The Impact of Business Analytics on Decision-Making Among Small and Medium Enterprises in Andhra Pradesh

Abstract

This study assesses how BA adoption influences decision-making in Andhra Pradesh SMEs. The research uses a quantitative descriptive cross-sectional survey method and a structured 25-item questionnaire (Google Forms) administered to owners, managers, and decision-makers in SMEs using convenience and purposive sampling methods to reach an estimated 150 SME respondents. The research instrument addresses BA awareness and application operational pricing, inventory, and strategic decisions, usefulness, and convenience trust verification of analytical information and decision quality. Due to the unavailability of actual responses, it shows the statistical analysis based on a simulated/illustrative dataset of 150 cases designed to demonstrate the analysis procedure, not actual responses from the target population of SME managers in Andhra Pradesh. In this dataset, the average Business Analytics Adoption Score was 3.79, and the average Decision-Making Quality (DMQ) Score was also 3.79 on a five-point scale. Internal consistency was high ( = 0.947 for adoption and 0.899 for DMQ). Frequency of data use showed a significant association with decision-making quality ( = 34.268, df = 4, p.< 0.001). Decision-making quality did not vary Really between business sectors (F = 1.300, p = 0.273). Adoption and DMQ were strongly correlated (r = 0.826), with adoption accounting for 68.2% of the variation in DMQ (R = 0.682). Pricing had the lowest mean score for analytics-driven application (mean 3.45). These findings demonstrate the analytical setup, indicate associations rather than causality, and should be recalculated using actual survey data.