Human Resource Analytics and Strategic Decision Making Through Evidence Based Human Resource Management and Data Driven Culture

Abstract

Human Resource Analytics (HRA) has emerged as a critical strategic capability that enables organizations to transform workforce data into evidence-based strategic decisions. Despite its growing importance, empirical evidence examining the influence of HRA capability on strategic decision-making effectiveness remains limited, particularly in emerging economies. This study investigates the direct effect of HRA capability on decision-making effectiveness while examining the mediating role of evidence-based human resource management (EBHRM) and the moderating influence of a data-driven organizational culture. A quantitative cross-sectional survey was conducted among HR managers and employees from Libyan organizations, and the proposed research model was evaluated using partial least squares structural equation modeling (PLS-SEM). The results reveal that HRA capability significantly enhances strategic decision-making effectiveness (β = 0.42, p < 0.001). Furthermore, EBHRM partially mediates this relationship (β = 0.24, p < 0.001), whereas a data-driven culture strengthens the positive impact of HRA capability on decision-making effectiveness (β = 0.18, p < 0.01). Overall, the findings demonstrate that the strategic value of HRA is maximized when organizations integrate evidence-based HR practices with a strong data-oriented culture, offering important theoretical and practical insights for advancing strategic human resource management in emerging economies.