The commodity trading and risk management (CTRM) system is crucial in the oil trading business, providing real-time data and analytics to manage risks, optimise trading strategies and streamline operations in the volatile oil markets. This research examines the impact of digital solution capabilities like data management, data analytics and trade risk management via the CTRM system on the operational performance of UAE oil trading firms through decision-making quality. Primary data was collected through a structured questionnaire from 72 oil and energy trading firms in the UAE. The data analysis was done with the structural equation modelling technique through Smart PLS software. The findings revealed that the data management capabilities have a direct positive impact on operational performance and quality of decision-making. However, data analytics does not significantly impact operational performance, suggesting that analytics alone is not sufficient to enhance decision-making quality. This study has managerial implications for commodity trading firms to enhance CTRM digital solutions’ capabilities, particularly in data and trade risk management with improved operational performance and decision-making quality, offering valuable insights for industry professionals and decision-makers seeking a competitive edge in the commodity trading sector.
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