Big Data as an Equalizer: Driving Business Model Innovation Through Serial Mediation Mechanisms

Abstract

This study investigates the mechanisms through which Big Data Analytic Capability (BDAC) translates into Business Model Innovation (BMI) in the auditing profession, specifically examining serial mediation pathways and the moderating role of Digital Leadership. Drawing on the Dynamic Capabilities View and Open Innovation theory, empirical data collected from 301 managers across auditing firms in Vietnam were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that BDAC fosters BMI through a complex serial mediation involving Absorptive Capacity (ACAP), Inbound Open Innovation, and Value Co-creation. Furthermore, Digital Leadership significantly amplifies BDAC's impact on organizational learning. Notably, while organizational scale (Big 4 vs. Non-Big 4) influences the final BMI outcome, it does not determine ACAP, indicating that the fundamental ability to assimilate digital knowledge is scale-independent. This research provides a novel contribution by demonstrating that data-driven capabilities act as an "equalizer", allowing smaller firms to compete on "intellectual scale" rather than "organizational scale". Ultimately, it offers a strategic roadmap for professional service firms to successfully transition from traditional assurance to data-driven advisory.