The impact of business analytics capabilities on innovation, information quality, agility and firm performance: the moderating role of industry dynamism

Abstract

Purpose

As businesses keep investing substantial resources in developing business analytics (BA) capabilities, it is unclear how the performance improvement transpires as BA affects performance in many different ways. This paper aims to analyze how BA capabilities affect firms’ agility through resources like information quality and innovative capacity considering industry dynamism and the resulting impact on firm performance.

Design/methodology/approach

This paper tested the research hypothesis using primary data collected from 192 companies operating in Bangladesh. The data were analyzed using partial least squares-based structural equation modeling.

Findings

The results indicate that BA capabilities improve business resources like information quality and innovative capacity, which, in turn, significantly impact a firm’s agility. This paper also found out that industry dynamism moderates the firms’ agility and, ultimately, firms’ performance.

Practical implications

The contribution of this work provides insight regarding the role of business analytics capabilities in increasing organizational agility and performance under the moderating effects of industry dynamism.

Originality/value

The present research is to the best of the authors’ knowledge among the first studies considering a firm’s agility to explore the impact of BA on a firm’s performance in a dynamic environment. While previous researchers discussed resources like information quality and innovative capability, current research theoretically argues that these items are a leveraging point in a BA context to increase firm agility.

Citation

Khan, A., Talukder, M.S., Islam, Q.T. and Islam, A.K.M.N. (2022), "The impact of business analytics capabilities on innovation, information quality, agility and firm performance: the moderating role of industry dynamism", VINE Journal of Information and Knowledge Management Systems, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/VJIKMS-01-2022-0027