Abstract
A central question for information systems (IS) researchers and practitioners is if, and how, big data can help attain a competitive advantage. Anecdotal claims suggest that big data can enhance a firm’s incremental and radical process innovation capabilities; yet, there is a lack of theoretically grounded empirical research to support such assertions. To address this question, this study builds on the Resource-Based View and examines the fit between big data analytics resources and organizational contextual factors in driving a firm’s process innovation capabilities. Survey data from 202 chief information officers and IT managers working in Norwegian firms is analyzed by means of fuzzy set qualitative comparative analysis (fsQCA). Results demonstrate that under different patterns of contextual factors the significance of big data analytics resources varies, with specific combinations leading to high levels of incremental and radical process innovation capabilities. These findings suggest that IS researchers and practitioners should look beyond direct effects, and rather, identify key combinations of factors that lead to enhanced process innovation capabilities.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
McAfee, A., Brynjolfsson, E., Davenport, T.H.: Big data: the management revolution. Harvard Bus. Rev. 90, 60–68 (2012)
Prescott, M.: Big data and competitive advantage at Nielsen. Manag. Decis. 52, 573–601 (2014)
Fosso Wamba, S., Mishra, D.: Big data integration with business processes: a literature review. Bus. Process Manag. J. 23, 477–492 (2017)
Ortbach, K., Plattfaut, R., Poppelbuß, J., Niehaves, B.: A dynamic capability-based framework for business process management: theorizing and empirical application. In: 2012 45th Hawaii International Conference on System Science (HICSS), pp. 4287–4296. IEEE (2012)
Kiron, D.: Lessons from becoming a data-driven organization. MIT Sloan Manag. Rev. 58 (2017)
Constantiou, I.D., Kallinikos, J.: New games, new rules: big data and the changing context of strategy. J. Inf. Technol. 30, 44–57 (2015)
Mikalef, P., Pappas, I.O., Krogstie, J., Giannakos, M.: Big data analytics capabilities: a systematic literature review and research agenda. Inf. Syst. e-Bus. Manag. 1–32 (2017)
Gupta, M., George, J.F.: Toward the development of a big data analytics capability. Inf. Manag. 53, 1049–1064 (2016)
Schryen, G.: Revisiting IS business value research: what we already know, what we still need to know, and how we can get there. Eur. J. Inf. Syst. 22, 139–169 (2013)
Trkman, P.: The critical success factors of business process management. Int. J. Inf. Manag. 30, 125–134 (2010)
Trkman, P.: Increasing process orientation with business process management: critical practices’. Int. J. Inf. Manag. 33, 48–60 (2013)
vom Brocke, J., Zelt, S., Schmiedel, T.: On the role of context in business process management. Int. J. Inf. Manag. 36, 486–495 (2016)
Bharadwaj, A.: A resource-based perspective on information technology capability and firm performance: an empirical investigation. MIS Q. 24, 169–196 (2000)
Ravichandran, T., Lertwongsatien, C.: Effect of information systems resources and capabilities on firm performance: a resource-based perspective. J. Manag. Inf. Syst. 21, 237–276 (2005)
Mikalef, P., Framnes, V.A., Danielsen, F., Krogstie, J., Olsen, D.H.: Big data analytics capability: antecedents and business value. In: Pacific Asia Conference on Information Systems (2017)
Schmiedel, T., vom Brocke, J.: Business process management: potentials and challenges of driving innovation. In: vom Brocke, J., Schmiedel, T. (eds.) BPM - Driving Innovation in a Digital World. MP, pp. 3–15. Springer, Cham (2015). https://doi.org/10.1007/978-3-319-14430-6_1
Mikalef, P., Boura, M., Lekakos, G., Krogstie, J.: Complementarities between information governance and big data analytics capabilities on innovation. In: European Conference on Information Systems (ECIS), Portsmouth. AIS (2018)
Vom Brocke, J., Rosemann, M.: Handbook on Business Process Management. Springer, Heidelberg (2010). https://doi.org/10.1007/978-3-642-00416-2
Sambamurthy, V., Bharadwaj, A., Grover, V.: Shaping agility through digital options: reconceptualizing the role of information technology in contemporary firms. MIS Q. 27, 237–263 (2003)
Wang, N., Liang, H., Zhong, W., Xue, Y., Xiao, J.: Resource structuring or capability building? An empirical study of the business value of information technology. J. Manag. Inf. Syst. 29, 325–367 (2012)
Bhatt, G.D., Grover, V.: Types of information technology capabilities and their role in competitive advantage: an empirical study. J. Manag. Inf. Syst. 22, 253–277 (2005)
Lu, Y., Ramamurthy, K.: Understanding the link between information technology capability and organizational agility: an empirical examination. MIS Q. 35, 931–954 (2011)
Grant, R.M.: The resource-based theory of competitive advantage: implications for strategy formulation. Calif. Manag. Rev. 33, 114–135 (1991)
Janssen, M., van der Voort, H., Wahyudi, A.: Factors influencing big data decision-making quality. J. Bus. Res. 70, 338–345 (2017)
Wamba, S.F., Gunasekaran, A., Akter, S., Ren, S.J.F., Dubey, R., Childe, S.J.: Big data analytics and firm performance: effects of dynamic capabilities. J. Bus. Res. 70, 356–365 (2017)
Davenport, T.H., Patil, D.: Data scientist: the sexiest job of the 21st century. Harvard Bus. Rev. 90, 70–76 (2012)
LaValle, S., Lesser, E., Shockley, R., Hopkins, M.S., Kruschwitz, N.: Big data, analytics and the path from insights to value. MIT Sloan Manag. Rev. 52, 21 (2011)
Vidgen, R., Shaw, S., Grant, D.B.: Management challenges in creating value from business analytics. Eur. J. Oper. Res. 261, 626–639 (2017)
Vom Brocke, J., Schmiedel, T.: BPM-Driving Innovation in a Digital World. Springer, Heidelberg (2015). https://doi.org/10.1007/978-3-319-14430-6
Recker, J.C., Rosemann, M.: Systemic ideation: a playbook for creating innovative ideas more consciously. 360° Bus. Transform. J. 13, 34–45 (2015)
Adner, R., Levinthal, D.: Demand heterogeneity and technology evolution: implications for product and process innovation. Manag. Sci. 47, 611–628 (2001)
Fritsch, M., Meschede, M.: Product innovation, process innovation, and size. Rev. Ind. Organ. 19, 335–350 (2001)
Hogan, S.J., Soutar, G.N., McColl-Kennedy, J.R., Sweeney, J.C.: Reconceptualizing professional service firm innovation capability: scale development. Ind. Mark. Manag. 40, 1264–1273 (2011)
Ettlie, J.E., Bridges, W.P., O’keefe, R.D.: Organization strategy and structural differences for radical versus incremental innovation. Manag. Sci. 30, 682–695 (1984)
Gallouj, F., Savona, M.: Innovation in services: a review of the debate and a research agenda. J. Evol. Econ. 19, 149 (2009)
Subramaniam, M., Youndt, M.A.: The influence of intellectual capital on the types of innovative capabilities. Acad. Manag. J. 48, 450–463 (2005)
Smith, H., Fingar, P.: Process management maturity models. Business Process Trends (2004)
Rosemann, M., vom Brocke, J.: The six core elements of business process management. In: vom Brocke, J., Rosemann, M. (eds.) Handbook on Business Process Management 1. IHIS, pp. 105–122. Springer, Heidelberg (2015). https://doi.org/10.1007/978-3-642-45100-3_5
Vom Brocke, J., Schmiedel, T., Recker, J., Trkman, P., Mertens, W., Viaene, S.: Ten principles of good business process management. Bus. Process Manag. J. 20, 530–548 (2014)
Donaldson, L.: The Contingency Theory of Organizations. Sage, Thousand Oaks (2001)
Ortt, J.R., van der Duin, P.A.: The evolution of innovation management towards contextual innovation. Eur. J. Innov. Manag. 11, 522–538 (2008)
vom Brocke, J., Seidel, S., Tumbas, S.: The BPM curriculum revisited. BPTrends, April 2015
Rosemann, M.: Proposals for future BPM research directions. In: Ouyang, C., Jung, J.-Y. (eds.) AP-BPM 2014. LNBIP, vol. 181, pp. 1–15. Springer, Cham (2014). https://doi.org/10.1007/978-3-319-08222-6_1
Pöppelbuß, J., Plattfaut, R., Niehaves, B.: How do we progress? An exploration of alternate explanations for BPM capability development. CAIS 36, 1 (2015)
Torres, R., Sidorova, A., Jones, M.C.: Enabling firm performance through business intelligence and analytics: a dynamic capabilities perspective. Inf. Manag. (2018)
Fiss, P.C.: A set-theoretic approach to organizational configurations. Acad. Manag. Rev. 32, 1180–1198 (2007)
Sax, L.J., Gilmartin, S.K., Bryant, A.N.: Assessing response rates and nonresponse bias in web and paper surveys. Res. High. Educ. 44, 409–432 (2003)
Chang, S.-J., Van Witteloostuijn, A., Eden, L.: From the editors: common method variance in international business research. J. Int. Bus. Stud. 41, 178–184 (2010)
Mikalef, P., Krogstie, J.: Big data governance and dynamic capabilities: the moderating effect of environmental uncertainty. In: Pacific Asia Conference on Information Systems (PACIS). AIS, Yokohama (2018)
Newkirk, H.E., Lederer, A.L.: The effectiveness of strategic information systems planning under environmental uncertainty. Inf. Manag. 43, 481–501 (2006)
Farrell, A.M.: Insufficient discriminant validity: a comment on Bove, Pervan, Beatty, and Shiu (2009). J. Bus. Res. 63, 324–327 (2010)
Henseler, J., Ringle, C.M., Sarstedt, M.: A new criterion for assessing discriminant validity in variance-based structural equation modeling. J. Acad. Mark. Sci. 43, 115–135 (2015)
Cenfetelli, R.T., Bassellier, G.: Interpretation of formative measurement in information systems research. MIS Q. 33(4), 689–707 (2009)
MacKenzie, S.B., Podsakoff, P.M., Podsakoff, N.P.: Construct measurement and validation procedures in MIS and behavioral research: integrating new and existing techniques. MIS Q. 35, 293–334 (2011)
Schmiedel, T., Vom Brocke, J., Recker, J.: Development and validation of an instrument to measure organizational cultures’ support of business process management. Inf. Manag. 51, 43–56 (2014)
Edwards, J.R.: Multidimensional constructs in organizational behavior research: An integrative analytical framework. Organ. Res. Methods 4, 144–192 (2001)
Petter, S., Straub, D., Rai, A.: Specifying formative constructs in information systems research. MIS Q. 31(4), 623–656 (2007)
Fiss, P.C.: Building better causal theories: a fuzzy set approach to typologies in organization research. Acad. Manag. J. 54, 393–420 (2011)
Ragin, C.C.: Qualitative comparative analysis using fuzzy sets (fsQCA). In: Configurational Comparative Methods, vol. 51 (2009)
Woodside, A.G.: Moving beyond multiple regression analysis to algorithms: calling for adoption of a paradigm shift from symmetric to asymmetric thinking in data analysis and crafting theory. Elsevier (2013)
Ordanini, A., Parasuraman, A., Rubera, G.: When the recipe is more important than the ingredients: a qualitative comparative analysis (QCA) of service innovation configurations. J. Serv. Res. 17, 134–149 (2014)
Ragin, C.C.: Fuzzy-Set Social Science. University of Chicago Press, Chicago (2000)
Mikalef, P., Pateli, A., Batenburg, R.S., Wetering, R.V.D.: Purchasing alignment under multiple contingencies: a configuration theory approach. Ind. Manag. Data Syst. 115, 625–645 (2015)
Mikalef, P., Pateli, A.: Information technology-enabled dynamic capabilities and their indirect effect on competitive performance: Findings from PLS-SEM and fsQCA. J. Bus. Res. 70, 1–16 (2017)
Mikalef, P., Van de Wetering, R., Krogstie, J.: Big Data enabled organizational transformation: the effect of inertia in adoption and diffusion. In: Business Information Systems (BIS) (2018)
Acknowledgements
This project has received funding from the European Union’s Horizon 2020 research and innovation programme, under the Marie Sklodowska-Curie grant agreement No. 704110.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Appendix A. Survey Instrument
Appendix A. Survey Instrument
The survey instrument can be found here: https://goo.gl/4y4QVr.
Rights and permissions
Copyright information
© 2018 Springer Nature Switzerland AG
About this paper
Cite this paper
Mikalef, P., Krogstie, J. (2018). Big Data Analytics as an Enabler of Process Innovation Capabilities: A Configurational Approach. In: Weske, M., Montali, M., Weber, I., vom Brocke, J. (eds) Business Process Management. BPM 2018. Lecture Notes in Computer Science(), vol 11080. Springer, Cham. https://doi.org/10.1007/978-3-319-98648-7_25
Download citation
DOI: https://doi.org/10.1007/978-3-319-98648-7_25
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-98647-0
Online ISBN: 978-3-319-98648-7
eBook Packages: Computer ScienceComputer Science (R0)