The impact of big data analytics capabilities on service innovation in state-owned enterprises : the moderating role of institutional pressure

Abstract

Technological advances and trends such as connected devices, application of sensors, and online content have resulted in an increase in available data. This has led to an increased importance of big data analytics among researchers and managers, highlighting the value that big data analytics can bring to organizations. The study addresses a significant research gap in understanding how big data analytics capabilities (BDAC) influence service innovation within the context of stateowned enterprises (SOEs). While previous research has extensively explored the impact of BDAC on innovation in private and large multinational organizations, there is limited knowledge on its effects within SOEs, particularly in developing economies like South Africa. This study aims to also fill this gap by analysing the contextual environment by examining the role of institutional pressures in moderating the relationship between BDAC and service innovation. The purpose of the study is to determine the impact of BDAC on service innovation in SOEs and to provide insights for SOE leaders on how to invest in BDAC to enhance efficiency and performance through service innovation. The research also seeks to uncover the role of institutional pressures in moderating this relationship A quantitative mono study methodology was conducted, involving a survey distributed to employees in various SOEs in South Africa. The data collected was analysed using statistical methods, including Structured Equation Modelling, Pearson’s correlation, Spearman’s rho correlation, and linear regression analysis. The results indicate that BDAC has a positive and significant impact on service innovation in SOEs. Among the BDAC components, intangible capabilities were found to have the most significant impact on service innovation. Additionally, the study found that institutional pressures, particularly normative and mimetic pressures, positively moderate the relationship between BDAC and service innovation. Coercive pressure, however, did not show a significant moderating effect. In conclusion, the study highlights the importance of investing BDAC to drive service innovation in SOEs. It also emphasizes the need for SOE leaders to foster a datadriven culture and organizational learning to maximize the benefits of BDAC. The findings suggest that while institutional pressures can enhance the impact of BDAC on service innovation, the role of coercive pressure is less significant. Future research should explore the dynamic capabilities view of BDAC and its impact on ii service innovation over time, as well as the development of a standard BDAC model for different contexts.