Do Decision-Modeling Capabilities Drive Agility and Quality? Validating a BusinessLogic Governance Index (BLGI)

Organizations undergoing digital transformation increasingly rely on structured decision models and robust governance of business logic to sustain agility, quality, and compliance. This study introduced and validated the Business Logic Governance Index (BLGI)—a multidimensional construct encompassing declarative logic, normalization, integrity, and technology independence—to address the lack of an empirical measure of governance quality. Using survey and archival data from 250 professionals in shared services centers and IT-intensive organizations, structural equation modeling revealed that stronger business logic governance significantly improved organizational agility, reduced decision defects, and enhanced requirements and testing quality. Mediation and moderation analyses further demonstrated that representational clarity, structural discipline, and technology independence strengthened the pathways through which governance influenced performance. The findings advanced governance and decision-modeling theory by offering a validated index that captured how logic structures shaped organizational outcomes. In practice, the BLGI provided managers with a diagnostic tool for benchmarking and improving decision-making environments. Future research was recommended to extend the index across industries and to explore its implications for digital governance and policy development in emerging economies.