Institutional pressure and responsible innovation: how big data analytics adoption drives manufacturing SMEs toward competitiveness

PurposeThis study aims to examine the influence of regulatory framework (RF), market dynamism (MDY), competitive intensity (CIN) and environmental public concern (EPC) on responsible innovation (RI) in the manufacturing SMEs of a developing country. Furthermore, the study examines the influence of RI on sustainable competitive advantage (SCA). Moreover, big data adoption (BDA) is used as a moderator between RI and SCA.Design/methodology/approachThe study's hypotheses are evaluated using the structural equation modeling methodology. The study collected data from a sample of 487 owners/managers of manufacturing SMEs using simple random sampling technique.FindingsThe results explain that RF, MDY, CIN and EPC significantly determine RI. Moreover, RI significantly determines SCA. Besides, BDA significantly moderates between RI and SCA.Research limitations/implicationsFor manufacturing SMEs to obtain SCA, RI is essential, and BDA is crucial to meet changing consumer demands for environmentally friendly products. With more environment-friendly initiatives, the natural environment will become more sustainable. Moreover, this research offers a comprehensive perspective to the public regarding the extent to which manufacturing enterprises are adopting RI and BDA.Originality/valueThe majority of earlier research on RI and BDA has been carried out in the context of large businesses. Institutional theory was used to look into the drivers of RI. Furthermore, BDA is used as moderating variable between RI and SCA.