The effects of it capability and data analytics on firm performance through market orientation and innovation

Abstract

In the rapid change of business environment nowadays, businesses need to enhance the operation for gaining competitive advantages and improvement of firm performance. According to the concept of the resource-based view (RBV) perspective, IT capability and data management are considered as the prominent tools for the business operation. In addition, marketing concepts and innovation also help businesses to be more productive. This study investigated the effects of IT capability and data analytics on firm performance through market orientation and innovation in the manufacturing industry in Thailand. This study used a mixed methods approach in which the data were collected and analyzed quantitatively and qualitatively. The quantitative method employed a cross-sectional and mail survey. The questionnaire was administered to collect the survey data which were analyzed by using the structural equation model (SEM) analysis. The qualitative method involved in-depth interviews with executives or IT leaders. There were 230 respondents from the mail survey. The empirical findings from this study were consistent with a number of studies in the literature. The findings revealed that IT capability and data analytics had effects on firm performance through market orientation and innovation. Market orientation also affected firm performance through innovation. The results conformed to the RBV perspective and emphasized the importance of IT capability and data analytics. For further research, it is recommended to change the population to other business sectors. Data analytics can also be expanded to big data technology in the future. Moreover, it is useful to refine the conceptual model drawn from this research by building a different construct of IT capability and firm performance.