Examining the interplay between big data analytics and contextual factors in driving process innovation capabilities

Figures & data

Figure 1. Research framework of configurations for driving process innovation capabilities.

Table 1. Sample characteristics.

Factors	Sample (N = 202)	Proportion (%)
Industry
Bank & Financials	28	13.8
Consumer Goods	22	10.8
Oil & Gas	21	10.4
Industrials (Construction & Industrial goods)	19	9.4
ICT and Telecommunications	11	5.4
Technology	9	4.4
Media	9	4.4
Transport	8	3.9
Other (Shipping, Consumer Services etc.)	75	37.1
Firm size (Number of employees)
1–9	1	0.5
10–49	34	16.8
50–249	36	17.8
250+	131	64.8
Total Big Data Analytics Experience
< 1 year	42	20.7
1–2 years	49	24.2
2–3 years	53	26.2
3–4 years	36	17.8
4+ years	22	10.8
Age of Company
< 1 year	0	0.0
1–4 years	5	2.4
5–9 years	16	7.9
10–49 years	92	45.5
50+ years	89	44.0
Respondent’s position
CEO/President	15	7.4
CIO	73	36.1
Head of Digital Strategy	42	20.8
Senior Vice President	33	16.3
IT Director	21	10.4
IT Manager	18	8.9

Table 2. Assessment of reliability, convergent, and discriminant validity.

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)
(1) Data	n/a
(2) Basic Resources	0.288	n/a
(3) Technology	0.571	0.243	n/a
(4) Managerial Skills	0.561	0.427	0.370	0.875
(5) Technical Skills	0.470	0.487	0.307	0.576	0.947
(6) Data-driven Culture	0.269	0.322	0.222	0.307	0.343	0.811
(7) Organisational Learning	0.529	0.365	0.384	0.513	0.376	0.356	0.885
(8) Dynamism	0.217	0.276	0.296	0.286	0.225	0.384	0.346	0.796
(9) Heterogeneity	0.277	0.222	0.255	0.438	0.310	0.278	0.421	0.485	0.849
(10) Hostility	0.303	0.274	0.213	0.442	0.402	0.351	0.358	0.543	0.499	0.802
(11) Incremental Process Innovation Capability	0.194	0.193	0.105	0.233	0.241	0.326	0.184	0.362	0.293	0.251	0.789
(12) Radical Process Innovation Capability	0.351	0.433	0.351	0.339	0.348	0.346	0.363	0.374	0.401	0.282	0.441	0.803
Mean	4.62	4.16	4.21	4.39	4.24	4.45	4.71	4.12	3.94	4.01	4.43	4.25
Standard Deviation	1.80	1.72	2.01	1.64	1.71	1.53	1.41	1.45	1.39	1.43	1.48	1.54
AVE	n/a	n/a	n/a	0.77	0.90	0.66	0.78	0.63	0.72	0.64	0.62	0.64
Cronbach’s Alpha	n/a	n/a	n/a	0.85	0.88	0.74	0.72	0.72	0.79	0.85	0.75	0.79
Composite Reliability	n/a	n/a	n/a	0.91	0.95	0.85	0.88	0.84	0.88	0.88	0.80	0.87

Table 3. Higher-order construct validation.

Construct	Measures	Weight	Significance	VIF	R^2a
Data	D1	0.532	p< 0.001	1.164	0.78
	D2	0.327	p< 0.01	1.631
	D3	0.570	p< 0.001	1.608
Basic Resources	BR1	0.688	p< 0.001	2.137	0.73
	BR2	0.415	n.s.	2.260
Technology	T1	0.299	p< 0.01	2.011	0.74
	T2	0.485	p< 0.001	1.552
	T3	0.427	p < 0.01	2.032

Table 4. Configurations for high incremental and radical process innovation capabilities.

	Solution
	Incremental process innovation capability					Radical Process Innovation Capability
Configuration	1	2a	2b	3a	3b	1	2	3a	3b
Big data analytics resources
Data	●	●	●	●	●	●	●	●	●
Technology	●	●		●		●		●
Basic resources	ⓧ	●	●	●	●	●	●
Technical skills	●	●	●	●	●	●		●	●
Managerial skills	ⓧ	●	ⓧ	●		●	●	●	●
Organisational learning			●		●	ⓧ	●		●
Data-driven culture	ⓧ		●		●	ⓧ	●	●	●
Environment
Dynamism	ⓧ	●	●	●	●	ⓧ	●	●	●
Heterogeneity	●	ⓧ		●	●	●	ⓧ	ⓧ
Hostility	ⓧ		ⓧ	ⓧ		●	●	ⓧ	●
Organisational Factors
Large firms	●	ⓧ	ⓧ	●	●	●	●
SME’s								●	●
Product industry	●					●
Service industry		●	●	●	●		●	●	●
Consistency	0.87	0.88	0.88	0.93	0.93	0.91	0.83	0.82	0.82
Raw coverage	0.24	0.20	0.17	0.16	0.16	0.24	0.19	0.15	0.15
Unique coverage	0.21	0.08	0.05	0.07	0.04	0.18	0.12	0.07	0.03
Overall solution consistency	0.83					0.83
Overall solution coverage	0.48					0.43

Table 5. Configurations for very high incremental and radical process innovation capabilities.

	Solution
	Incremental process innovation capability		Radical Process Innovation Capability
Configuration	1a	1b	1
Big data analytics rResources
Data	●	●	●
Technology
Basic resources		●
Technical skills	●	●	●
Managerial skills	●	●	●
Organisational learning	●	●	●
Data-driven culture	●		●
Environment
Dynamism	●		●
Heterogeneity	●	●	●
Hostility	ⓧ	●	ⓧ
Organisational Factors
Large firms	●	●	●
SME’s
Product industry
Service industry	●	●
Consistency	0.91	0.91	0.90
Raw coverage	0.15	0.19	0.18
Unique coverage	0.05	0.06	0.08
Overall solution consistency		0.89	0.90
Overall solution coverage		0.24	0.22

Table

Measure	Item	Mean	S.D.
Big data analytics capability
Tangible
Data	D1. We have access to very large, unstructured, or fast-moving data for analysis	4.91	1.74
	D2. We integrate data from multiple sources into a data warehouse for easy access	5.05	1.76
	D3. We integrate external data with internal to facilitate analysis of our business environment	4.01	1.80
Basic resources	BR1. Our “big data analytics” projects are adequately funded	4.13	1.77
	BR2. Our “big data analytics” projects are given enough time to achieve their objectives	4.01	1.62
Technology	T1. We have explored or adopted parallel computing approaches (e.g., Hadoop) to big data processing	3.69	2.12
	T2. We have explored or adopted different data visualisation tools	4.81	1.85
	T3. We have explored or adopted new forms of databases such as Not Only SQL(NoSQL)	4.17	2.13
Human skills
Managerial skills	MS1. Our BDA managers are able to understand the business need of other functional managers, suppliers, and customers to determine opportunities that big data might bring to our business.	4.40	1.65
	MS2. Our BDA managers are able to coordinate big data-related activities in ways that support other functional managers, suppliers, and customers	4.18	1.63
	MS3. Our BDA’ managers are able to understand and evaluate the output extracted from big data	4.52	1.58
Technical skills	TS1. Our “big data analytics” staff has the right skills to accomplish their jobs successfully	4.24	1.70
	TS2. Our “big data analytics” staff is well trained	4.24	1.71
Intangible
Data-driven culture	DD1. We base our decisions on data rather than on instinct	4.39	1.47
	DD2. We are willing to override our own intuition when data contradict our viewpoints	4.51	1.52
	DD3. We continuously coach our employees to make decisions based on data	4.37	1.46
Organisational learning	OL1. We are able to acquire new and relevant knowledge	5.02	1.29
	OL2. We have made concerted efforts for the exploitation of existing competencies and exploration of new knowledge	4.51	1.41
Environmental uncertainty
Dynamism	DYN1. Products and services in our industry become obsolete very quickly	4.07	1.22
	DYN2. The product/services technologies in our industry change very quickly	4.13	1.35
	DYN3 We can predict what our competitors are going to do next (Reverse coded)	3.74	1.22
	DYN4. We can predict when our products/services demand changes (Reverse coded)	3.95	1.45
Heterogeneity	In our industry, there is considerable diversity in:
	HET1. Customer buying habits	3.89	1.23
	HET2. Nature of competition	4.01	1.54
	HET3. Product lines	3.92	1.23
Hostility	The survival of this organisation is currently threatened by:
	HOST1. Scarce supply of labour	3.99	1.52
	HOST2. Scarce supply of materials	3.92	1.39
	HOST3. Tough price competition	4.10	1.40
	HOST4. Tough competition in product/service quality	4.08	1.36
	HOST5. Tough competition in product/service differentiation	4.01	1.38
Innovative capability	How would you rate your organisations capability to generate the following types of innovations in the processes you introduce
Incremental	INC1. Innovations that reinforce our prevailing product/service lines	4.52	1.36
	INC2. Innovations that reinforce our existing expertise in prevailing products/services	4.39	1.23
	INC3. Innovations that reinforce how you currently compete	4.38	1.31
Radical	RAD1. Innovations that make our prevailing product/service lines obsolete	4.28	1.30
	RAD2. Innovations that fundamentally change our prevailing products/services	4.19	1.38
	RAD3. Innovations that make our expertise in prevailing products/services obsolete	4.27	1.38

Table

	D	BR	T	MS	TS	DD	OL	DYN	HET	HOS	INC	RAD
D1	0.714	0.199	0.480	0.286	0.294	0.156	0.270	0.254	0.258	0.105	0.219	0.288
D2	0.725	0.238	0.224	0.402	0.439	0.278	0.308	0.187	0.335	0.343	0.171	0.192
D3	0.817	0.216	0.457	0.543	0.360	0.206	0.541	0.267	0.276	0.330	0.083	0.265
BR1	0.272	0.946	0.249	0.387	0.520	0.260	0.352	0.362	0.315	0.326	0.337	0.401
BR2	0.242	0.842	0.172	0.387	0.312	0.343	0.296	0.306	0.237	0.353	0.307	0.378
T1	0.408	0.227	0.826	0.290	0.245	0.051	0.269	0.106	0.220	0.136	0.079	0.217
T2	0.495	0.202	0.795	0.303	0.308	0.267	0.338	0.310	0.208	0.169	0.126	0.348
T3	0.489	0.180	0.859	0.318	0.198	0.181	0.326	0.267	0.205	0.211	0.091	0.275
MS1	0.460	0.317	0.335	0.837	0.425	0.286	0.524	0.328	0.372	0.388	0.163	0.191
MS2	0.517	0.419	0.334	0.918	0.569	0.231	0.437	0.189	0.368	0.365	0.253	0.323
MS3	0.494	0.379	0.303	0.869	0.512	0.295	0.396	0.244	0.413	0.411	0.191	0.369
TS1	0.436	0.435	0.298	0.527	0.945	0.335	0.340	0.225	0.337	0.329	0.176	0.280
TS2	0.454	0.487	0.284	0.564	0.949	0.315	0.373	0.201	0.251	0.430	0.283	0.376
DD1	0.238	0.133	0.152	0.240	0.201	0.823	0.270	0.253	0.294	0.334	0.217	0.370
DD2	0.128	0.250	0.109	0.144	0.214	0.793	0.285	0.355	0.180	0.225	0.284	0.233
DD3	0.285	0.394	0.273	0.357	0.412	0.818	0.312	0.327	0.204	0.294	0.246	0.353
OL1	0.541	0.235	0.379	0.489	0.338	0.293	0.880	0.313	0.452	0.305	0.171	0.373
OL2	0.398	0.407	0.303	0.421	0.329	0.337	0.891	0.300	0.297	0.328	0.150	0.269
DYN1	0.374	0.392	0.372	0.433	0.027	0.230	0.208	0.801	0.380	0.391	0.143	0.179
DYN2	0.265	0.303	0.456	0.312	0.110	0.143	0.179	0.824	0.292	0.260	0.142	0.169
DYN3	0.215	0.165	0.305	0.268	0.030	0.142	0.169	0.834	0.287	0.255	0.114	0.116
DYN4	0.176	0.366	0.347	0.316	0.228	0.114	0.116	0.802	0.370	0.280	0.263	0.200
HET1	0.382	0.290	0.286	0.428	0.309	0.340	0.465	0.496	0.872	0.517	0.254	0.345
HET2	0.251	0.316	0.181	0.372	0.237	0.197	0.266	0.332	0.839	0.345	0.240	0.467
HET3	0.292	0.260	0.116	0.429	0.313	0.257	0.321	0.473	0.831	0.269	0.321	0.404
HOS1	0.287	0.255	0.069	0.373	0.347	0.351	0.337	0.518	0.464	0.921	0.289	0.410
HOS2	0.370	0.280	0.113	0.402	0.430	0.343	0.315	0.487	0.451	0.934	0.307	0.350
HOS3	0.396	0.176	0.385	0.316	0.351	0.387	0.204	0.306	0.322	0.864	0.353	0.374
HOS4	0.426	0.207	0.338	0.250	0.367	0.247	0.196	0.425	0.307	0.892	0.417	0.356
HOS5	0.372	0.433	0.374	0.229	0.435	0.336	0.184	0.126	0.178	0.887	0.322	0.311
INC1	0.119	0.410	0.027	0.230	0.208	0.343	0.263	0.231	0.164	0.354	0.815	0.439
INC2	0.287	0.116	0.110	0.143	0.179	0.125	0.196	0.425	0.307	0.125	0.783	0.348
INC3	0.087	0.263	0.030	0.142	0.169	0.240	0.188	0.439	0.108	0.257	0.753	0.345
RAD1	0.126	0.132	0.228	0.114	0.116	0.082	0.119	0.396	0.176	0.144	0.321	0.764
RAD2	0.314	0.214	0.246	0.263	0.200	0.338	0.207	0.426	0.555	0.278	0.361	0.787
RAD3	0.279	0.441	0.306	0.254	0.345	0.374	0.392	0.372	0.433	0.393	0.439	0.890

D – Data, BR – Basic Resources, T – Technology, MS – Managerial Skills, TS – Technical Skills, DD – Data-driven Culture, OL – Organisational Learning, DYN – Dynamism, HET – Heterogeneity, HOS – Hostility, INC – Incremental Process Innovation Capability, RAD – Radical Process Innovation Capability

Table

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
(1) Managerial skills
(2) Technical skills	0.662
(3) Data-driven culture	0.387	0.420
(4) Organisational Learning	0.661	0.470	0.486
(5) Dynamism	0.421	0.303	0.213	0.285
(6) Heterogeneity	0.462	0.324	0.411	0.346	0.412
(7) Hostility	0.405	0.324	0.297	0.373	0.563	0.561
(8) Incremental process innovation capabilities	0.234	0.368	0.395	0.342	0.504	0.533	0.507
(9) Radical process innovation capabilities	0.311	0.395	0.465	0.428	0.415	0.452	0.436	0.561

Table

Intermediate models for sub-sample 1		Raw coverage	Unique coverage	Consistency
Incremental process innovation capabilities
1.	D*T*~BR*TS*~MS*~DD*~DYN*HET*~HOS*LF*PI	0.28	0.24	0.91
2.	D*T*BR*TS*MS*DYN*~HET*~LF*SI	0.21	0.14	0.92
3.	D*BR*TS*~MS*DD*OL*DYN*~HOS*~LF*SI	0.21	0.11	0.92
4.	D*T*BR*TS*MS*DYN*HET*LF*SI	0.16	0.16	0.94
Overall solution consistency: 0.89
Overall solution coverage: 0.39
Radical process innovation capabilities
1.	D*T*BR*TS*MS*~DD*~OL*~DYN*HET*HOS *LF*PI	0.23	0.20	0.88
2.	D*BR*MS*DD*OL*DYN*~HET*HOS *LF*SI	0.17	0.14	0.91
3.	D*T*TS*MS*DD*DYN*~HET*~HOS*LF*SI	0.14	0.12	0.87
4.	D*TS*MS*DD*OL*DYN*HOS*LF*SI	0.15	0.13	0.87
Overall solution consistency: 0.87
Overall solution coverage: 0.36

D – Data, BR – Basic Resources, T – Technology, MS – Managerial Skills, TS – Technical Skills, DD – Data-driven Culture, OL – Organisational Learning, DYN – Dynamism, HET – Heterogeneity, HOS – Hostility, LF – Large Firms, SME – Small-Medium Enterprises, PI – Product Industry, SI – Service Industry

Table E1. Truth table for incremental process innovation capability.

DT	TCH	BR	TS	MS	OL	DD	DYN	HET	HOS	LAR	SME	PR	SI	Number	INC	Raw Consistency	PRI Consistency
1	1	1	1	0	0	0	0	1	1	1	0	1	0	16	1	0.91	0.90
1	1	0	1	0	1	0	0	1	0	1	0	1	0	9	1	0.89	0.87
1	1	1	1	1	0	0	1	0	1	0	1	0	1	8	1	0.93	0.90
1	0	1	1	0	1	1	1	0	0	0	1	0	1	7	1	0.90	0.87
1	1	1	1	0	0	0	1	1	0	1	0	0	1	7	1	0.89	0.85
1	1	0	1	1	1	1	1	1	0	1	0	1	0	4	1	0.94	0.91
1	0	1	1	0	1	1	1	1	0	1	0	0	1	3	1	0.96	0.95
1	1	1	1	1	1	0	1	1	1	1	0	0	1	3	1	0.97	0.95
1	0	1	1	0	1	1	1	1	1	1	0	0	1	3	1	0.96	0.94
1	0	0	0	1	1	1	1	0	1	0	1	1	0	3	0	0.79	0.73
0	1	1	1	0	1	0	1	0	1	1	0	0	1	3	0	0.78	0.71
1	0	0	0	0	1	0	0	1	0	0	1	1	0	3	0	0.79	0.73
1	0	0	1	1	1	0	1	0	1	1	0	0	1	3	0	0.77	0.72

Table E2. Truth table for radical process innovation capability.

DT	TCH	BR	TS	MS	OL	DD	DYN	HET	HOS	LAR	SME	PR	SI	Number	RAD	Raw Consistency	PRI Consistency
1	1	1	1	1	0	0	0	1	1	1	0	1	0	15	1	0.94	0.93
1	0	0	0	1	1	1	1	0	1	1	0	0	1	13	1	0.91	0.88
1	0	0	1	1	1	1	1	1	1	1	0	1	0	8	1	0.92	0.90
1	1	0	1	1	0	1	1	0	0	0	1	0	1	7	1	0.88	0.86
1	0	0	1	1	1	1	1	1	1	1	0	1	0	5	1	0.92	0.89
1	1	1	1	1	1	1	1	1	1	1	0	0	1	4	1	0.91	0.88
1	0	1	0	1	1	1	1	0	1	1	0	0	1	3	1	0.93	0.90
1	0	0	1	1	1	1	1	0	1	0	1	0	1	3	1	0.88	0.86
1	1	1	1	0	1	0	0	1	1	0	1	1	0	3	0	0.77	0.73
0	1	1	1	0	1	1	1	0	1	0	1	0	1	3	0	0.78	0.74
1	1	0	0	0	1	1	1	0	0	1	0	1	0	3	0	0.76	0.73

Note: DT – Data; TCH – Technology; BR – Basic Resources; TS – Technical Skills; MS – Managerial Skills; OL – Organisational Learning; DD – Data-drive Culture; DYN – Dynamism; HET – Heterogeneity; HOS – Hostility; LAR – Large Firms; SME – Small-Medium Enterprises; PI – Product Industry; SI – Service Industry; INC – Incremental Process Innovation Capability; RAD – Radical Process Innovation Capability