Impact of big data usage on product and process innovation: the role of data diagnosticity

Abstract

PurposeIn today's business environment, big data is viewed as the “new oil,” which is rapidly changing the traditional business models and mode of operations. According to commentaries and scholarly work, big data and its applications have penetrated deeply into the very core of the products, services, and functional areas of many firms. What remains unclear is how using this “new oil” (big data) and “new technique” (data diagnosticity) can result in new “products and processes.” The purpose of this paper is to examine the effects of big data usage on product and process innovation, and the moderating role of data diagnosticity on said associations.Design/methodology/approachData were obtained from Turkish firms that utilize big data in their daily operations and analyzed with the partial least squares' structural equation modeling technique.FindingsThe findings revealed that big data usage is a predictor for higher product and process innovation. Diagnostic capabilities of the firms did not amplify the link between big data usage and product innovation, big data usage and process innovation.Originality/valueThis paper is among the first study to examine the association of big data usage, data diagnostic capabilities, product, and process innovations in the Turkish context. Implications for theory and practice are discussed.