Leveraging Business Analytics and Knowledge-Based HRM Practices to Enhance Organizational Agility and Drive Innovation Performance

Abstract

The main aim of this study is to evaluate how new Business Analytics (BA) technologies can improve knowledge management in HRM and influence innovation output. The researchers will use a quantitative method by distributing an online questionnaire to professionals in the pharmaceutical field. Information will be collected on how BA, new knowledge in Human Resource Management (HRM), agility, and innovation influence the organization's results accordingly. This study uses PLS-SEM for reliability and hypothesis validation. The findings of this study empirically validate the study's hypotheses, confirming a significant and positive effect on BA, knowledge-based HRM (KBHRM) practices, and Organizational Agility (OA) on innovation performance (IP). This study suggests that it is essential for innovation performance to consider the following determinants: BA, KBHRM practices, and OA; all hypotheses received strong empirical support. The regression model confirms that these factors jointly account for a significant portion of the variance in innovation outcomes. The findings of this study suggest that managers are looking to improve the organizational IP. The senior leadership should lead the integration of BA into the strategic decision-making process at an organization by investing in cutting-edge analytical tools, the development of data competency within teams, and the definition of key performance indicators (KPIs) that link analytics efforts to the outcomes of innovation. Practical conclusions highlight organizations interested in improving the performance of innovation via BA, KBHRM practices, and OA. Arguably, firms should focus their investments on developing BA capabilities, such as advanced data processing tools and employees' data literacy, to facilitate evidence-based decision-making and drive innovation.