Review of Managerial Science · 2023 · 89 citations · 111 references
BusinessBusiness AnalyticsInformation TechnologyBusiness StrategyCorporate StrategyData ManagementAnalytics StrategyData-driven Decision MakingAgency Cost TheoryAnalytical Decision SupportAnalytical Decision-makingCentralizationData CultureData UseData-driven Strategic Decision-makingInformation Asymmetry Effects
The surge in data‑related investments has prompted interest in how they reshape decision‑making routines, and this paper frames the issue within the long‑running debate on IT‑driven centralization of authority in business analytics. The study examines how a strategic focus on business analytics can foster an analytical decision‑making culture that enhances data use across all decision phases and potentially alters authority structures through changes in information asymmetry. Drawing on a survey of 305 medium‑ and large‑sized firms, the authors propose a multiple‑mediator model linking top‑management support, perceived data quality, analytical culture, and data‑use centralization. Results show that top‑management support and perceived data quality predict an analytical culture, and that although this culture increases data‑use centralization, such centralization is not associated with data‑driven decision making.
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.
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