HR ANALYTICS CAPABILITY AS A DYNAMIC ORGANIZATIONAL RESOURCE: THE MEDIATING ROLE OF DATA‑DRIVEN DECISION‑MAKING IN FIRM PERFORMANCE

This study examines whether and how HR analytics capability (HRAC) functions as a dynamic organizational resource to enhance firm performance, with a specific focus on the mediating mechanism of data driven decision making (DDDM). Drawing on dynamic capabilities theory, we argue that HRAC alone does not directly translate into superior performance; instead, its value is realized only when organizations develop robust DDDM routines that convert analytical insights into strategic actions. We tested this mediated model using time‑lagged survey data collected from senior HR and operations executives across medium‑to‑large enterprises in manufacturing and service sectors. HRAC was assessed as a multi‑dimensional construct encompassing data infrastructure, analytical skills, and managerial interpretation capability. DDDM was measured through the extent to which HR metrics inform recruitment, retention, and workforce planning decisions. Firm performance was captured via both perceived operational efficiency and objective return on assets. Structural equation modeling with bootstrapped confidence intervals revealed that HRAC has a significant positive indirect effect on firm performance (β = 0.34, p < 0.001) fully mediated by DDDM. The direct path from HRAC to performance was non‑ significant when the mediator was included, underscoring the centrality of decision‑ making routines. This study resolves contradictory prior findings by empirically isolating the mechanism through which HR analytics creates tangible business value. For practitioners, results imply that technology investments must be complemented by process‑ level capabilities in evidence‑ based HRM. Theoretical contributions include conceptualizing HRAC as a higher‑ order dynamic capability and offering a validated mediation pathway.