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

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.