Unveiling the relationship of big data analytics capability and performance: the role of strategic orientation ambidexterity and team characteristics

Purpose Although research demonstrates that big data analytics capability (BDAC) plays a vital role in improving firm performance, the mechanisms and conditions behind this relationship remain unclear. To address this gap, this study explores the mechanism and conditions by testing the mediating role of strategic orientation ambidexterity and examining the moderating role of team heterogeneity and team reflexivity. Design/methodology/approach This study applies ambidexterity theory and upper echelons theory as the theoretical lenses and uses a structural equation modeling approach to empirically test the proposed model with the cross-sectional survey data from 350 Chinese firms. Findings Strategic orientation ambidexterity positively mediates the relationship between BDAC and firm performance. In addition, both team heterogeneity and team reflexivity not only strengthen the direct effect of BDAC on strategic orientation ambidexterity but also positively moderate the indirect effect of strategic orientation ambidexterity. Originality/value This study not only narrows the knowledge gap left by earlier work that overlooked identifying the mechanism of the relationship between BDAC and firm performance from an ambidextrous perspective but also extends the managerial literature by addressing internal conditions. It offers theoretical insights for managers to improve firm performance by aligning BDAC, multiple strategic orientations and team members’ characteristics.