Download this Paper Open PDF in Browser

Data Analytics Skills, Innovation and Firm Productivity

41 Pages Posted: 8 Mar 2016 Last revised: 1 Mar 2017

Lynn Wu

University of Pennsylvania - The Wharton School

Lorin M. Hitt

University of Pennsylvania - Operations & Information Management Department

Bowen Lou

University of Pennsylvania - The Wharton School

Date Written: February 28, 2017

Abstract

We examine the relationship between data analytics capabilities and innovation using detailed firm-level data. To measure innovative activity, we utilize a survey on process- and innovation- oriented business practices, and we use patent data to analyze the innovative output and characteristics of firms. We find that data analytics capabilities are more likely to be present and are more valuable in firms that are oriented around process improvement and that innovate by recombining existing technologies; data analytics skills have no effect on or are possibly negatively related to value in firms that focus on generating creative and truly novel innovations. We interpret these findings as consistent with data analytics skills being complementary to the exploitation rather than exploration strategies as described in the technology strategy literature.

Suggested Citation

Wu, Lynn and Hitt, Lorin M. and Lou, Bowen, Data Analytics Skills, Innovation and Firm Productivity (February 28, 2017). The Wharton School Research Paper No. 86. Available at SSRN: https://ssrn.com/abstract=2744789

Lynn Wu (Contact Author)

University of Pennsylvania - The Wharton School ( email )

3733 Spruce Street
Philadelphia, PA 19104-6374
United States

Lorin M. Hitt

University of Pennsylvania - Operations & Information Management Department ( email )

571 Jon M. Huntsman Hall
Philadelphia, PA 19104
United States
215-898-7730 (Phone)
215-898-3664 (Fax)

Bowen Lou

University of Pennsylvania - The Wharton School

3730 Walnut Street
Philadelphia, PA 19104
United States

Paper statistics

Downloads
322
Rank
77,844
Abstract Views
1,025