Toward Business Process Innovation in the Big Data Era: A Mediating Role of Big Data Knowledge Management

While recent debate recognizes the importance of big data (BD) and knowledge management (KM) in firm performance, there has been a paucity of literature regarding big data analytics technological (BDAT) and knowledge exploration-exploitation capabilities (KEEC) in the context of business process innovation (BPI). This study aims to identify whether BD and KM can be established in these emerging issues. We used a survey questionnaire to collect data from various firms and industries. We used structural equation modeling (SmartPLS and SPSS) to validate the research model with a sample of 155 companies in a developing country such as Indonesia. The result demonstrates a positive relationship between KEEC and BPI, followed by several significant findings such as BDAT with KEEC; KEEC on big data knowledge management (BDKM); BDKM and BPI; and BDAT on BDKM. In contrast, BDAT is nonsignificant for direct relationship on BPI, and interestingly, it becomes a significant result after mediated by BDKM. Similarly, BDKM has successfully mediated the relationship between KEEC and BPI. The management level ideally develops and increases such a knowledge creation/acquisition practices and BDAT in an organization to gain more meaningful benefits from these two capabilities. BDAT, KEEC, and BDKM simultaneously are a clear antecedent approach, which ultimately results in flexibility, effectiveness, and effectivity of BPI. The cases of this research are profit firms in a developing country such as Indonesia. A future study could be considered in different settings such as type of industries or more specific company's type, the economy level of countries (comparing between developed and developing countries), and environmental dynamical. A novel field of study is the inclusion of knowledge exploration-exploitation and BDAT that drives BPI.