Real-Time Data-Driven Decision-Making and Business Performance: The Mediating Role of Data Analytics Capability
DOI:
https://doi.org/10.51903/tk6rt739Keywords:
Business Performance, Data Analytics, Organizational Data Analytics Capability, PLS-SEM, Real-Time Data-Driven Decision-MakingAbstract
The rapid growth of digital technologies and business data has encouraged organizations to use Real-Time Data-Driven Decision-Making (RT-DDDM) to support timely and informed decisions. This study develops and tests a simulation-based model examining the relationship between RT-DDDM, Organizational Data Analytics Capability (ODAC), and Business Performance. A quantitative PLS-SEM approach was implemented in SmartPLS using 180 simulated observations. The observations were generated for methodological practice rather than collected from actual organizational respondents. The simulation used predetermined five-point Likert response categories and an intentionally specified positive association structure among the latent constructs. Therefore, the resulting path coefficients, R², Q², validity statistics, and mediation effect are outcomes of the simulation design rather than empirical estimates of organizational populations. The simulated model produced positive and statistically significant paths from RT-DDDM to Business Performance and ODAC, and from ODAC to Business Performance. ODAC also showed a significant indirect effect, while the direct RT-DDDM–Business Performance path remained significant. These results illustrate how a mediation model can be evaluated under stated simulation assumptions. The main contribution is methodological and conceptual: the study demonstrates a PLS-SEM mediation structure while distinguishing simulation-based model behavior from empirical organizational evidence
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