The Nexus between Business Analytics Capabilities and Knowledge Orientation in Driving Business Model Innovation: The Moderating Role of Industry Type

Abstract

The importance of business analytics (BA) in driving knowledge generation and business innovation has been widely discussed in both the academic and business communities. However, empirical research on the relationship between knowledge orientation and business analytics capabilities in driving business model innovation remains scarce. Drawing on the knowledge-based view and dynamic capabilities theory, this study develops a model to investigate the interplay between knowledge orientation and BA capabilities in driving business model innovation. It also explores the moderating role of industry type on this relationship. To test the model, data were collected from a cross-sectional sample of 207 firms (high-tech and non-high-tech industries). Descriptive and structural equation modeling (SEM) were used to test the hypotheses. The findings showed that knowledge orientation and BA capabilities are significantly and positively related to business model innovation. Knowledge commitment, shared vision, and open-mindedness are significantly and positively related to BA perception and recognition capabilities and BA integration capabilities. BA capabilities mediated the relationship between knowledge orientation and business model innovation. The path mechanism of knowledge orientation → BA capabilities → business model innovation shows that industry type has a moderating effect on knowledge orientation and BA capabilities, as well as BA capabilities and business model innovation. This study provides empirically proven insights and practical guidance on the dynamics and mechanisms of BA and organizational knowledge capabilities and their impact on business model innovation.