Effects of Analytics Large Data Set on Decision-Making and Organizational Performance: A Study on Chinese Manufacture Sector

Abstract

In today’s data-driven environment, Big Data Analytics (BDA) plays a vital role in enhancing decision-making quality and organizational performance. However, limited empirical research exists on how the five characteristics of big data (5Vs: Volume, Velocity, Variety, Veracity, and Value) influence decision-making effectiveness in China’s industrial sector. Addressing this gap, the present study builds on Simon’s decision-making theory and the information processing perspective to develop and test a research model linking BDA to decision-making and performance outcomes. Using a self-designed structured survey, data were collected from 312 managers across medium and large-sized manufacturing firms in China. Structural equation modeling (SEM) was employed to examine the relationships among constructs. The results show that all five BDA characteristics significantly enhance the quality and efficiency of decision-making, which in turn positively impacts organizational performance. Furthermore, multi-group analysis revealed no significant difference in the BDA–decision-making relationship between medium and large enterprises. This study contributes theoretically by integrating BDA with decision-making theory and practically by offering managers evidence-based insights on how to leverage big data for more informed and effective decision-making across industrial operations.