The impact of digital transformation on big data analytics and firm’s sustainability performance in a post-pandemic era

Abstract

BACKGROUND: COVID-19 caused an exogenous shock to global economies, businesses and people. However, digitalization is also helping many companies adapt and overcome the reality of COVID-19. The fact that people and companies are increasingly using technology in their daily lives to deal with this extraordinary situation demonstrates the acceleration of the digitalization process. OBJECTIVE: The aim of this research is to examine the mediating role of Big Data Analytics (BDA) in the relationship between digital transformation (DT) and economic, environmental and social sustainability performance. METHODS: For data analysis and hypothesis testing, partial least squares structural equation modeling (PLS-SEM) was used on 304 managers level employees in small and medium enterprises (SMEs) in Mozambique. RESULTS: The findings show that DT positively affects BDA in Mozambican SMEs. Furthermore, BDA positively impacts economic and environmental performance. In addition, BDA has a significant mediating role in the association between DT and economic and environmental performance. However, this relationship is insignificant regarding social performance. CONCLUSIONS: These findings have important implications for SMEs managers and policy makers, who can develop a coherent strategy to realize BDA opportunities, reduce costs and provide strategic value to improve firm sustainability performance in a post-pandemic world.