The performance effects of big data analytics and supply chain ambidexterity: The moderating effect of environmental dynamism

Abstract

The importance of big data analytics–enabled dynamic capability has been at the forefront of research for information systems management, operations management, and strategic management community. Prior studies have reported on the influence of big data analytics–enabled dynamic capability (BDA) for improved organizational agility and organizational performance, but there has been a paucity of literature regarding the role of big data analytics–enabled dynamic capability in untangling the supply chain ambidexterity dilemma and organizational performance. To address these research gaps, this paper draws on the dynamic capability view of the organization under the contingent effect of environmental dynamism. We tested our research hypotheses using 281 surveys, gathered using a pre-tested questionnaire. Our results suggest that BDA has positive effects on improving supply chain agility (SCAG), supply chain adaptability (SCAD) and performance measures (cost performance and operational performance). However, we noted that hypotheses regarding the moderating effect of environmental dynamism (ED) on the paths joining BDA and SCAG/SCAD were not supported. To address these unexpected results, we conducted post hoc analysis to explain the rationale behind the insignificant moderating effects of ED on the paths joining BDA and SCAG/SCAD. We found that the effects of BDA on SCAG/SCAD were higher under intermediate levels of environmental dynamism but comparatively weak when the environmental dynamism is low or high. Hence, we can argue that big data analytics can help enhance supply chain agility, supply chain adaptability, and organizational performance, but these effects are contingent upon the level of environmental dynamism. Moreover, a non-linear, inverse U-shaped moderating effect of environmental dynamism exists. Collectively, these findings provide a theory-based understanding of the organizational level of usage of big data analytics and its effects on supply chain agility, supply chain adaptability, and organizational performance. Moreover, they further shape our understanding of how big data analytics–enabled dynamic capabilities yield differential results under the moderating effect of environmental dynamism. Hence, we believe that our results will be useful for managers who are highly optimistic about the usage of these emerging technologies and their effects on supply chain characteristics. Finally, we have outlined our study limitations and offered numerous research directions.