Digital drivers of circularity: examining the mediating role of big data analytics capabilities in the blockchain-circular economy nexus

Abstract The rapid growth of electric vehicles has intensified concerns regarding the sustainable management of battery materials, creating an urgent need for effective circular economy implementation within EV batteries. Although blockchain technology has been widely recognized for improving transparency, traceability, and information sharing, limited research explains how blockchain technology enabled information is transformed into circular economy implementation. The mediating role of big data analytics capabilities remains underexplored, and empirical evidence from the EV battery manufacturing sector is scarce. To address this gap, this study integrates the technology–organization–environment framework and dynamic capability theory to examine the relationships among BCT, BDAC, and CEI. Using a quantitative research design, data were collected from 420 production managers employed in China’s EV battery manufacturing industry and analyzed using partial least squares structural equation modeling (PLS-SEM). The findings indicate that blockchain technology establishes a reliable technological foundation for circular initiatives, while BDAC plays a pivotal role in transforming digital information into effective circular economy implementation. The results further reveal that the contribution of blockchain to CEI is substantially strengthened through the development of analytical capabilities. By integrating TOE and DCT, this study extends existing knowledge on digital sustainability and demonstrates that technological investments alone are insufficient to achieve circular outcomes without the organizational capabilities required to leverage them effectively. The study offers important theoretical insights for digital transformation research and practical guidance for managers seeking to enhance resource efficiency and sustainability performance in EV battery manufacturing.