Enhancing the Effectiveness of Decision-Making Through Data-Driven DSS in Sri Lanka.

Abstract

Effective decision-making is essential for enhancing operational efficiency and performance in the dynamic supermarket sector in Sri Lanka's supermarket industry. The impact of Data-Driven Decision Support Systems (DDSS) presents a valuable opportunity to improve the effectiveness of managerial decisionmaking processes. Despite the proven advantages of Decision Support Systems (DSS) in streamlining decisions and increasing responsiveness, implementation remains limited across many supermarkets. This study investigates the role and effectiveness of DSS components, including the database, database management system, data directory, and query facility, in supporting decision-making among middle- and top-level managers in supermarket operations. Using a quantitative research approach, we collected data using a structured questionnaire with 37 items, each measured on a five-point Likert scale. A conceptual framework was developed to analyse the relationships between key DSS components (independent variables) and managerial decision-making effectiveness (dependent variable). Responses were obtained through simple random samples from selected supermarket branch managers. Structural Equation Modelling (SEM) was employed to test the research hypotheses and validate the conceptual model. Findings reveal that DSS implementation significantly enhances operational decision-making, particularly at the branch management level. The results underscore the positive impact of well-integrated DSS components in improving decision quality, operational efficiency, and overall performance in the supermarket sector. This research fills a critical gap by identifying specific DSS systems that contribute most effectively to supermarket managerial decision-making. Future studies are recommended to expand the scope by incorporating longitudinal data and exploring sector-wide technological adoption barriers. The insights generated are valuable to supermarket managers, policymakers, and technology developers aiming to optimise decision-making processes and drive innovation in supermarket operations.