Data Analytics Aids Local Government Performance Through Decision-Making

Data analytics capabilities do not have a direct association with organizational performance in local governance, but their benefits are realized when integrated into data-driven decision-making, according to a study of a local government assembly in Ghana. Published in the journal SN Social Sciences, the research revealed that while analytics capabilities alone fail to guarantee improved public sector outcomes, they exhibit a strong positive relationship with decision-making processes that directly predict performance gains.

The investigation was grounded in Organisational Information Processing Theory and Upper Echelons Theory to explore operational dynamics within a resource-constrained emerging economy setting. To examine these organizational mechanisms, the researchers utilized a cross-sectional survey explanatory design, gathering empirical data from 127 employees at the local assembly through a structured online questionnaire.

Using Partial Least Squares Structural Equation Modelling to evaluate the survey data, the authors assessed structural relationships among the organizational factors. The statistical analysis demonstrated that data-driven decision-making mediates the relationship between data analytics capabilities and organizational performance. Although data analytics capability lacked a direct link to performance improvements, it strongly supported data-driven decision practices, which in turn functioned as a significant predictor of organizational performance.

In addition to evaluating analytics implementation, the study assessed the influence of leadership support on assembly outcomes. The model indicated that top management support directly and significantly predicted organizational performance, although it did not moderate the relationship between data analytics capability and performance. The study concludes that data analytics capabilities alone do not guarantee improved performance, but rather their value is realized through integration into decision-making processes.

The investigation contributes context-specific evidence from Ghanaian local government by refining the application of Organisational Information Processing Theory and Upper Echelons Theory within a resource-constrained local governance setting.

Subject of Research: Data analytics capabilities and decision-making in local government performance

Article Title: Data analytics capabilities and organisational performance at an emerging economy’s local government assembly: the roles of top-management support and data driven decision making

Article References: Andoh, A. N. K., Fudzi, M., Baada, B., Asmah, E. E., Addo, J., & Attobrah, E. (2026). Data analytics capabilities and organisational performance at an emerging economy’s local government assembly: the roles of top-management support and data driven decision making. SN Social Sciences, 6(11), Article 623. https://doi.org/10.1007/s43545-026-01925-4

Image Credits: AI Generated

DOI: 10.1007/s43545-026-01925-4

Keywords: data analytics, decision-making, local government, organizational performance, public administration, Ghana, top management support, structural equation modelling, Data, analytics, capabilities, organisational