Exploring the impact of business analytics on strategic decision-making in uncertain environments

Business analytics presents significant opportunities for enhancing strategic decision-making (SDM), yet a significant knowledge gap exists in our understanding of the interplay among environmental dynamism, business analytics use, environmental scanning, and rational and intuitive SDM. This paper aims to address this gap by leveraging the information processing view. Analyzing 218 survey responses using partial least squares (PLS) path modeling, the study underscores the influence of environmental dynamism on both business analytics use and environmental scanning. Furthermore, it reveals that while business analytics positively influences rational SDM, it exerts a negative effect on intuitive SDM. Additionally, environmental scanning partially mediates the link between business analytics use and rational SDM. Moreover, rational SDM exhibits a negative correlation with intuitive SDM. This study contributes to the literature by introducing a novel theoretical framework, enriching the information processing view, and deepening our understanding of how strategic information processing capabilities influence nonroutine and crucial SDM. Furthermore, it furnishes practical insights for organizations employing business analytics within dynamic contexts to enhance their SDM processes.