IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v179y2022ics0040162522001974.html
   My bibliography  Save this article

An ambidextrous approach on the business analytics-competitive advantage relationship: Exploring the moderating role of business analytics strategy

Author

Listed:
  • Ashrafi, Amir
  • Zareravasan, Ahad

Abstract

This study aims to develop a theoretical framework to understand how the Business Analytics (BA) strategy moderates the relationship between BA and competitive advantage through innovative ambidexterity. Theorizing from the Dynamic Capability (DC) perspective, we develop a model to investigate how different BA (descriptive, predictive, prescriptive) influence innovative ambidexterity (exploration and exploitation) and competitive advantage. Besides, we propose the construct of “BA strategy” (innovator, conservative, undefined) to differentiate between firms in the way they adopt, use, and implement BA. Based on the PLS analysis of the 181 firm-level survey data, we assess the proposed model. The results show that innovative ambidexterity fully mediates the BA – competitive advantage relationship. We also find that BA innovator and conservative strategy moderate the BA-exploration and BA-exploitation links while such moderation is not observed for BA undefined strategy. This study enriches BA literature in various ways. First, it extends our understanding of the link from different BA categories to innovative ambidexterity, explorative innovation, and exploitative innovation. Second, this study provides empirical support of how BA strategy moderates BA – innovative ambidexterity – competitive advantage relationship and shows that to what degree BA innovator strategy leads firms to greater competitive advantage than BA conservative strategy.

Suggested Citation

  • Ashrafi, Amir & Zareravasan, Ahad, 2022. "An ambidextrous approach on the business analytics-competitive advantage relationship: Exploring the moderating role of business analytics strategy," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    • Handle: RePEc:eee:tefoso:v:179:y:2022:i:c:s0040162522001974
    DOI: 10.1016/j.techfore.2022.121665
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162522001974
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2022.121665?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. One-Ki (Daniel) Lee & Vallabh Sambamurthy & Kai H. Lim & Kwok Kee Wei, 2015. "How Does IT Ambidexterity Impact Organizational Agility?," Information Systems Research, INFORMS, vol. 26(2), pages 398-417, June.
    2. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    3. Sivarajah, Uthayasankar & Kamal, Muhammad Mustafa & Irani, Zahir & Weerakkody, Vishanth, 2017. "Critical analysis of Big Data challenges and analytical methods," Journal of Business Research, Elsevier, vol. 70(C), pages 263-286.
    4. 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.
    5. Rialti, Riccardo & Zollo, Lamberto & Ferraris, Alberto & Alon, Ilan, 2019. "Big data analytics capabilities and performance: Evidence from a moderated multi-mediation model," Technological Forecasting and Social Change, Elsevier, vol. 149(C).
    6. Robert M. Grant, 1996. "Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration," Organization Science, INFORMS, vol. 7(4), pages 375-387, August.
    7. Janssen, Marijn & van der Voort, Haiko & Wahyudi, Agung, 2017. "Factors influencing big data decision-making quality," Journal of Business Research, Elsevier, vol. 70(C), pages 338-345.
    8. Jose Benitez & Ana Castillo & Javier Llorens & Jessica Braojos, 2018. "IT-enabled knowledge ambidexterity and innovation performance in small U.S. firms: The moderator role of social media capability," Post-Print hal-01998044, HAL.
    9. Ashrafi, Amir & Zare Ravasan, Ahad & Trkman, Peter & Afshari, Samira, 2019. "The role of business analytics capabilities in bolstering firms’ agility and performance," International Journal of Information Management, Elsevier, vol. 47(C), pages 1-15.
    10. Ghasemaghaei, Maryam & Calic, Goran, 2019. "Does big data enhance firm innovation competency? The mediating role of data-driven insights," Journal of Business Research, Elsevier, vol. 104(C), pages 69-84.
    11. Duan, Yanqing & Cao, Guangming & Edwards, John S., 2020. "Understanding the impact of business analytics on innovation," European Journal of Operational Research, Elsevier, vol. 281(3), pages 673-686.
    12. Aydiner, Arafat Salih & Tatoglu, Ekrem & Bayraktar, Erkan & Zaim, Selim & Delen, Dursun, 2019. "Business analytics and firm performance: The mediating role of business process performance," Journal of Business Research, Elsevier, vol. 96(C), pages 228-237.
    13. Martin Kunc & Frances A. O’Brien, 2019. "The role of business analytics in supporting strategy processes: Opportunities and limitations," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 70(6), pages 974-985, June.
    14. Qing Cao & Eric Gedajlovic & Hongping Zhang, 2009. "Unpacking Organizational Ambidexterity: Dimensions, Contingencies, and Synergistic Effects," Organization Science, INFORMS, vol. 20(4), pages 781-796, August.
    15. Wamba, Samuel Fosso & Gunasekaran, Angappa & Akter, Shahriar & Ren, Steven Ji-fan & Dubey, Rameshwar & Childe, Stephen J., 2017. "Big data analytics and firm performance: Effects of dynamic capabilities," Journal of Business Research, Elsevier, vol. 70(C), pages 356-365.
    16. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    17. Jon Hartwick & Henri Barki, 1994. "Explaining the Role of User Participation in Information System Use," Management Science, INFORMS, vol. 40(4), pages 440-465, April.
    18. Justin J. P. Jansen & Michiel P. Tempelaar & Frans A. J. van den Bosch & Henk W. Volberda, 2009. "Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms," Organization Science, INFORMS, vol. 20(4), pages 797-811, August.
    19. Zi-Lin He & Poh-Kam Wong, 2004. "Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis," Organization Science, INFORMS, vol. 15(4), pages 481-494, August.
    20. Larson, Deanne & Chang, Victor, 2016. "A review and future direction of agile, business intelligence, analytics and data science," International Journal of Information Management, Elsevier, vol. 36(5), pages 700-710.
    21. O'Reilly, Charles A., III & Tushman, Michael L., 2013. "Organizational Ambidexterity: Past, Present and Future," Research Papers 2130, Stanford University, Graduate School of Business.
    22. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    23. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    24. Benjamin T. Hazen & Joseph B. Skipper & Christopher A. Boone & Raymond R. Hill, 2018. "Back in business: operations research in support of big data analytics for operations and supply chain management," Annals of Operations Research, Springer, vol. 270(1), pages 201-211, November.
    25. Hüseyin Tanriverdi & Arun Rai & N. Venkatraman, 2010. "Research Commentary ---Reframing the Dominant Quests of Information Systems Strategy Research for Complex Adaptive Business Systems," Information Systems Research, INFORMS, vol. 21(4), pages 822-834, December.
    26. Akter, Shahriar & Bandara, Ruwan & Hani, Umme & Fosso Wamba, Samuel & Foropon, Cyril & Papadopoulos, Thanos, 2019. "Analytics-based decision-making for service systems: A qualitative study and agenda for future research," International Journal of Information Management, Elsevier, vol. 48(C), pages 85-95.
    27. Stav Fainshmidt & Amir Pezeshkan & M. Lance Frazier & Anil Nair & Edward Markowski, 2016. "Dynamic Capabilities and Organizational Performance: A Meta-Analytic Evaluation and Extension," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1348-1380, December.
    28. David S. Preston & Elena Karahanna, 2009. "Antecedents of IS Strategic Alignment: A Nomological Network," Information Systems Research, INFORMS, vol. 20(2), pages 159-179, June.
    29. Tan, Kim Hua & Zhan, YuanZhu & Ji, Guojun & Ye, Fei & Chang, Chingter, 2015. "Harvesting big data to enhance supply chain innovation capabilities: An analytic infrastructure based on deduction graph," International Journal of Production Economics, Elsevier, vol. 165(C), pages 223-233.
    30. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    31. 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.
    32. Chen, Yan, 2017. "Dynamic ambidexterity: How innovators manage exploration and exploitation," Business Horizons, Elsevier, vol. 60(3), pages 385-394.
    33. Appelbaum, Deniz & Kogan, Alexander & Vasarhelyi, Miklos & Yan, Zhaokai, 2017. "Impact of business analytics and enterprise systems on managerial accounting," International Journal of Accounting Information Systems, Elsevier, vol. 25(C), pages 29-44.
    34. Martinez-Simarro, David & Devece, Carlos & Llopis-Albert, Carlos, 2015. "How information systems strategy moderates the relationship between business strategy and performance," Journal of Business Research, Elsevier, vol. 68(7), pages 1592-1594.
    Full references (including those not matched with items on IDEAS)

    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. Osama Musa Ali Al-Darras & Cem Tanova, 2022. "From Big Data Analytics to Organizational Agility: What Is the Mechanism?," SAGE Open, , vol. 12(2), pages 21582440221, June.
    2. Ghasemaghaei, Maryam & Calic, Goran, 2019. "Does big data enhance firm innovation competency? The mediating role of data-driven insights," Journal of Business Research, Elsevier, vol. 104(C), pages 69-84.
    3. José Andrade & Mário Franco & Luis Mendes, 2021. "Technological capacity and organisational ambidexterity: the moderating role of environmental dynamism on Portuguese technological SMEs," Review of Managerial Science, Springer, vol. 15(7), pages 2111-2136, October.
    4. Veider, Viktoria & Matzler, Kurt, 2016. "The ability and willingness of family-controlled firms to arrive at organizational ambidexterity," Journal of Family Business Strategy, Elsevier, vol. 7(2), pages 105-116.
    5. YoungKi Park & Paul A. Pavlou & Nilesh Saraf, 2020. "Configurations for Achieving Organizational Ambidexterity with Digitization," Information Systems Research, INFORMS, vol. 31(4), pages 1376-1397, December.
    6. Shamim, Saqib & Zeng, Jing & Shafi Choksy, Umair & Shariq, Syed Muhammad, 2020. "Connecting big data management capabilities with employee ambidexterity in Chinese multinational enterprises through the mediation of big data value creation at the employee level," International Business Review, Elsevier, vol. 29(6).
    7. Andreea N. Kiss & Dirk Libaers & Pamela S. Barr & Tang Wang & Miles A. Zachary, 2020. "CEO cognitive flexibility, information search, and organizational ambidexterity," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2200-2233, December.
    8. Katou, Anastasia A. & Budhwar, Pawan S. & Patel, Charmi, 2021. "A trilogy of organizational ambidexterity: Leader’s social intelligence, employee work engagement and environmental changes," Journal of Business Research, Elsevier, vol. 128(C), pages 688-700.
    9. Liedong, Tahiru Azaaviele & Rajwani, Tazeeb & Lawton, Thomas C., 2020. "Information and nonmarket strategy: Conceptualizing the interrelationship between big data and corporate political activity," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    10. François Constant & Richard Calvi & Thomas Johnsen, 2020. "Managing tensions between exploitative and exploratory innovation through purchasing function ambidexterity Managing tensions between exploitative and exploratory innovation through purchasing functio," Post-Print hal-02891790, HAL.
    11. Yuan, Chun & Xue, Doudou & He, Xin, 2021. "A balancing strategy for ambidextrous learning, dynamic capabilities, and business model design, the opposite moderating effects of environmental dynamism," Technovation, Elsevier, vol. 103(C).
    12. Dubey, Rameshwar & Gunasekaran, Angappa & Childe, Stephen J. & Bryde, David J. & Giannakis, Mihalis & Foropon, Cyril & Roubaud, David & Hazen, Benjamin T., 2020. "Big data analytics and artificial intelligence pathway to operational performance under the effects of entrepreneurial orientation and environmental dynamism: A study of manufacturing organisations," International Journal of Production Economics, Elsevier, vol. 226(C).
    13. Erkan Bayraktar & Ekrem Tatoglu & Arafat Salih Aydiner & Dursun Delen, 2024. "Business Analytics Adoption and Technological Intensity: An Efficiency Analysis," Information Systems Frontiers, Springer, vol. 26(4), pages 1509-1526, August.
    14. Alexander Linhart & Maximilian Röglinger & Katharina Stelzl, 2020. "A Project Portfolio Management Approach to Tackling the Exploration/Exploitation Trade-off," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(2), pages 103-119, April.
    15. Sebastian Raisch & Julian Birkinshaw & Gilbert Probst & Michael L. Tushman, 2009. "Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance," Organization Science, INFORMS, vol. 20(4), pages 685-695, August.
    16. Lysander Weiss & Dominik Kanbach, 2022. "Toward an integrated framework of corporate venturing for organizational ambidexterity as a dynamic capability," Management Review Quarterly, Springer, vol. 72(4), pages 1129-1170, December.
    17. Ho, Hillbun & Osiyevskyy, Oleksiy & Agarwal, James & Reza, Sadat, 2020. "Does ambidexterity in marketing pay off? The role of absorptive capacity," Journal of Business Research, Elsevier, vol. 110(C), pages 65-79.
    18. Xinwei Ye & Lei Ma & Junwen Feng & Yang Cheng & Zheng Liu, 2018. "Impact of Technology Habitual Domain on Ambidextrous Innovation: Case Study of a Chinese High-Tech Enterprise," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    19. Ferreira, Jorge & Coelho, Arnaldo & Moutinho, Luiz, 2020. "Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation," Technovation, Elsevier, vol. 92.
    20. Lee, Neil Chueh-An, 2021. "Reconciling integration and reconfiguration management approaches in the supply chain," International Journal of Production Economics, Elsevier, vol. 242(C).

    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:eee:tefoso:v:179:y:2022:i:c:s0040162522001974. 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: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    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.