Data-Driven Decision Making and Strategic Management in Contemporary Firms

Abstract

Data-driven decision making has become an important component of contemporary strategic management. Organizations increasingly collect information from customers, employees, operations, financial systems, digital platforms, and external markets. Advances in analytics and artificial intelligence have expanded organizations' capacity to process these data. However, the availability of data does not automatically produce better strategic decisions. Data quality, analytical capability, managerial interpretation, organizational culture, and strategic alignment determine how effectively information is converted into organizational action. This conceptual paper examines the relationship between data-driven decision making and strategic management. Drawing upon the Resource-Based View and dynamic capabilities perspective, the paper proposes that data-driven decision making can strengthen organizational sensing, analytical decision-making, and strategic adaptability. The paper also identifies data literacy, analytical capability, leadership support, and governance as important conditions. The study concludes that organizations should develop both technological infrastructure and managerial capabilities to derive strategic value from data.