Impacts of big data analytics adoption on firm sustainability performance

Abstract

Purpose This study aims to examine the impacts of adopting big data analytics (BDA) on firm sustainability performance (FSP) mediated through firm financial performance (FIP) and operational performance (OPP). Design/methodology/approach A theoretical model is based on ideas from existing literature on BDA, sustainability, FIP, dynamic capability view theory and resource capability view theory. The model is then validated using the partial least squares–structural equation modeling technique with consideration of 312 responses from 24 Indian firms. Findings The study provides three important findings. First, there is a significant and positive impact of BDA on firms’ financial and OPP. Second, BDA significantly and positively impacts firm business process performance (BPP) and dynamic capabilities (DYC), which, in turn, significantly impacts the firm’s financial and OPP. Finally, both the financial and OPP of the firm significantly and positively impact sustainability performance. Research limitations/implications This theoretical model is unique in showing the impacts of BDA on BPP, firm DYC, financial and OPP. The study also shows how BDA can enhance FSP by mediating through financial as well as the OPP of the firms. The study uses data only from India and thus the proposed model cannot be generalizable. Originality/value This study provides valuable input to researchers, academicians and industry practitioners on the importance of BDA for FSP. The study also adds value to the body of knowledge on sustainability, FIP and technology adoption. The proposed unique theoretical model has an explanative power of 70%, which is quite high and can be used across different industries.