Paper Type
Complete
Paper Number
1644
Description
Artificial intelligence capabilities (AICs) offer organizations significant potential for enhancing business value and competitiveness. However, their impact on organizational capabilities, particularly organizational agility (OA) and IT ambidexterity (ITA), remains relatively unexplored. Drawing on the dynamic capability view (DCV) and AI business value literature, this study posits that AICs have a significant influence on OA and ITA, both of which are vital for maintaining competitiveness. Moreover, we propose that ITA serves as a mediator in the relationship between AICs and OA. Utilizing partial least squares structural equation modelling (PLS-SEM) on survey data from 191 participants, the research reveals that AICs directly and positively affect OA and ITA. However, contrary to the existing IT-enabled agility literature, we discover that ITA does not mediate the AIC-OA relationship. These findings shed light on the multifaceted impact of AICs in nurturing organizational dynamic capabilities, providing insights for both theory and businesses navigating AI implementation.
Recommended Citation
Rawat, Waseem and Barnes, Justin Raymond, "Impact of AI Capabilities on IT Ambidexterity and Organizational Agility" (2024). PACIS 2024 Proceedings. 18.
https://aisel.aisnet.org/pacis2024/track01_aibussoc/track01_aibussoc/18
Impact of AI Capabilities on IT Ambidexterity and Organizational Agility
Artificial intelligence capabilities (AICs) offer organizations significant potential for enhancing business value and competitiveness. However, their impact on organizational capabilities, particularly organizational agility (OA) and IT ambidexterity (ITA), remains relatively unexplored. Drawing on the dynamic capability view (DCV) and AI business value literature, this study posits that AICs have a significant influence on OA and ITA, both of which are vital for maintaining competitiveness. Moreover, we propose that ITA serves as a mediator in the relationship between AICs and OA. Utilizing partial least squares structural equation modelling (PLS-SEM) on survey data from 191 participants, the research reveals that AICs directly and positively affect OA and ITA. However, contrary to the existing IT-enabled agility literature, we discover that ITA does not mediate the AIC-OA relationship. These findings shed light on the multifaceted impact of AICs in nurturing organizational dynamic capabilities, providing insights for both theory and businesses navigating AI implementation.
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