The mediating effect of data literacy competence in the relationship between data governance and data-driven culture

Purpose This research investigates the critical role of data governance (DG) in shaping a data-driven culture (DDC) within organizations, recognizing the transformative potential of data utilization for efficiency, opportunities, and productivity. The study delves into the influence of DG on DDC, emphasizing the mediating effect of data literacy (DL). Design/methodology/approach The study empirically assesses 125 experienced managers in Indonesian public service sector organizations using a quantitative approach. Structural Equation Modeling (SEM) analysis was chosen to examine the impact of DG on DDC and the mediating effects of DL on this relationship. Findings The findings highlight that both DG and DL serve as antecedents to DDC, with DL identified as a crucial mediator, explaining a significant portion of the effects between DG and DDC. Research limitations/implications Beyond unveiling these relationships, the study discusses practical implications for organizational leaders and managers, emphasizing the need for effective policies and strategies in data-driven decision-making. Originality/value This research fills an important research gap by introducing an original model and providing empirical evidence on the dynamic interplay between DG, DL, and DDC, contributing to the evolving landscape of data-driven organizational cultures.