Does Speed Matter? Business Intelligence, Dynamic Capabilities and Managerial Decision Quality
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Abstract
This study aims to examine the effect of business intelligence (BI) and dynamic capabilities on managerial decision quality, with decision-making speed as a mediating variable, using contingency theory and the dynamic capability view as the theoretical basis. Data were obtained from 157 managers of medium and large manufacturing companies in Banten Province, Indonesia, selected by purposive sampling, and were analyzed using PLS-SEM with SmartPLS 4. The results show that BI (0.390) and dynamic capabilities (0.505) have a positive effect on decision-making speed, while BI (0.250), dynamic capabilities (0.417), and decision-making speed (0.228) have a positive effect on managerial decision quality. In the mediation test, the indirect effect of dynamic capabilities through decision-making speed (0.115) is significant, indicating partial mediation, while the indirect effect of BI (0.089) is not, so BI affects decision quality only through its direct path; the model explains 72.7% of the variance in decision-making speed and 70.6% in decision quality. For manufacturing companies, these results mean that BI contributes to decision quality mainly through the content of its information, and that BI investment has to be accompanied by the development of organizational capabilities.
Keywords:
Business intelligence Dynamic capabilities Decision-making speed Managerial decision quality PLS-SEMReferences
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Copyright (c) 2026 Edward Fazri, Kurniarga Bagaskara, Rani Agustin, Ghossan Zu Zaki
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