Big Data Capability and Sustainable Competitive Advantage: The Mediating Role of Ambidextrous Innovation Strategy

Abstract

After the rapid expansion of data variety, velocity and volume, human civilization experienced rapid changes in the period between the “IT” and “Data” ages. Researchers view big data and data capability as new sustainable competitive advantages that enhance the sustainability of organizational development. This paper aims to develop and empirically test a framework that will investigate how big data capability is achieved through exploitative, explorative and ambidextrous modes of innovation strategies, and will also explore how they can, in turn, build firms’ sustainable competitive advantage. Using data from surveys of 229 respondents working in Chinese manufacturing firms, we test the framework using regression and bootstrapped mediation analyses. It also shows how big data capability will make firms more inclined to implement exploitative innovation strategy and construct sustainable competitive advantage, as opposed to explorative innovation strategy; when viewed from an ambidextrous perspective, combined dimension of ambidextrous innovation strategy is found to partially mediate between big data capability and sustainable competitive advantage while balanced dimension of ambidextrous innovation strategy does not. The conclusions are of great significance because they will help firms to deal with challenges that arise in big data applications and digital transformation. The findings offer new insight into the strategic choices of organizational innovations.

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