Data-Driven Management and Strategic Decision-Making: Examining Their Influence on Organizational Performance and Competitive Advantage

Abstract

While data-driven management is gaining traction as organizations strive to enhance performance and maintain a competitive edge, the organizational worth of data could hinge on its ability to be converted into strategic decisions. This study examined the influence of Data-Driven Management and Strategic Decision-Making on Organizational Performance and Competitive Advantage and assessed the mediating role of Strategic Decision-Making. A quantitative cross-sectional analysis was conducted using secondary survey data from 204 Indonesian exporting firms. Construct reliability was assessed using Cronbach’s alpha, while exploratory factor analysis was applied to Strategic Decision-Making. Pearson correlations, multiple linear regression with HC3 robust standard errors, bootstrap mediation analysis, and sensitivity analysis were performed. All constructs demonstrated high internal consistency (α = .880–.961). Strategic DecisionMaking significantly predicted Organizational Performance (β = .658, p < .001) and Competitive Advantage (β = .544, p < .001), whereas the direct effects of Data-Driven Management were nonsignificant. Bootstrap analysis identified significant indirect effects of Data-Driven Management through Strategic Decision-Making on Organizational Performance (indirect effect = 0.343, 95% CI [0.243, 0.466]) and Competitive Advantage (indirect effect = 0.281, 95% CI [0.177, 0.398]). The results showed that, among strategic decision-making processes, Strategic Decision-Making is a pathway of greater importance with respect to the association with organizational outcomes, highlighting the importance of the translation of information for the organizational manager to effective decision-making at the strategic level.