc.subjectinnovationen
dc.subjectN100 Business studiesen
dc.titleUnderstanding the impact of business analytics on innovationen
dc.typeArticleen
dc.contributor.departmentUniversity of Bedfordshireen
dc.contributor.departmentAston Universityen
dc.identifier.journalEuropean Journal of Operational Researchen
dc.date.updated2018-08-07T09:23:30Z-
dc.description.note24month embargo-
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