How does information technology capabilities affect business sustainability? The roles of ambidextrous innovation and data‐driven culture

• Published in: R & D management Vol. 54; no. 4; pp. 750 - 774
• Main Authors: Lee, Voon‐Hsien, Dwivedi, Yogesh K., Tan, Garry Wei‐Han, Ooi, Keng‐Boon, Wong, Lai‐Wan
• Format: Journal Article
• Language: English
• Published: Oxford Blackwell Publishing Ltd 01.09.2024
• Subjects: Information technology; Innovations; Operations management
• ISSN: 0033-6807; 1467-9310
• DOI: 10.1111/radm.12596

This research investigates explicitly how Information technology capability (ITC) can be tailored to achieve business sustainability via ambidextrous innovation in a turbulent environment. Moreover, the moderating factor of a data‐driven culture (DDC) is also being investigated. The research model was built on the theoretical foundations of the resource‐based view (RBV), dynamic capabilities view and existing IT capabilities literature. Through a close‐ended survey questionnaire from approximately 254 IT personnel in managerial positions working in the manufacturing industry, partial least squares‐structural equation modelling‐artificial neural network (PLS‐SEM‐ANN) is applied. Notably, the result indicated that ITC positively influences IT‐enabled dynamic capabilities (ITDC), which positively impacts ambidextrous innovations and helps manufacturing firms achieve business sustainability. Meanwhile, the moderating role of DDC between ITDC and exploitative innovation was also found. The results showed that ANN models A, B, C and D are consistent for both analysis. This study provides several novel additions to the literature on operations management and information systems (IS) researchers. IS researchers should focus on leveraging ITC to enable and support organisational capabilities rather than the direct effects of IT expenditures. Additionally, the importance of a DDC has seldom been explored together previously. Thus, this study fills gaps in existing knowledge, along with significant insights, specifically for future IT implementation. As for practical implications, this study provides corporate leaders and executives with insights about how to leverage their resources and customise their ITC in an unpredictable and volatile business environment.