Impact of data analytics in transforming the decision-making process

Abstract

Although business analytics is becoming more and more used to provide data-driven insights to support decision making, there is little research on how business analytics may be used at an organizational level to enhance decision making effectiveness. This paper develops a study model linking company analytics to organizational decision-making effectiveness, using the info processing view as well as contingency theory. Based on 740 responses from UK business organizations, the research model is examined using structural situation modelling. Key findings show that business analytics can be done through key findings. Mediating a data driven environment positively affects information processing abilities, which have a good impact on decision-making effectiveness in turn. The findings also show that the pathways from company analytics to decision making are obvious. There are no statistical differences between large and small businesses, but several differences between the manufacturing and professional services industries. Our findings add to the literature on business analytics by offering helpful insights into company analytics applications and the facilitation of data driven decision making. They also improve the knowledge and understanding of managers by showing how business analytics needs to be applied to improve decision making effectiveness.