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PurposeThis article examines the mechanisms through which big data analytics capabilities (BDAC) contribute to creating sustainable value and analyzes the mediating roles that supply chain management capabilities (SCMC), as well as circular economy practices (CEP), play through their impact on sustainable performance.Design/methodology/approachFollowing a literature review, a serial mediation model is presented. Hypotheses regarding direct and mediating relationships are tested to determine their potential for sustainability impact and circularity. Partial least squares structural equation modeling (PLS-SEM) has been applied for causal and predictive purposes.FindingsThe results indicate that big data analytics capabilities do not have a direct positive impact on sustainable performance but influence indirectly through SCMC and CEP.Originality/valueAlthough some authors have addressed the associations between IT business value, supply chain (SC), and sustainability, this paper provides empirical evidence related to these relationships. Additionally, this study performs novel predictive analyses.

AbstractDrawing on the information technology (IT)‐enabled capabilities perspective, this study develops a model that extends our knowledge of the mechanisms through which IT contributes to business value. Specifically, we provide new insights to the stream of research that proposes organizational agility to be a higher order capability enabled by information systems (IS) capabilities that impacts firm performance, and we test the contingency effect of an important environmental factor—the technology intensity of the industry. To empirically study the proposed relationships, data were collected from 153 Spain‐based firms and analyzed using a partial least squares structural equation modeling. The results indicate that IS capabilities positively affect firm performance through the full mediation of organizational agility. Furthermore, a multigroup analysis reveals that the impact of IS capabilities on organizational agility is greater for companies in high‐tech intensity industries than for those in medium‐tech intensity industries. An important implication is the identification of some capabilities that might jointly enhance firm performance through their interplay, as well as the external environmental factors that influence these relationships. When designing firms' IT strategies, managers seeking to optimize firm performance should embed appropriate IS capabilities into the key business processes to enable an agile response in the organization.