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Related Experiment Video

Updated: Aug 20, 2025

The Innovation Arena: A Method for Comparing Innovative Problem-Solving Across Groups
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Linking data-driven innovation to firm performance: a theoretical framework and case analysis.

David T W Wong1, Eric W T Ngai1

  • 1Department of Management and Marketing, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong, People's Republic of China.

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Summary

Data-driven innovation (DDI) positively impacts firm performance in China's textile industry. Both individual and organizational contexts influence DDI, which in turn enhances overall business success.

Keywords:
Case studyData-driven innovationFirm performanceLiterature reviewOrganizational and individual context

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Area of Science:

  • Business and Management
  • Innovation Studies
  • Industrial Economics

Background:

  • Data-driven innovation (DDI) is increasingly crucial for competitive advantage.
  • Understanding the contextual factors influencing DDI is essential for its successful implementation.
  • Firm performance is a key metric influenced by strategic innovation initiatives.

Purpose of the Study:

  • To examine the impact of data-driven innovation on firm performance.
  • To explore the influence of contextual variables on data-driven innovation.
  • To propose and validate a theoretical framework for DDI in a manufacturing context.

Main Methods:

  • Exploratory case study of a manufacturing firm in China's textile and apparel industry.
  • Analysis of the relationship between contextual variables and DDI.
  • Validation of a theoretical framework linking context, DDI, and firm performance.

Main Results:

  • Individual context demonstrated a significant association with data-driven innovation.
  • Organizational context was also found to be associated with data-driven innovation.
  • Data-driven innovation showed a positive association with improved firm performance.

Conclusions:

  • Data-driven innovation significantly enhances firm performance.
  • Both individual and organizational contexts are critical enablers of DDI.
  • Firms should align their DDI strategies with their specific contextual environment for optimal results.