Business and Social Sciences

Business Analytics Driven Interaction Determined Digital Transformation for Economic Sustainability

Sonia Nashid^1*, Md Nazmuddin Moin Khan²

This study establishes an analytics driven communication and numerical alteration improve financial sustainability, supervisory firms near efficiency, innovation, and development.

Abstract

Background: The United States has seen organizations adopt data-driven approaches to improve their operational performance and foster innovation and achieve sustainable economic growth throughout extended timeframes. Business analytics plays a fundamental role in digital transformation which leads to sustainable organizational results.

Methods: A quantitative study design was employed, using a structured questionnaire administered to 285 respondents from U.S.-based manufacturing, service, and IT firms. The study employed a five-point Likert scale to measure how respondents viewed business analytics interaction and digital transformation and economic sustainability. Data analysis took place through SPSS 26 which conducted descriptive statistics and multiple regression analysis after establishing reliability with Cronbach’s alpha scores above 0.80 to study direct and indirect relationships.

Results: The study reveals that business analytics-driven interaction creates a strong effect on digital transformation (β = 0.52, p = 0.042) which then produces a direct positive effect on economic sustainability (β = 0.48, p = 0.031). The relationship between analytics interaction and sustainability is partially mediated by digital transformation (β = 0.35, p = 0.049). The findings indicate that data-driven decision making along with technological innovation and organizational performance generate small or insignificant results.

Conclusion: The study identifies analytics-based interaction and digital transformation as essential elements for achieving economic sustainability in U.S. organizations. The organization needs analytics substructure development and staff exercise agendas and digital system addition to achieve working competence and bear long-term pliability and revolution.

Keywords: Digital transformation, U.S. organizations, Business analytics, Economic sustainability, data-driven decision-making

References

Adams, R., Jeanrenaud, S., Bessant, J., Denyer, D., & Overy, P. (2015). Sustainability-oriented Innovation: A Systematic review. International Journal of Management Reviews, 18(2), 180–205. https://doi.org/10.1111/ijmr.12068

Appelbaum, D., Kogan, A., Vasarhelyi, M., & Yan, Z. (2017). Impact of business analytics and enterprise systems on managerial accounting. International Journal of Accounting Information Systems, 25, 29–44. https://doi.org/10.1016/j.accinf.2017.03.003

Aydiner, A. S., Tatoglu, E., Bayraktar, E., Zaim, S., & Delen, D. (2018). Business analytics and firm performance: The mediating role of business process performance. Journal of Business Research, 96, 228–237. https://doi.org/10.1016/j.jbusres.2018.11.028

Baldassarre, B., Calabretta, G., Bocken, N., & Jaskiewicz, T. (2017). Bridging sustainable business model innovation and user-driven innovation: A process for sustainable value proposition design. Journal of Cleaner Production, 147, 175–186. https://doi.org/10.1016/j.jclepro.2017.01.081

Bose, R., & Luo, X. (2011). Integrative framework for assessing firms’ potential to undertake Green IT initiatives via virtualization – A theoretical perspective. The Journal of Strategic Information Systems, 20(1), 38–54. https://doi.org/10.1016/j.jsis.2011.01.003

Crittenden, V. L., Crittenden, W. F., Ferrell, L. K., Ferrell, O. C., & Pinney, C. C. (2010). Market-oriented sustainability: a conceptual framework and propositions. Journal of the Academy of Marketing Science, 39(1), 71–85. https://doi.org/10.1007/s11747-010-0217-2

D’Amato, D., Droste, N., Allen, B., Kettunen, M., Lähtinen, K., Korhonen, J., Leskinen, P., Matthies, B., & Toppinen, A. (2017). Green, circular, bio economy: A comparative analysis of sustainability avenues. Journal of Cleaner Production, 168, 716–734. https://doi.org/10.1016/j.jclepro.2017.09.053

Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E. A., & Barlow, C. Y. (2017). Business model Innovation for sustainability: Towards a unified perspective for creation of sustainable business models. Business Strategy and the Environment, 26(5), 597–608. https://doi.org/10.1002/bse.1939

Feola, G. (2014). Societal transformation in response to global environmental change: A review of emerging concepts. AMBIO, 44(5), 376–390. https://doi.org/10.1007/s13280-014-0582-z

Frank, A. G., Mendes, G. H., Ayala, N. F., & Ghezzi, A. (2019). Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective. Technological Forecasting and Social Change, 141, 341–351. https://doi.org/10.1016/j.techfore.2019.01.014

Gupta, S., Chen, H., Hazen, B. T., Kaur, S., & Gonzalez, E. D. S. (2018). Circular economy and big data analytics: A stakeholder perspective. Technological Forecasting and Social Change, 144, 466–474. https://doi.org/10.1016/j.techfore.2018.06.030

Kamble, S. S., Gunasekaran, A., & Sharma, R. (2018). Analysis of the driving and dependence power of barriers to adopt industry 4.0 in Indian manufacturing industry. Computers in Industry, 101, 107–119. https://doi.org/10.1016/j.compind.2018.06.004

Kayikci, Y. (2018). Sustainability impact of digitization in logistics. Procedia Manufacturing, 21, 782–789. https://doi.org/10.1016/j.promfg.2018.02.184

Larson, D., & Chang, V. (2016). A review and future direction of agile, business intelligence, analytics and data science. International Journal of Information Management, 36(5), 700–710. https://doi.org/10.1016/j.ijinfomgt.2016.04.013

Legner, C., Eymann, T., Hess, T., Matt, C., Böhmann, T., Drews, P., Mädche, A., Urbach, N., & Ahlemann, F. (2017). Digitalization: opportunity and challenge for the business and information systems engineering community. Business & Information Systems Engineering, 59(4), 301–308. https://doi.org/10.1007/s12599-017-0484-2

Li, L., Su, F., Zhang, W., & Mao, J. (2017). Digital transformation by SME entrepreneurs: A capability perspective. Information Systems Journal, 28(6), 1129–1157. https://doi.org/10.1111/isj.12153

Loebbecke, C., & Picot, A. (2015). Reflections on societal and business model transformation arising from digitization and big data analytics: A research agenda. The Journal of Strategic Information Systems, 24(3), 149–157. https://doi.org/10.1016/j.jsis.2015.08.002

Luthra, S., & Mangla, S. K. (2018). Evaluating challenges to Industry 4.0 initiatives for supply chain sustainability in emerging economies. Process Safety and Environmental Protection, 117, 168–179. https://doi.org/10.1016/j.psep.2018.04.018

Menguc, B., Auh, S., & Ozanne, L. (2009). The Interactive Effect of Internal and External Factors on a Proactive Environmental Strategy and its Influence on a Firm’s Performance. Journal of Business Ethics, 94(2), 279–298. https://doi.org/10.1007/s10551-009-0264-0

Mikalef, P., Boura, M., Lekakos, G., & Krogstie, J. (2019). Big Data Analytics Capabilities and Innovation: The mediating role of dynamic capabilities and moderating effect of the environment. British Journal of Management, 30(2), 272–298. https://doi.org/10.1111/1467-8551.12343

Muñoz, P., & Cohen, B. (2017). Mapping out the sharing economy: A configurational approach to sharing business modeling. Technological Forecasting and Social Change, 125, 21–37. https://doi.org/10.1016/j.techfore.2017.03.035

Reim, W., Parida, V., & Örtqvist, D. (2014). Product–Service Systems (PSS) business models and tactics – a systematic literature review. Journal of Cleaner Production, 97, 61–75. https://doi.org/10.1016/j.jclepro.2014.07.003

Schaltegger, S., & Wagner, M. (2010). Sustainable entrepreneurship and sustainability innovation: categories and interactions. Business Strategy and the Environment, 20(4), 222–237. https://doi.org/10.1002/bse.682

Sjödin, D. R., Parida, V., Leksell, M., & Petrovic, A. (2018). Smart factory implementation and process innovation. Research-Technology Management, 61(5), 22–31. https://doi.org/10.1080/08956308.2018.1471277

Smith, A., Voß, J., & Grin, J. (2010). Innovation studies and sustainability transitions: The allure of the multi-level perspective and its challenges. Research Policy, 39(4), 435–448. https://doi.org/10.1016/j.respol.2010.01.023

Torugsa, N. A., O’Donohue, W., & Hecker, R. (2012). Proactive CSR: An Empirical Analysis of the Role of its Economic, Social and Environmental Dimensions on the Association between Capabilities and Performance. Journal of Business Ethics, 115(2), 383–402. https://doi.org/10.1007/s10551-012-1405-4

Turnheim, B., Berkhout, F., Geels, F., Hof, A., McMeekin, A., Nykvist, B., & Van Vuuren, D. (2015). Evaluating sustainability transitions pathways: Bridging analytical approaches to address governance challenges. Global Environmental Change, 35, 239–253. https://doi.org/10.1016/j.gloenvcha.2015.08.010

Ulas, D. (2019). Digital Transformation process and SMEs. Procedia Computer Science, 158, 662–671. https://doi.org/10.1016/j.procs.2019.09.101

Vassakis, K., Petrakis, E., & Kopanakis, I. (2017). Big Data Analytics: applications, prospects and challenges. In Lecture notes on data engineering and communications technologies (pp. 3–20). https://doi.org/10.1007/978-3-319-67925-9_1

Wang, Y., Singgih, M., Wang, J., & Rit, M. (2019). Making sense of blockchain technology: How will it transform supply chains? International Journal of Production Economics, 211, 221–236. https://doi.org/10.1016/j.ijpe.2019.02.002