Evaluating the impact of big data analytics usage on the decision-making quality of organizations

Abstract

Big data initiatives are critical for transforming traditional organizational decision making into data-driven decision making. However, prior information systems research has not paid enough attention to the impact of big data analytics usage on decision-making quality. Drawing on the dynamic capability theory, this study investigated the impact of big data analytics usage on decision-making quality and tested the mediating effect of data analytics capabilities. We collected data from 240 agricultural firms in China. The empirical results showed that big data analytics usage had a positive impact on decision-making quality and that data analytics capabilities played a mediating role in the relationship between big data analytics usage and decision-making quality. Hence, firms should not only popularize big data analytics usage in their business activities but also take measures to improve their data analytics capabilities, which will improve their decision-making quality toward competitive advantages.