The role of information governance in big data analytics driven innovation

The age of big data analytics is now here, with companies increasingly investing in big data initiatives to foster innovation and outperform competition. Nevertheless, while researchers and practitioners started to examine the shifts that these technologies entail and their overall business value, it is still unclear whether and under what conditions they drive innovation. To address this gap, this study draws on the resource-based view (RBV) of the firm and information governance theory to explore the interplay between a firm’s big data analytics capabilities (BDACs) and their information governance practices in shaping innovation capabilities. We argue that a firm’s BDAC helps enhance two distinct types of innovative capabilities, incremental and radical capabilities, and that information governance positively moderates this relationship. To examine our research model, we analyzed survey data collected from 175 IT and business managers. Results from partial least squares structural equation modelling analysis reveal that BDACs have a positive and significant effect on both incremental and radical innovative capabilities. Our analysis also highlights the important role of information governance, as it positively moderates the relationship between BDAC’s and a firm’s radical innovative capability, while there is a nonsignificant moderating effect for incremental innovation capabilities. Finally, we examine the effect of environmental uncertainty conditions in our model and find that information governance and BDACs have amplified effects under conditions of high environmental dynamism.     

Business intelligence and analytics use,innovation ambidexterity,and firm performance: A dynamic capabilities perspective

To survive in a dynamic and hyper-competitive business environment, firms are compelled to simultaneously introduce incremental and radical innovations. While it is recognised that business intelligence and analytics (BI&A) can support innovation and provide organisational value, the literature provides a limited understanding of its impact on balancing different innovation activities and ensuring performance gains. In this study, we examine the relationship between BI&A use, innovation ambidexterity, and firm performance by relying on the process theory of IS value creation as well as the dynamic capabilities perspective. We test our model using data collected from medium- and large-sized firms in Slovenia, applying partial least squares modelling. The results support the notion that BI&A use is positively associated with successful balancing between explorative and exploitative innovation activities, which in turn enhances firm performance. Our results also indicate that innovation ambidexterity is enhanced in two ways: indirectly through interaction with the firm’s absorptive capacity, and directly by increasing the possibilities of faster experimentation with offerings of products or services and improved predictability of the value of new products or services.     

Harnessing business analytics value through organizational absorptive capacity

Business analytics (BA) is a resource-intensive, risky endeavor. However, the literature has not addressed the important question of how to assimilate BA technologies for competitive advantage. We build a research framework and outline the BA assimilation mechanisms through organizational absorptive capacity (AC). Data were collected from 600 companies across six countries and analyzed using partial least squares. The findings revealed that organizational AC plays a crucial mediating role between BA competency and BA assimilation, leading to competitive advantage. This study contributes significantly to both information technology assimilation and BA value research by incorporating the role of organizational AC.     

Exploration–Exploitation: How business analytics powers organisational ambidexterity for environmental sustainability

Simultaneous exploration and exploitation (i.e., exploration–exploitation) can help a firm address short-term environmental requirements and ensure long-term environmental viability. Exploration–exploitation, however, challenges organisational practices because they compete for resources and time. While business analytics (BA) offers the potential to overcome these challenges, research to date offers very limited insights into how BA capabilities interact with ambidextrous capabilities to realise environmental value. We address this issue by conducting a comparative case study at a bank and at a real-estate trust through the theoretical lens of dynamic capabilities. We develop a process model to explain how BA powers ambidextrous practices to achieve sustainability outcomes over time. We uncover two mechanisms: a BA-powered context shaping mechanism by which BA powers contextual ambidexterity at the employee level using data availability, timeliness, and analytics culture; and a BA-powered resource linking mechanism by which BA powers structural ambidexterity at intra- and inter-organisational levels using holistic insights and analytics leadership. Our model highlights the contextual factors that condition the extent to which a firm moves along the continuum of exploration–exploitation. We also define a new dimension of sustainability outcomes which we label eco-awareness to explain how BA shapes employees' environmental alertness and enables the paradigm shift in an organisation's sustainability mindset.     

Developing business analytic capabilities for combating e-commerce identity fraud: A study of Trustev’s digital verification solution

Given the significant growth in e-commerce, organizations are seeking novel capabilities and technological innovations to deal simultaneously with the volume of data generated and the need to combat potentially damaging fraudulent activity. Although recent studies identify business analytics (BA) as a potential means of combating fraud, significant inroads into the interrelationships between capabilities and the articulation of a pathway to analytical capability have yet to be made. This study presents an investigation of Trustev, a global provider of digital verification technology, and its development of the profile-based social fingerprinting fraud detection solution. Adopting an interpretive structural modeling technique for data analysis, we construct a framework and reveal a road map for organizations to become analytically capable in online fraud detection. Our study adds to the discourse of the application of BA to combat online fraud.     

Business analytics maturity of firms: an examination of the relationships between managerial perception of IT,business analytics maturity and success

This study develops a measure for business analytics (BA) maturity and empirically examines the relationships between managerial perception of IT, BA maturity and BA success. The findings suggest that (1) BA maturity can be measured via BA integration & management support, process-level benefits of BA and technology & data analytics capabilities, (2) BA maturity positively affects organizations’ overall BA success, and (3) managerial perception of IT positively influence organizations’ achievement of BA maturity.     

Exploring the relationship between big data analytics capability and competitive performance: The mediating roles of dynamic and operational capabilities

A central question for information systems (IS) researchers and practitioners is if, and how, big data can help attain a competitive advantage. To address this question, this study draws on the resource-based view, dynamic capabilities view, and on recent literature on big data analytics, and examines the indirect relationship between a firm’s big data analytics capability (BDAC) and competitive performance. The study extends existing research by proposing that BDACs enable firms to generate insight that can help strengthen their dynamic capabilities, which, in turn, positively impact marketing and technological capabilities. To test our proposed research model, we used survey data from 202 chief information officers and IT managers working in Norwegian firms. By means of partial least squares structural equation modeling, results show that a strong BDAC can help firms build a competitive advantage. This effect is not direct but fully mediated by dynamic capabilities, which exerts a positive and significant effect on two types of operational capabilities: marketing and technological capabilities. The findings suggest that IS researchers should look beyond direct effects of big data investments and shift their attention on how a BDAC can be leveraged to enable and support organizational capabilities.     

“What can I(S) do for you?”: How technology enables service providers to elicit customers’ preferences and deliver personalized service

This research studies the effective use of an IT-enabled Customer Service System (CSS) in the hospitality sector. Drawing on Effective Use Theory, we study how digital representations of customers’ preferences support service providers in the service personalization process. Our model posits customers’ preferences elicitation as the antecedent of CSS’ effective use, which yields superior customer value. This representational perspective matches recent efforts to study customer value as cocreated by customers and service providers. Based on a longitudinal dataset of 118,647 hotel reservations, we explain how digital representations of customers’ preferences enable service providers to personalize service and increase customer value.     

The synergistic effects of IT-enabled resources on organizational capabilities and firm performance

Computing the value of IT investments and clarifying how the portfolio of IT/IS resources affect a firm's performance and sustainable competitive advantage are critical issues today. We attempted to develop an effective measurement technique and use organizational theory to discover the strategic role of IT-enabled resources in the firm's competitive agenda. Based on a resource-based view of the firm, we proposed a way to evaluate the synergistic effect of such resources on the firm's capabilities, as they, influence the firms’ strategic objectives and improve its financial performance. The technological, human, and organizational resources work together to generate sub-additive cost and super-additive value synergies. Operations, R&D, and marketing capabilities allow firms to implement a business strategy that reflects its customer needs. A survey was conducted to check our framework. Our findings should provide valuable decision guides for practitioners when choosing a portfolio of IT/IS resources for implementing business strategies.     

Strategy archetypes for digital transformation: Defining meta objectives using business process management

Digital transformation dominates the practical and scientific discourse. Still, many companies do not have a clear plan on how to approach it. Particularly, small- and medium-sized enterprises struggle to initiate their digital journey as they lack resources and expertise. In response, we examine how five companies use business process management (BPM) to implement digital transformation. We perform a qualitative interview study, and analyze the capabilities of BPM based on six requirements of digital transformation. Thereby, we carve out 17 recommendations, which must be adapted according to companies’ meta objectives. We derive three strategy archetypes to serve as implementation blueprints.     

‘Big time’: An examination of temporal complexity and business value in analytics

Time is central to the purported business value of analytics. Yet, research has adopted a simplistic, ‘clock’ interpretation of time, ignoring its complex and socially embedded nature. There is also an overemphasis on analytics software and not on the people using them. Although analytics may be ‘fast’ to realise business value, it must cater to temporal complexities of organisations and people using it. Drawing on the temporality theory, this study develops temporal factors to examine the value of analytics. We also develop a research agenda that identifies opportunities to examine time, temporal personalities and other factors when people use analytics in the organisation.     

Iterative uncertainty reduction in multi-actor smart service innovation

Smart service innovation is the process of reconfiguring resources, structures, and value co-creation processes in service systems that result in novel data-driven service offerings. The nature of such offerings requires the involvement of multiple actors, which has been investigated by a few studies only. In particular, little is known about the multiple actors’ efforts to manage uncertainty in the process of establishing smart service systems. Empirically grounded in data from 25 interviews with industry experts, we explore how organizations act and interact in smart service innovation processes. For our data analysis, we adopt a microfoundational view to derive a theoretical model that conceptualizes actor engagement as a microfoundation for iterative uncertainty reduction in the actor-to-actor network of the smart service system. Our study contributes to information systems research on service systems engineering and digital transformation by explaining smart service innovation from both a multi-actor and a multi-level perspective, drawing on service-dominant (S-D) logic and microfoundations as well-established theoretical lenses.

     

Does the source of external knowledge matter? Examining the role of customer co-creation and partner sourcing in knowledge creation and innovation

External knowledge is widely acknowledged to be critical for organizational innovation. However, we lack understanding of how different sources of knowledge—namely knowledge from customers and partners—influence innovation. Grounded in the knowledge-based view of the firm, we theoretically develop and empirically test a model of mechanisms through which two forms of external knowledge acquisition i.e., customer co-creation and partner sourcing, foster knowledge creation and innovation. We posit that the different forms of external knowledge acquisition contribute differentially toward innovation outcomes. Finally, we examine the moderating role of knowledge dissemination capability on the relationships between external knowledge of both forms. We test our proposed model using data gathered from 655 organizations in two knowledge intensive sectors i.e., financial and information technology. Our model explains 65 % of the variance in knowledge creation and highlights that organizations with higher degree of knowledge creation are more likely to innovate through new patents. We extend prior research on customer co-creation and organizational innovation by identifying intervening organizational variables and mechanisms that explicate the effects of external knowledge on innovation. The results provide important implications for organizations regarding the capabilities needed to utilize external knowledge for innovation.     

Lead complementor involvement in the design of platform boundary resources: A case study of BMW's onboard apps

An increasing number of companies have implemented digital platforms to attract complementors who create innovations on the platform. Establishing such digital platforms is a challenge for incumbent companies because they lack related experience and capabilities. In particular, boundary resources that are the interface between the platform and complementors need to be well-designed to attract complementors and keep them engaged. We propose that lead complementor involvement helps incumbent companies to improve the design of the platform boundary resources. In a multi-year action research study, we established lead complementor involvement in the boundary resource design of a digital platform for automotive onboard apps at the BMW Group and evaluated how boundary resources improved. Along three episodes, we illustrate that lead complementor involvement was effective and we summarise our findings in four propositions: (1) lead complementor involvement facilitates platform emergence for incumbent companies by enhancing boundary resource design, (2) lead complementor involvement is more efficient in higher platform layers, (3) lead complementor involvement is facilitated by an increase of intensity and frequency of interactions between complementors and platform owner and (4) establishing a complementor community helps to continuously identify opportunities for lead complementor involvement. We contribute to the information systems literature on platform emergence and design by focusing on the process of designing boundary resources and by considering the heterogeneity of complementors. Furthermore, we contextualise the concept of lead user involvement in the domain of digital platforms and compare and contrast lead complementors and lead users.     

基于区块链的数字货币发展现状与展望

数字货币(Digital currency)作为区块链技术迄今为止最典型也最成功的应用,得益于区块链分布式共识与去中心化信任的技术优势,也促使了区块链技术与经济活动的深度融合,并由此改变了数字社会的组织方式.近年来,无论是在基础理论研究方面,还是在实践应用发展方面,数字货币均呈现出了蓬勃向上的态势.本文从技术创新、机制...     

The role of users and customers in digital innovation: Insights from B2B manufacturing firms

Diffusion of digital technologies into the manufacturing industry has created new opportunities for innovation that firms must address to remain competitive. We investigate the role of customer and user knowledge in the digital innovation processes of three global B2B manufacturing companies. We find that the B2B manufacturing industry's characteristics influence how users and customers may be leveraged. Customers making the purchasing decisions are considered for knowledge about short-term changes in market needs, while users working directly with the products provide long-term guidance for digital innovation. We identify practices for acquiring, distributing, and using customer and user knowledge for digital innovation.     

The relationships among supply chain partnerships,customer orientation,and operational performance: the effect of flexibility

The research goal of this study was to investigate how supply chain partnerships and customer orientation affect the operational performance of food service companies by moderating flexibility. In total, 725 invitation messages were mailed to members of Ihergo, Groupon, 17P, of which, 166 were returned (a return rate of 22.9 %). Structured equation modeling with PLS analysis allows empirical assessment of the measurement model used in this study. Companies will redefine their business models by connecting suppliers’ and customers’ view, and by integrating customers’ opinions and queries for the planning and development of new products. Linkage efficiency suppliers will reduce inventory and decrease perishable for food service companies based on the driving force to buy in the virtual environment. Product innovation and reduction of the time to market by supplier integration and customer integration are important to food service companies, and flexibility plays an important role in food service companies.     

Generating and exploiting customer insights from social media data

Previous research has emphasized the virtues of customer insights as a key source of competitive advantage. The rise of customers’ social media use allows firms to collect customer data in an ever-increasing volume and variety. However, to date, little is known about the capabilities required of firms to turn social media data into valuable customer insights and exploit these insights to create added value for customers. Based on the dynamic capabilities perspective, in particular the concept of absorptive capacity (ACAP), the authors conducted multiple case studies of seven mid-sized and large B2C firms in Switzerland and Germany. The results provide an in-depth analysis of the underlying processes of ACAP as well as contingent factors – that is, physical, human and organizational resources that underpin the firms’ ACAP.     

The dual role of IT capabilities in the development of digital products and services

Past research on the business value of information technologies (IT) has demonstrated the positive contribution of IT capabilities (IT-C) to product innovation performance. However, with the advent of digital technologies, a new kind of product innovations gained importance: digital product and service innovations (DPI). As a consequence of their idiosyncratic characteristics, the usefulness and validity of existing product innovation management concepts cannot be transferred to the context of DPI without further ado. Accordingly, this study reinvestigates the role of IT-C in the specific context of DPI. Therefore, we begin with a differentiation of DPI from traditional, non-digital product innovation. Then, we propose that IT-C affect the performance of DPI projects via two paths. First, based on the notion that DPI rely on the use of innovative IT, we assume that IT-C directly impact DPI performance. Second, following prior research that has argued that the performance contribution of IT-C is mediated by other organizational intermediaries, we assume that IT-C also indirectly contribute to DPI performance through their positive influence on other organizational capabilities. One such organizational capability that mediates the influence of IT-C on DPI performance is a firm’s DPI capabilities (DPI-C). DPI-C allow firms to deploy their digital resources for DPI purposes and, thus, are an important antecedent for DPI performance. To test our assumptions, we use partial least squares–structural equation modeling technique and analyze survey data collected from DPI projects across different industries in Germany, Austria, and Switzerland.