The Effect of Data Characteristics and Top Management Characteristics on Decision Making Capabilities: The Role of AI and Business Analytical Capability

Abstract

Data is essential for making decisions. However, these data should be appropriately collected and analyzed by capable managers. Few studies examined the effect of data characteristics (DC) and top management characteristics (TMC) on decision-making capability (DMC). In addition, few examine the application of artificial intelligence enterprise resource planning (AIERP) in this process. The purpose of this study is to examine the effect of DC and TMC on DMC. Building on existing theories and studies, this study proposed that DC (data integrity, data quality, data authentication, and data error) significantly affect the DMC. In addition, TMC (data analytical capability and technological innovation) significantly affect the DMC. AIERP is predicted to have a mediator role between DC and TMC, and DMC. Business analytical capability (BAC) is anticipated as a moderating variable. The data was collected from technological companies in the Gulf Cooperation Council (GCC). A purposive sampling technique was deployed. The findings using SmartPLS 4.0 showed that DC and its components expect data authentication and TMC and its components have significant effects on DMC. AIERP mediated the effect of DC and TMC on DMC while BAC did not moderate the effect of DC and TMC on DMC. Decision-makers have to focus on collecting high-quality data and ensuring the data is free from error. Decision-makers also have to use technology to enhance the quality and effectiveness of decisions.