Business Analytics Capability and Competitive Advantage: The Mediating Role of Data-Driven Decision-Making
DOI:
https://doi.org/10.61424/2vy91f33Keywords:
Business Analytics Capability, Competitive Advantage, Data-Driven Decision-Making, Organizational Performance, Business IntelligenceAbstract
Business analytics capability has emerged as a critical organizational resource for firms seeking to strengthen competitive advantage in increasingly data-intensive and dynamic markets. This study examines the relationship between business analytics capability and competitive advantage, with particular emphasis on the mediating role of data-driven decision-making. The study adopts a comprehensive review approach, synthesizing findings from relevant empirical and conceptual literature on analytics capabilities, organizational decision-making, and firm performance. The reviewed evidence indicates that business analytics capability enables organizations to effectively collect, integrate, analyze, and interpret data, thereby improving the quality, speed, and accuracy of managerial decisions. Data-driven decision-making serves as an important mechanism through which analytics capabilities are translated into competitive outcomes by supporting evidence-based resource allocation, market responsiveness, operational efficiency, customer understanding, and innovation. The findings further suggest that organizations possessing advanced analytical capabilities do not automatically achieve superior performance; rather, competitive benefits are more likely when analytical insights are systematically incorporated into strategic and operational decision processes. The study therefore concludes that data-driven decision-making plays a significant mediating role in converting business analytics capability into sustainable competitive advantage. The review highlights the importance of developing not only technological and analytical infrastructure but also managerial competencies, data governance practices, and an organizational culture that supports evidence-based decision-making.
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