Sustainable Competitive Advantage Driven by Big Data Analytics and Innovation

• Main Authors: Muawia Ramadan, Hana Shuqqo, Layalee Qtaishat, Hebaa Asmar, Bashir Salah
• Format: Article
• Language: English
• Published: MDPI AG 2020-09-01
• Series: Applied Sciences
• Subjects: big data analytics (BDA); data availability (DA); dynamic capabilities; firm performance; innovation; strategic management
• Online Access: https://www.mdpi.com/2076-3417/10/19/6784

Big data analytics (BDA) is one of the main pillars of Industry 4.0. It has become a promising tool for supporting the competitive advantages of firms by enhancing data-driven performance. Meanwhile, the scarcity of resources on a worldwide level has forced firms to consider sustainable-based performance as a critical issue. Additionally, the literature confirms that BDA and innovation can enhance firms’ performance, leading to competitive advantage. However, there is a lack of studies that examine whether or not BDA and innovation alone can sustain a firm’s competitive advantage. Drawing on previous studies and dynamic capability theory, this study proposes that big data analytics capabilities (BDAC), supported by a high level of data availability (DA), can improve innovation capabilities (IC) and, hence, lead to the development of a sustainable competitive advantage (SCA). This study examines the proposed hypotheses by surveying 117 manufacturing firms and analyzing responses via partial least squares–structural equation modeling (PLS-SEM) statistical software. Findings reveal that BDAC relies significantly on the degree of DA and has a significant role in increasing IC. Furthermore, the analysis confirms that IC has a significant and direct effect on a firm’s SCA, while BDAC has no direct effect on SCA. This study provides valuable insights for manufacturing firms to improve their sustainable business performance and theoretical and practical insights into BDA implementation issues in attaining sustainability in processes.