Linking big data analytics capability, circular economy capabilities and organizational performance: moderating role of market turbulence

Abstract

Purpose Drawing upon the dynamic capability view (DCV), the current study aims to examine the relationships between big data analytics (BDA) capability, circular economy capabilities (CEC) and organizational performance (OP). In doing so, it explores if market turbulence (MT) moderates these relationships. Design/methodology/approach Data were collected by a questionnaire survey from 300 manufacturing organizations. Structural equation modeling (SEM) was used to test the hypotheses. Findings BDA capability was positively related to CEC and OP. MT moderated the relationship between BDA capability and CEC. However, a negative moderation effect of MT was revealed in linking CEC and OP. This showed that when MT was low, higher CEC equated to lower OP. However, when the level of MT was moderate or very high, MT equated to higher OP. Moreover, MT did not significantly moderate the relationship between BDA capability and OP. This implies that developing BDA capability is beneficial for the organizations for improving OP regardless of the level of MT. Research limitations/implications Though conducted in a developing country context, the study's findings offer crucial implications that need further investigation in future research. The current study employs DCV and argues that MT can variously affect the relationship between BDA, CEC and OP. The level of MT is an important determinant in the strategic approach of an organization, as they need to be aware of market changes as well as the contextual complexities of their target markets. Practical implications Managers operating in less developed contexts face challenges in terms of leveraging the latest technologies to achieve CEC. This highlights the need to better understand the level of MT when devising an approach to leverage technology for CEC. Other important factors to consider include employees' training, integrating sustainability and data streams at every stage of the supply chain and gaining team buy-in and easing the transition process. Originality/value No previous research explores how MT moderates the relationship between BDA capability, CEC and OP. The current paper attempts to address this gap in the literature and contributes to the existing debate to better understand the conditions in which BDA capability affects OP. Various avenues for future research are also identified.