Antecedents and Performance Impacts of Analytics-Based Managerial Decision-Making

This study investigates how organizations can achieve competitive advantage with data analytics. Two dimensions of the value creation process are investigated: (1) the input or antecedents of Big Data analytics (BDA) and (2) the mechanisms required to translate BDA investments into increased organizational performance. The results of survey responses from senior finance managers across a broad range of industries in Australia reveal that analytics-based decision-making (ABDM) is the main mechanism for converting analytic capabilities into competitive advantage. The technical, interaction and business skills of analysts are important antecedents of both BDA sophistication and ABDM, but the strongest driver of the latter business managers’ quantitative skills. We conclude that competing with analytics does not just require investments into analysts’ skills and related tools and IT architectures, but also into quantitative skills of business managers. Finally, our analysis reveals that managers of smaller organizations are more likely to base their decisions on analytics than those in large organizations