Explorative or exploitative innovation? The moderating effect of big data marketing capability

Purpose This study aims to examine the role of big data marketing capability (BDMC) in shaping firms’ innovation behavior within the context of digital innovation. By defining BDMC and identifying its core dimensions, the study provides a framework for understanding how BDMC moderates the inverted U-shaped relationship between two key types of innovation – explorative and exploitative innovation – and their impact on innovation performance. Design/methodology/approach BDMC is conceptualized through five key dimensions: (1) big data-driven specialized marketing capability, (2) big data-driven customer relationship management (CRM) capability, (3) big data-driven channel and alliance management capability, (4) big data-driven brand management capability and (5) big data-driven market information and knowledge capability. A refined measurement scale for BDMC is developed based on these dimensions. Using hierarchical regression analysis and U-shaped tests, this study investigates how BDMC moderates the nonlinear (inverted U-shaped) relationship between explorative and exploitative innovation and innovation performance. Empirical analysis is conducted using data from 151 firms in the Chinese automotive manufacturing industry. Findings The results confirm the distinct effects of explorative and exploitative innovation on innovation performance, with these relationships significantly moderated by BDMC. Under experience-driven marketing capability, explorative innovation exhibits a positive linear effect on performance, while exploitative innovation follows an inverted U-shaped pattern. However, with BDMC, the relationship between explorative innovation and performance shifts to an inverted U-shape, while exploitative innovation transitions from an inverted U-shape to a U-shape, highlighting BDMC’s moderating role. Originality/value This study advances the literature by clearly defining BDMC, refining its measurement scale and assessing its moderating influence on innovation strategies. It contributes to the behavioral theory of the firm, the capability-based view and digital innovation theory by positioning BDMC as a pivotal capability that shapes firms’ ability to balance explorative and exploitative innovation. The study provides practical insights for firms undergoing digital transformation, offering a strategic framework for leveraging BDMC to enhance innovation performance.