Leveraging on Financial Intelligence for Effective Strategic Decision-Making in the Digital Economy

Abstract

This study investigates the influence of financial intelligence on strategic decision-making effectiveness in the digital economy. Adopting a quantitative research approach and a cross-sectional survey design, data were collected from 164 respondents drawn from managerial, financial, and strategic roles across diverse industries. The study operationalised financial intelligence into dimensions: financial data analytics, financial reporting quality, financial technology adoption, financial risk intelligence, and financial forecasting capability. Using Partial Least Squares Structural Equation Modelling (PLS-SEM), the findings revealed that al dimensions significantly and positively affect strategic decision-making effectiveness, with FinTech adoption emerging as the strongest predictor. The model explained 62% of the variance in strategic decision-making effectiveness, confirming substantial explanatory power. The results validate the Resource-Based View and Dynamic Capabilities Theory, demonstrating that financial intelligence constitutes both a strategic resource and an adaptive capability essential for organisational competitiveness. The study concludes that financial intelligence is not merely an operational function but a strategic asset that enhances agility, resilience, and innovation in digitally transformed environments. The implications highlight the need for managers to invest in digital financial systems, analytics, and forecasting tools, while policymakers should support enabling infrastructures. Ultimately, financial intelligence is indispensable for organisations seeking sustainable growth and competitive advantage in the digital economy.