Performance Management Research Center of Budapest

Towards data-driven decision making: the role of analytical culture and centralization efforts

The research project, entitled „Future’s Organisation and Management”, examines the organizational and management practices of the present and the future, with a particular focus on a Hungarian organizational model. As previously indicated, the Q1 article was produced within this context. In November 2023, with the assistance received, the database was augmented with financial data for 2021 and 2022. Our methodology is quantitative, employing SmartPLS 4 software in conjunction with SPSS. However, due to the university’s failure to renew the previous subscription, we are obliged to finance the latter from our own resources.

Putting a strategic emphasis on business analytics supports an analytical decision making culture that makes enhanced use of data in each phase of the decision making process, along with a potential change in authorities resulting from shifts in information asymmetry.  We provide support for our hypothesis that top management support for business analytics and perceived data quality are good predictors of an analytical culture. Furthermore, we argue that the analytical culture increases the centralization of data use, but interestingly, we found that this centralization is not associated with data-driven decision making.