Abstract
Decision makers are exposed to an increasing amount of information. Algorithms can help people make better data-driven decisions. Previous research has focused on both companies’ orientation towards analytics use and the required skills of individual decision makers. However, each individual can make either analytically based or intuitive decisions. We investigated the characteristics that influence the likelihood of making analytical decisions, focusing on both analytical orientation and capabilities of individuals. We conducted a survey using 462 business students as proxies for decision makers and used partial least squares path modeling to show that analytical capabilities and analytical orientation influence each other and affect analytical decision-making, thereby impacting decision quality and decision regret. Our findings suggest that when implementing business analytics solutions, companies should focus on the development not only of technological capabilities and individuals’ skills but also of individuals’ analytical orientation.
Highlights
Effective analysis and utilization of big data is a key factor for success in many business and service domains (Shukla & Mathur, 2020)
They conducted a survey using 462 business students as proxies for decision makers and used partial least squares path modeling to show that analytical capabilities and analytical orientation influence each other and affect analytical decision-making, thereby impacting decision quality and decision regret
We argue that analytical decision-making is a combination of both analytical orientation and analytical capabilities
Summary
Effective analysis and utilization of big data is a key factor for success in many business and service domains (Shukla & Mathur, 2020). Recommendation engines, filtering systems, prioritization and personalization algorithms have been tried to help individuals make better decisions and reduce their indecisiveness. Business analytics (BA) are increasingly being adopted in practice and emerging as an urgent challenge to improve personal and company performance, as evidence-based decision-making seems both desirable and rational (Beer, 2017; Holsapple, Lee-Post, & Pakath, 2014; Power, Cyphert, & Roth, 2019). Companies want to become more data-driven, by taking advantage of real-time BA (Ain, Vaia, DeLone, & Waheed, 2019; Beer, 2017).
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