Boundary-spanning search and breakthrough innovation: the moderating role of big data analytics capability

Purpose The rapid advancement of digital transformation requires a shift in firms’ focus from past met needs to both latent future and unmet past needs. However, how boundary-spanning search with future orientation and past orientation affects breakthrough innovation remains unclear. This study thus aims to investigate the relationship between boundary-spanning search and breakthrough innovation from the perspective of search orientation. Design/methodology/approach In terms of search orientation, this study divides boundary-spanning search into forward-looking search and backward-looking search. Drawing on resource-based view, this study develops a theoretical model in which big data analytics capability moderates the effects of forward-looking and backward-looking searches on breakthrough innovation. Empirical analyses were conducted on data from China’s advanced manufacturing firms. Research model and hypotheses were tested through multiple regression. Findings The results confirm that forward-looking search has a positive effect on breakthrough innovation, and big data analytics capability strengthens this positive effect. Furthermore, backward-looking search has an inverted U-shaped effect on breakthrough innovation. Interestingly, as big data analytics capability increases, this inverted U-shaped curve flattens and becomes almost linear. Originality/value This study uncovers the different effects of boundary-spanning search with different orientations on breakthrough innovation and extends the research on the relationship between boundary-spanning search and breakthrough innovation by incorporating search orientation. Furthermore, by demonstrating the moderating role of big data analytics capability, this study provides a crucial condition under which boundary-spanning search can enhance breakthrough innovation.