Artificial Intelligence Adoption and Analytical Capabilities as Strategies for Improving Decision-Making Quality and Organizational Performance in the Digital Era
DOI:
https://doi.org/10.61132/jpbi.v3i2.1617Keywords:
AI adoption, Analytical Capabilities, Decision-Making Quality, Organizational Performance, PLS-SEMAbstract
Artificial intelligence has become an important organizational resource for improving information processing, managerial decisions, and business performance. This study examines the effects of AI adoption and analytical capabilities on organizational performance through the mediating role of decision-making quality. A quantitative explanatory design was employed involving 200 managers and employees from digitally oriented organizations selected through purposive sampling. Data were collected using a five-point Likert-scale questionnaire and analyzed using Partial Least Squares Structural Equation Modeling. The results indicate that AI adoption and analytical capabilities positively influence decision-making quality and organizational performance. Analytical capabilities demonstrate the strongest influence on decision-making quality, while decision-making quality significantly improves organizational performance. The mediation analysis confirms that decision-making quality partially mediates the relationships between AI adoption, analytical capabilities, and organizational performance. These findings demonstrate that technological investment alone is insufficient to generate optimal organizational outcomes. Organizations should combine AI implementation with analytical competency development, effective data governance, managerial judgment, and employee training. This integrated approach can strengthen organizational decision-making and support sustainable performance in digitally oriented business environments.
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