Big data analytics capability and breakthrough innovation: the mediating role of technological opportunism and the moderating effect of proactive market orientation

Purpose Building on dynamic capabilities theory (DCT), this study analyzes the role of big data analytics capability (BDAC) in fostering breakthrough innovation (BI). The study asserts that the influence of BDAC on BI is mediated by technological opportunism (TO; a higher-order capability that enables firms to sense and respond to new technologies). Additionally, it also examines the moderating of proactive market orientation (PMO) in the interplay between TO and BI. Design/methodology/approach The research employs DCT as a foundational theory to establish relationships among the study variables. Using survey data from 247 high-tech manufacturers in Pakistan, PLS-SEM via WarpPLS 8.0 is employed to analyze the study’s measurement model and structural model. Findings The authors find that BDAC positively influences both BI and TO, and that TO also positively influences BI. Moreover, it is found that TO mediates the relationship between BDAC and BI, underlining the important role of TO in translating insights extracted through BDAC into BI. In addition, our results reveal that PMO positively moderates the impact of TO on BI, highlighting the fact that firms having stronger PMO are better positioned to effectively leverage TO to achieve BI. Originality/value To our knowledge, this study is the first to not only explore the role of BDAC in BI but also position TO as a key mediator that facilitates firms in translating BDAC-extracted insights into BI. Moreover, it offers fresh insights on how a firm’s PMO can amplify the effectiveness of its TO in nurturing BI.