The effects of business analytics capability on circular economy implementation, resource orchestration capability, and firm performance

Today, most organizations are undergoing a digital transformation. At the same time, gravity of environmental issues has put sustainability and circular economy at top corporate agendas. To this end, information systems, in particular business analytics, being highlighted as essential enablers an accelerated transition. However, effectively managing joint transformation is challenge. Firms struggle to identify which organizational resources they should target how those be leveraged towards firm-wide analytics capability for economy. address these questions, study draws on recent literature dealing with smart capabilities along resource-based resource orchestration view (1) create instrument measure firms’ economy, (2) examine relationship among economy-specific capability, implementation, firm performance. The proposed research model was tested using partial least squares structural equation modeling survey data from 125 top-level managers companies across Europe. results show that firms strong have increased greater ability excel resulting improved performance building more sustainable competitive advantage increasingly landscape. effect not direct but fully mediated through implementation. empirically validate offer pathways future systems streams support operationalization strategies. provides first empirical evidence its