Does big data enhance firm innovation competency? The mediating role of data-driven insights

Grounded in gestalt insight learning theory and organizational learning theory, we collected data from 280 middle and top-level managers to investigate the impact of each big data characteristic (i.e., data volume, data velocity, data variety, and data veracity) on firm innovation competency (i.e., exploitation competency and exploration competency), mediated through data-driven insight generation (i.e., descriptive insight, predictive insight, and prescriptive insight). Findings show that while data velocity, variety, and veracity enhance data-driven insight generation, data volume does not impact it. Additionally, results of the post hoc analysis indicate that while descriptive and predictive insights improve innovation competency, prescriptive insight does not affect it. These results provide interesting and unique theoretical and practical insights.