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Exploring the impact of business analytics on strategic decision-making in uncertain environments

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  • Guangming Cao
  • Yanqing Duan

Abstract

Business analytics presents significant opportunities for enhancing strategic decision-making (SDM), which is crucial for organizational competitiveness. However, there is a knowledge gap in understanding the interactions among environmental dynamism, business analytics use, environmental scanning, and rational and intuitive SDM. This paper addresses this gap by leveraging the information processing view and analyzing 218 survey responses using partial least squares (PLS) path modeling. It reveals that environmental dynamism influences business analytics use and environmental scanning. Business analytics use positively impacts rational SDM but negatively affects intuitive SDM. Environmental scanning partially mediates the relationship between business analytics use and rational SDM, and there is an inverse correlation between rational and intuitive SDM. This research introduces a novel theoretical framework, enriching the information processing view, and deepens understanding of how strategic information processing capabilities influence SDM. It also provides practical insights for organizations using business analytics to improve SDM processes in uncertain environments.

Suggested Citation

  • Guangming Cao & Yanqing Duan, 2024. "Exploring the impact of business analytics on strategic decision-making in uncertain environments," Journal of Management Analytics, Taylor & Francis Journals, vol. 11(4), pages 577-600, October.
    • Handle: RePEc:taf:tjmaxx:v:11:y:2024:i:4:p:577-600
    DOI: 10.1080/23270012.2024.2420365
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