Unpacking the Role of Big Data Analytics Capability in Sustainable Business Performance: Insights from Digital Sustainability Reporting Readiness in Latvia

A fundamental debate among sustainable development researchers and practitioners is whether, and through what mechanisms, sustainability contributes to gaining a competitive advantage. To address this consideration, this study draws on the general systems theory (GST), organisational information processing theory (OIPT), resource-based theory and recent studies on big data analytics capability (BDAC), digitalisation, sustainability, digital sustainability reporting (DSR), and business performance. A comprehensive research model was developed to assess the interrelationships and mediating effects of the mentioned constructs; the analyses utilised a sample of 75 large Latvian organisations preparing for the first reporting under Corporate Sustainability Reporting Directive. The results obtained using partial least squares structural equation modelling contribute to the theory by revealing that digital sustainability reporting fully mediates the relationship between sustainability and business performance. Moreover, BDAC emerges as a fundamental enabler, forming the foundation of a “house” where digitainability and DSR serve as its walls and enhanced business performance as its roof. This study also contributes to the sustainability and sustainability accounting literature by presenting a sustainable business development framework that offers practical insights for organisations navigating the integration of sustainability reporting in highly uncertain environments.