Factors Impacting the Influence of Analytic Capabilities on Organizational Performance in Higher Education

Abstract

In response to changing fiscal needs and opportunities, higher education institutions have adopted new ways to use financial information for improved decision making. Drawing upon resource based theory we examine the connection between university level data analytic capabilities and organizational performance. We posit this relationship to exist through a serially mediated path of data-driven culture and data quality. The study provides empirical evidence that establishing a data-driven culture contributes to data quality which together result in increased organizational performance. The serial mediation pathway creates a positive effect between data analytic capabilities on organizational performance. This is critical information relative to both resource based theories and practical implications for higher education relative to beginning the investment cycle at the organizational culture level related to use of data.