Employee innovative job performance and firms' financial performance: a multilevel insight with big data analytics and entrepreneurial orientation

Abstract

Purpose

The present research developed and investigated a multilevel theoretical framework by underpinning a resource-based view (RBV) that uncovers how and when academic researchers and organizational practitioners can strategically attain a competitive edge and increase their financial performance.

Design/methodology/approach

To consider the dynamic and ever-challenging business environment, this research examined the contingency of big data analytics (BDA) and entrepreneurial orientation (EO). The multi-source and multilevel data used for this research were gathered from 195 manufacturing firms listed on the Pakistan stock exchange by employing a time-lagged design and survey strategy. Additionally, for hypothesis testing, multilevel path analysis was conducted in MPlus.

Findings

The authors uncovered the sequential mediation mechanisms of organizational innovation (OI) and competitive advantage (CA) on the relationship between individual-level employee innovative job performance (EIJP) and firms' financial performance (FFP) based on the resource-based view. The authors noted positive and significant sequential mediation of OI and CA on the effect of EIJP on FFP. Similarly, the relationship between EIJP and OI was found to be stronger when the boundary conditions of BDA and EO were higher than when they were lower.

Originality/value

This research offers new practical insights for managers and organizational practitioners to better value their EIJP, and due diligence is required when employing BDA and EO to attain a competitive edge over competitors and increase financial performance.

Citation

Mahmood, F., Saleem, M., Ariza-Montes, A. and Han, H. (2023), "Employee innovative job performance and firms' financial performance: a multilevel insight with big data analytics and entrepreneurial orientation", International Journal of Manpower, Vol. 44 No. 8, pp. 1553-1570. https://doi.org/10.1108/IJM-03-2022-0110