The Impact of Artificial Intelligence Adoption on Business Development and Organizational Performance: The Mediating Role of AI-Enabled Innovation
DOI:
https://doi.org/10.63084/econova.v1i01.116Keywords:
artificial intelligence adoption, organizational performance, business development, AI-enabled innovation, dynamic capabilities, innovation mediation, digital transformationAbstract
The rapid proliferation of artificial intelligence (AI) technologies has prompted organizations to explore AI adoption as a strategic lever for competitive advantage. This analytical research examines the relationship between AI adoption, business development, and organizational performance, with particular emphasis on the mediating role of AI-enabled innovation. Through systematic desk-research analyzing empirical and conceptual studies published between 2016 and 2023, this paper synthesizes evidence on how AI adoption influences organizational outcomes. The findings reveal that AI adoption positively impacts firm performance through multiple pathways, including productivity gains, cost efficiency, and enhanced decision-making capabilities. Critically, AI-enabled innovation, manifested through dynamic capabilities, knowledge integration, and process reconfiguration, serves as a key mediating mechanism linking AI adoption to superior organizational performance and business development outcomes. The conceptual framework integrates resource-based view and dynamic capabilities perspectives, proposing that AI adoption enhances organizational performance and business development both directly and indirectly through AI-enabled innovation capabilities. Empirical evidence demonstrates significant productivity improvements, with studies reporting up to 14.2% increases in total factor productivity from AI penetration. However, the magnitude of effects varies substantially across organizational contexts, AI types, and implementation approaches. The paper contributes theoretical insights into AI-driven value creation mechanisms and offers practical implications for managers seeking to leverage AI for organizational transformation.
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