Predictive analytics, process optimization, firm performance and innovation in Moroccan firms: the mediating role of cognitive biases and the moderating role of strategic flexibility

With the rise of digitalization and increasing economic uncertainty, firms are increasingly relying on predictive analytics and process optimization to enhance performance. While prior studies emphasize their strategic value, the mechanisms through which these technologies shape organizational outcomes remain underexplored, particularly regarding cognitive and organizational contexts. This study proposes an integrative model linking predictive analytics, process optimization, and performance, while examining the mediating role of cognitive biases and the moderating effect of strategic flexibility. It also investigates how performance fosters innovation dynamics. Drawing on the resource-based view, dynamic capabilities theory, and bounded rationality theory, we test our hypotheses on a sample of 319 executives from large Moroccan industrial firms. The findings confirm the positive impact of predictive analytics and process optimization on performance. However, this relationship is partially mediated by cognitive biases and reinforced by strategic flexibility. Furthermore, performance itself promotes the intensification of innovation efforts, underscoring feedback effects between efficiency gains and innovation orientation. These results suggest that technological investment alone is insufficient for competitiveness. Cognitive capabilities of decision-makers and the adaptability of strategy are also critical. The study provides theoretical and managerial implications for building agile, innovation-driven organizations in uncertain environments.