Business Intelligence Capability and Organizational Performance: The Mediating Role of Data-Driven Decision-Making

Abstract

Business Intelligence Capability (BIC) is becoming a vital tool for organizations to convert their data into valuable information to aid managerial and strategic decision-making. This study aimed to explore the relationship between Business Intelligence Capability and Organizational Performance, with a focus on the mediating role of Data-Driven Decision-Making (DDDM). The researcher used a quantitative cross-sectional research design and collected data from 300 employees and managers of organizations that adopted business intelligence or data analytics systems. A structured questionnaire was used to collect data, and the data were analyzed using descriptive statistics, a 5-point Likert scale, and bootstrapped mediation analysis. The results indicated that the means of Business Intelligence Capability was 4.12 (SD = 0.56), Data-Driven Decision-Making had a mean score of 4.08 (SD = 0.59), and Organizational Performance had a mean of 4.15 (SD = 0.52). The results also showed that Business Intelligence Capability had a positive effect on Data-Driven Decision-Making (β = 0.72), and Data-Driven Decision-Making had positive effect on Organizational Performance (β = 0.57). The direct effect of Business Intelligence Capability on Organizational Performance was also significant (β = 0.27). The indirect effect, mediated through Data-Driven Decision-Making, was 0.41 (95% CI = 0.32–0.51), suggesting partial mediation. The study ultimately found that strengthening BI capabilities and incorporating analytical information into managerial decision-making processes can improve performance.

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