Do value creation mechanisms mediate the relationship between big data analytics capabilities and innovation? A company governance implication

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Abstract

Telecommunication Service Providers (TSPs) in Sri Lanka are seeking guidance on innovation strategies due to rapid shifts in technology, user behaviour, and market trends. Achieving successful innovation through big data analytics capabilities (BDACs) requires insight into the mediating processes and Value Creation Mechanisms (VCMs) (Grover et al., 2018). Accordingly, this study investigates the impact of BDACs on innovation, with a focus on the mediating role of VCMs. Despite the potential of big data, gaps remain in understanding the connections between the capabilities of big data and firm-level innovation outcomes (Appio et al., 2021). This study employs the positivistic research paradigm with a deductive approach. Ninety-one (91) executive-level employees were selected using the snowball sampling technique. Correlation and regression analyses were used to evaluate the data in the Statistical Package for the Social Sciences (SPSS). The findings revealed that there is a strong positive interrelationship among BDACs, innovation, and VCMs, and further, it was proved that BDACs have a significant impact on innovation, and this effect is partially mediated by VCMs. Consequently, the study concludes that BDACs empower TSPs to generate insights that activate or enhance their VCMs, thereby fostering greater innovation.

Keywords: Big Data Analytics Capabilities (BDACs), Innovation, Value Creation Mechanisms (VCMs)

Authors’ individual contribution: Conceptualization — N.L. and A.A.A.; Methodology — N.L. and A.A.A.; Data Curation — N.L. and T.S.; Resources — N.L., T.S., and A.A.A.; Writing — Original Draft — N.L. and T.S.; Writing — Review & Editing — T.S.; Supervision — A.A.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: L86, O32, M15, D83, L96

Received: 19.07.2024
Revised: 08.11.2024; 11.12.2024; 01.05.2025
Accepted: 02.06.2025
Published online: 05.06.2025

How to cite this paper: Namasivayam, L., Sellar, T., & Arulrajah, A. A. (2025). Do value creation mechanisms mediate the relationship between big data analytics capabilities and innovation? A company governance implication [Special issue]. Journal of Governance & Regulation, 14(2), 324–332. https://doi.org/10.22495/jgrv14i2siart11