Examine the influence of collaborative business culture and data-driven analytic capability on business innovation: Moderation role of managerial capability

Abstract

The literature has predominantly overlooked the significant combined influence of data-driven analytic capability (DDAC) alongside managerial capability and a collaborative business culture (CBC) on business innovation, despite advancements in DDAC within certain organisations. Therefore, this study examines the relationship between DDAC, CBC, and business innovation while exploring the moderating effect of managerial capability. Data from 577 managers were collected via a survey questionnaire. Research hypotheses were tested using a consistent Partial Least Squares Structural Equation Modeling (PLS-SEM) algorithm alongside bootstrapping methodology. Findings indicate that DDAC positively influences CBC, business innovation, and collaborative business culture. Additionally, a collaborative business culture has a positive impact on business innovation and partially mediates the relationship between DDAC and business innovation. Most importantly, the study reveals that combining managerial capability and DDAC has a less notable impact on CBC than on DDAC alone. However, the joint effect of managerial capability and CBC is stronger than CBC alone on business innovation. Theoretical and managerial implications are extensively discussed.