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Advancing the Upper Echelon Theory with Environmental Dynamism and Big Data Analytics Capabilities

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Technology-Driven Business Innovation

Part of the book series: Studies in Systems, Decision and Control ((SSDC,volume 223))

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Abstract

This study seeks to establish a connection between big data analytics capabilities (BDAC) on both environmental dynamism (ED) and technological orientation (TO), utilizing the framework of the upper echelon theory. This research attempts to fill the existing gap in knowledge on this relationship. Furthermore, this research examines the potential moderating effects of top management team with information and technology degree (TMT IT) on the relationship between technological orientation (TO) and strategic outcome (SO). Additionally, it investigates the mediating function of ED in the relationship between BDAC and TO. The research study employed a panel data research design from audited financial statements from mining companies in three ASEAN economies namely Indonesia, Malaysia, and Thailand from 2010 until 2021. The results of the study indicate that BDAC has a favorable and significant effect on both ED and TO, hence exerting a beneficial influence on SO. The moderation effect of the TMT IT enhances the correlation between TO and SO. The link between BDAC and SO is partially mediated by ED. The research recommends that companies allocate significant resources toward enhancing the technological components of BDAC amid high environmental dynamism. This competence enables organizations to effectively monitor and predict changes in customer behavior, competitor actions, and market demands.

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Acknowledgements

The author feels grateful for the research support from the Mae Fah Luang University.

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Authors and Affiliations

  1. Mae Fah Luang University, Chiang Rai, 57100, Thailand

    Dzakiyy Hadiyan Achyar

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  1. Dzakiyy Hadiyan Achyar
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Correspondence to Dzakiyy Hadiyan Achyar .

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  1. Adnan Kassar School of Business, Lebanese American University, Byblos, Lebanon

    Rim El Khoury

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Achyar, D.H. (2024). Advancing the Upper Echelon Theory with Environmental Dynamism and Big Data Analytics Capabilities. In: El Khoury, R. (eds) Technology-Driven Business Innovation. Studies in Systems, Decision and Control, vol 223. Springer, Cham. https://doi.org/10.1007/978-3-031-51997-0_12

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