2025, Vol. 6, Issue 2, Part V
Decision paralysis in data-rich firms: When business analytics becomes a strategic liability
Author(s): Amenah Hadi Ameen and Safa Raid Adnan AL-ansari
Abstract: This study examines the paradox of decision paralysis in data-rich firms, where the extensive use of business analytics intended to enhance rationality and strategic precision can instead impede timely and effective decision-making. As organizations increasingly invest in big data, business intelligence, and advanced analytics, managers are often confronted with overwhelming volumes of information, conflicting metrics, and complex dashboards that exceed human cognitive processing limits. Drawing on theories of bounded rationality and information overload, this research argues that excessive data can erode managerial confidence, slow strategic response, and transform analytics from a competitive asset into a strategic liability. Using an integrative literature review and qualitative analysis of empirical studies, industry surveys, and illustrative case examples, the paper explores how over analysis manifests at both managerial and strategic levels. Evidence from global executive surveys highlights that a substantial proportion of leaders experience decision paralysis, abandon decisions altogether, or suffer decision distress due to data overload. The findings demonstrate that decision paralysis undermines strategic agility, delays innovation, and weakens dynamic capabilities, particularly in fast-changing competitive environments. However, the study also emphasizes that analytics itself is not inherently detrimental; rather, its value depends on how it is integrated into decision processes. The paper concludes that decision-driven analytics, data simplification, enhanced managerial data literacy, and a culture that balances evidence with judgment are critical to mitigating analysis paralysis. By reframing analytics as a tool to support not replace human decision-making, organizations can restore decisiveness and ensure that data serves strategic objectives rather than constraining them.
DOI: 10.22271/27084515.2025.v6.i2v.939
Pages: 1996-2007 | Views: 317 | Downloads: 234
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How to cite this article:
Amenah Hadi Ameen, Safa Raid Adnan AL-ansari. Decision paralysis in data-rich firms: When business analytics becomes a strategic liability. Asian J Manage Commerce 2025;6(2):1996-2007. DOI: 10.22271/27084515.2025.v6.i2v.939
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