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Towards data-driven decision making: the role of analytical culture and centralization efforts

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  • Ágnes Szukits

    (Corvinus University of Budapest)

  • Péter Móricz

    (Corvinus University of Budapest)

Abstract

The surge in data-related investments has drawn the attention of both managers and academia to the question of whether and how this (re)shapes decision making routines. Drawing on the information processing theory of the organization and the agency theory, this paper addresses how putting a strategic emphasis on business analytics supports an analytical decision making culture that makes enhanced use of data in each phase of the decision making process, along with a potential change in authorities resulting from shifts in information asymmetry. Based on a survey of 305 medium-sized and large companies, we propose a multiple-mediator model. We provide support for our hypothesis that top management support for business analytics and perceived data quality are good predictors of an analytical culture. Furthermore, we argue that the analytical culture increases the centralization of data use, but interestingly, we found that this centralization is not associated with data-driven decision making. Our paper positions a long-running debate about information technology-related centralization of authorities in the new context of business analytics.

Suggested Citation

  • Ágnes Szukits & Péter Móricz, 2024. "Towards data-driven decision making: the role of analytical culture and centralization efforts," Review of Managerial Science, Springer, vol. 18(10), pages 2849-2887, October.
  • Handle: RePEc:spr:rvmgts:v:18:y:2024:i:10:d:10.1007_s11846-023-00694-1
    DOI: 10.1007/s11846-023-00694-1
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    More about this item

    Keywords

    Data-driven decision making; Business analytics; Decision making culture; Centralization;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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