Abstract

Artificial intelligence (AI) holds potential for enhancing organizational performance, while realizing its strategic value requires more than adoption. This study examines drivers of strategic AI use in organizations following the technology–organization–environment framework. One technological factor (perceived AI affordances), two organizational factors (organizational support and employee digital capability), and three environmental factors (competitive pressure, information intensity, and government support) are examined. These factors are hypothesized to be associated with strategic AI use through perceived value of AI, with entrepreneurial orientation (proactiveness, innovativeness, and risk-taking) as both drivers and moderators. Results show that perceived AI affordances, organizational support, and competitive pressure enhance perceived value of AI, which in turn drives its strategic use. Entrepreneurial orientation directly facilitates strategic use of AI. Only innovativeness strengthens the relationship between perceived value of AI and strategic AI use. The findings provide insights and guidance for organizations seeking to strategically use AI.

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