Unveiling the role of digital transformation in the LCA process: an empirical investigation of Italian agri‐food firms

Purpose The purpose of this study is to explore the interrelationship between digital transformation of life cycle assess- ment (LCA) and operational excellence. Adopting the socio-technical systems theory and the resource-based view, the study examines the mediating role of big data analytics capability at the individual level and the moderating role of data-driven culture at the organizational level in that relationship. Methods A quantitative methodology was adopted using structural equation modeling (SEM). Data were collected through an online survey administered to 300 Italian agri-food firms identified through the AIDA database. Two hundred twenty- nine valid responses were gathered from such firms adopting LCA, resulting in a usable response rate of 76%. Data analysis was performed initially through a confirmatory factor analysis to evaluate the psychometric properties of the measurement model and then through a path analysis to test the study’s hypothesis in the structural model. Results The results indicate that the digital transformation of LCA does not significantly impact operational excel- lence directly. Instead, this relationship was fully mediated by big data analytics capability, which highlights the important role of human resources in nurturing this capability in the process of digital transformation of LCA. More importantly, the findings highlight the need to foster a data-driven culture, given its significantly positive moderating effect on the relationship between the digital transformation of LCA and big data analytics capability. Conclusions The study provides an important perspective of LCA, showing that the digital transformation of LCA is a unified and dynamic process. The study also highlights the importance of human resource management in nurturing big data analytics capability at the individual level and intangible resource management of a data-driven culture at the organizational level in the success of digital transformation of LCA in achieving operational excellence.