Innovation Performance Fosters Strategy Development: Evidenced in the Case of New Product Development and Big Data Capability

Abstract

Research has consistently sought empirical evidence showing the benefits of developing big data related dynamic capabilities as a way to strategize big data operations, but done little exploration of what contributes to the development of such capabilities. To fill this gap, this study proposes that firm innovation performance measured in new product development drives the development of big data strategy reified in big data capability. It then draws on multiple theoretical traditions to build a research model that conceptualizes new product development as a key motivator behind firms’ development of big data capability and two supply chain capabilities as its enhancement. Survey data was collected and analyzed to test the hypotheses that constitute the research model. The paper concludes with a discussion of contributions to theory and research as well as practical implications of the findings.