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Analytical Decision-Making and Operational Performance: The Mediating Role of Decision Effectiveness and the Moderating Role of Time Pressure
Amir Manzur Wain, Ahmad Bilal Ali, Imran Bashir, Sardar Ahmad, Muhammad Hassan Khalil
Abstract:
This paper focuses on the effect of the analytical decision-making style on operational performance based on decision-making effectiveness but considers the conditioned role of time pressure. Based on the Information Processing Theory and Yerkes-Dodson approach, the research will be guided by a moderated mediation proposal where time pressure is a limitation condition that determines the quality of analytical decision-making. A structured survey was used in the collection of data related to employees in operations-related jobs and the proposed relationships were evaluated with the Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings demonstrate that decision-making style analytically is a strong and positive influence on decision-making effectiveness and that, in turn, positively impacts operational performance. Moreover, the effectiveness of decision-making has been found to mediate between the association between analytical decision-making and performance, which underscores its significance as a major underlying process. Notably, time pressure plays a moderate role in the relationship between analytical decision-making and decision effectiveness, where the positive relationship under moderate time pressure levels is greater. The results also validate moderated mediation with the conclusion that the effect of analysis decision making on operational performance is modulated by the level of time pressure. The current research seeks to add to the literature by including cognitive, process, and contextual provisions in a single framework and providing a more in-depth insight into the issue of decision-making under constraint. In practice, the results indicate that organizations can build their performance capability through the development of analytical decision-making skills and time management as opposed to trying to eradicate it. The research presents a solution-based thinking on how to make better decisions and performance within the time-sensitive operation setting.
Keywords:
Analytical decision-making style, decision-making effectiveness, operational performance, time pressure, moderated mediation, information processing theory, PLS-SEM.
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