Strategic orientations and innovation performance in Bangladeshi SMEs: Dual role of big data analytics and innovation capabilities

Abstract

This study investigates how innovation performance (IP) in Bangladeshi manufacturing SMEs is affected by three strategic orientations: entrepreneurial (EO), digital (DO), and environmental (E2O).  In addition to examining the moderating influence of big data analytics (BDA) and the mediating function of innovation capabilities (IC)  , it further uniquely integrates these perspectives.  Through the application of structural equation modeling, data from 369 managers in textile SMEs (weaving, spinning, and dyeing) were evaluated. The data reveal that whilst E2O has no direct influence on IP, whereas EO and DO have a beneficial impact  .  All three orientation-IP interactions are favorably mediated by IC.  BDA has no discernible impact on the E2O-IP relationship, but it does strengthen the EO-IP and DO-IP relationships. Even though EO, DO, IC, and BDA have been shown to improve invention, little is known about how they work together. As the survey suggests on fostering innovation, SMEs are expected to focus on BDA, digital, entrepreneurial, and even environmental strategies. This paper outlines actionable recommendations aimed at policymakers, practitioners, and the managers.