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Journal ArticleDOI

Strength in Numbers: How Does Data-Driven Decisionmaking Affect Firm Performance?

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TLDR
Evidence that the effect of DDD on the productivity do not appear to be due to reverse causality is found, providing some of the first large scale data on the direct connection between data-driven decision making and firm performance.
Abstract
We examine whether firms that emphasize decision making based on data and business analytics (“data driven decision making” or DDD) show higher performance. Using detailed survey data on the business practices and information technology investments of 179 large publicly traded firms, we find that firms that adopt DDD have output and productivity that is 5-6% higher than what would be expected given their other investments and information technology usage. Furthermore, the relationship between DDD and performance also appears in other performance measures such as asset utilization, return on equity and market value. Using instrumental variables methods, we find evidence that the effect of DDD on the productivity do not appear to be due to reverse causality. Our results provide some of the first large scale data on the direct connection between data-driven decision making and firm performance.

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Proceedings ArticleDOI

Disempowered by Data: Nonprofits, Social Enterprises, and the Consequences of Data-Driven Work

TL;DR: Results from an interview-based study of the role of data in the monitoring and evaluation practices of mission-driven organizations suggest that the design of information systems should work towards empowering organizations in ways that make sense for their unique data needs and those of their constituents.
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Big data analytics capability and decision making performance in emerging market firms: The role of contractual and relational governance mechanisms

TL;DR: Wang et al. as discussed by the authors investigated the mediation of big data analytics (BDA) capability in the association of contractual and relational governance with decision-making performance, and the moderating role of data-driven culture in the relationship of BDA capability and decisionmaking performance.
References
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