Analytics, Innovativeness, and Innovation Performance

Based on organizational information processing theory, this paper develops and tests a research model to deepen the understanding about the conditions under which the use of data analytics contributes to innovation performance. This paper suggests that firm innovativeness, as an organization cultural concept, should moderate the relationship between data analytics use and innovation performance. The results of a moderation analysis based on data from cross-sectional survey support this account. The findings indicate a significant inversely U-shaped effect of innovativeness on the relationship between data analytics use and innovation performance. The effect of data analytics use on innovation performance is strongest under medium levels of innovativeness but comparatively weaker when firms have a low or a high level of innovativeness. These insights contribute to the IS literature by clarifying the important role of firm cultural factors in shaping information needs and deployment of information processing capabilities.

Ambidexterity as a dynamic capability: Resolving the innovator’s dilemma

How do organizations survive in the face of change? Underlying this question is a rich debate about whether organizations can adapt—and if so how. One perspective, organizational ecology, presents evidence suggesting that most organizations are largely inert and ultimately fail. A second perspective argues that some firms do learn and adapt to shifting environmental contexts. Recently, this latter view has coalesced around two themes. The first, based on research in strategy suggests that dynamic capabilities, the ability of a firm to reconfigure assets and existing capabilities, explains long-term competitive advantage. The second, based on organizational design, argues that ambidexterity, the ability of a firm to simultaneously explore and exploit, enables a firm to adapt over time. In this paper, we review and integrate these comparatively new research streams and identify a set of propositions that suggest how ambidexterity acts as a dynamic capability. We suggest that efficiency and innovation need not be strategic tradeoffs and highlight the substantive role of senior teams in building dynamic capabilities.

Diffusion of Innovations

Now in its fifth edition, Diffusion of Innovations is a classic work on the spread of new ideas. It has sold 30,000 copies in each edition and will continue to reach a huge academic audience. In this renowned book, Everett M. Rogers, professor and chair of the Department of Communication & Journalism at the University of New Mexico, explains how new ideas spread via communication channels over time. Such innovations are initially perceived as uncertain and even risky. To overcome this uncertainty, most people seek out others like themselves who have already adopted the new idea. Thus the diffusion process consists of a few individuals who first adopt an innovation, then spread the word among their circle of acquaintances–a process which typically takes months or years. But there are exceptions: use of the Internet in the 1990s, for example, may have spread more rapidly than any other innovation in the history of humankind. Furthermore, the Internet is changing the very nature of diffusion by decreasing the importance of physical distance between people. The fifth edition addresses the spread of the Internet, and how it has transformed the way human beings communicate and adopt new ideas.