How does data analytics capability affect sustainability performance?

Purpose Firms invest in digital technologies to build data analytics capability, expecting to achieve both high financial and environmental performance. However, firms still struggle to achieve such dual goals. The knowledge about how and when data analytics capability contributes to sustainability performance remains limited. Drawing on the dynamic capability perspective, we examine how big data analytics capability affects firms’ financial and environmental performance through green supply chain management (i.e. eco-design, green purchasing and green manufacturing) under various levels of regulatory uncertainty. Design/methodology/approach Using multi-respondent survey data from 374 Chinese firms, we used partial least squares structural equation modeling to test hypotheses. Findings We find that eco-design and green manufacturing mediated the relationship between data analytics capability and sustainability performance (i.e. financial and environmental performance). Regulatory uncertainty positively moderated the relationship between data analytics capability and green supply chain management. Practical implications Firms aiming to achieve superior sustainability performance should pay sufficient attention to developing data analytics capability and take action to transform such capability into eco-design and green manufacturing practices, particularly when the regulatory environment is highly uncertain. Originality/value This study enriches the literature on big data value and green supply chains by revealing the mediation effects of different types of green supply chain management in the relationship between data analytics capability and sustainability performance under various levels of regulatory uncertainty.