Linking business intelligence with the performance of new service products: Insight from a dynamic capabilities perspective

Abstract

There are ongoing predictions that business intelligence (BI) capabilities will lead to the improved performance of new service products (NSPs). However, theoretical and empirical research have yet to explain the nature of this contribution. Based on dynamic capability theory, the current research suggests a model explaining how BI capabilities could impact the performance of NSPs. Specifically, it suggests that BI capabilities could lead to better NSP performance by facilitating proximal conditions of NSP, including customer value anticipation capacity, NSP innovativeness capacity and new product speed to market capacity. The results, based on responses by 583 service firms’ marketing and sales directors, indicated that benefits from BI capabilities could be realised indirectly via their intermediate impact on proximal conditions, which in turn influence the outcome of the impact of variables on NSP performance. The contribution of this research is a better theoretical understanding and advanced managerial insight into practices on the use of BI as a tool to enhance NSP performance instead of relying on the prevailing anecdotal evidence.