Abstract: Greater use of business analytics (BA) does not necessarily lead to improved performance unless a data-driven culture (DDC) is embedded throughout the structures and resources within the organization’s work environment. Several studies have shown the transformative power of data to provide actionable insights. However, limited research examines how organizational culture, skills, and knowledge influence the value creation of strategic BA initiatives and whether these factors complement BA complements. To address this gap, this study integrates the literature on DDC, data literacy skills (DLS), knowledge management (KM), and decision-making to explore their interrelationships. Using a quantitative approach, data were collected from 220 experienced managers (administrators and supervisors) directly involved in BA activities within Indonesian public service organizations. Structural equation modeling (SEM) was chosen for data analysis, and SmartPLS 4.0 was used to analyze the research model. The results reveal that DDC, DLS, and KM significantly enhance business analytics capabilities (BAC). While DLS and KM mediate the relationship between DDC and BAC, DDC alone does not directly impact decision-making performance (DMP). Instead, BAC mediates the relationship between DDC and DMP, highlighting the relationship between these factors. By focusing on the public sector, this study highlights how BA serves as a bridge between the visionary potential of data and tangible organizational impacts. This paves the way for successful data-driven transformation and future strategic advantages.

Keywords: Business analytics capabilities, Data-driven culture, Decision-making, Knowledge management, Literacy skills, Public sector institutions

Pages: 1-16