The impact of artificial intelligence on organizational performance: The mediating role of employee productivity
The adoption of Artificial intelligence (AI) technology in the workplace is becoming more common, with several research highlighting both its positive and adverse influence on employee productivity (EP) and organizational performance (OP). Furthermore, there is a scarcity of research focused on the...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-03-01
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| Series: | Journal of Open Innovation: Technology, Market and Complexity |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2199853125000095 |
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| author | Belayneh Yitayew Kassa Eyob Ketema Worku |
| author_facet | Belayneh Yitayew Kassa Eyob Ketema Worku |
| author_sort | Belayneh Yitayew Kassa |
| collection | DOAJ |
| description | The adoption of Artificial intelligence (AI) technology in the workplace is becoming more common, with several research highlighting both its positive and adverse influence on employee productivity (EP) and organizational performance (OP). Furthermore, there is a scarcity of research focused on the mediator role of EP in the nexus between AI and OP. This ambiguity underscores the need for a comprehensive understanding of how AI interacts with EP and OP within specific organizational contexts, such as Ethio Telecom. Therefore, this study aimed to investigate the impact of AI on OP with a mediating role of EP. Quantitative data was collected through an online survey using Kobo Toolbox from 172 purposively selected employees. AI was modeled as third-order formative construct, while EP and OP were first-order reflective constructs. The variables were measured using validated multi-item questionnaires with a 7-point Likert scale. The association between these variables was investigated with PLS-SEM in SMART PLS 4.1.03. The results showed that there were positive and significant relationships between AI and EP, AI and OP, EP and OP, and AI on OP through EP. Furthermore, EP served as a partial mediator between OP and AI. These findings are consistent with previous studies and theories, such as the resource-based view and human capital theories. The results suggest that organizations can dramatically improve performance in the digital age by implementing AI and creating a work environment that encourages productivity. |
| format | Article |
| id | doaj-art-1d1b5f44b9be47e8b3e65484080daff5 |
| institution | Kabale University |
| issn | 2199-8531 |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Open Innovation: Technology, Market and Complexity |
| spelling | doaj-art-1d1b5f44b9be47e8b3e65484080daff52025-01-19T06:24:56ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312025-03-01111100474The impact of artificial intelligence on organizational performance: The mediating role of employee productivityBelayneh Yitayew Kassa0Eyob Ketema Worku1Department of Business Administration, Lunar International College, P.O Box 23770, Addis Ababa, Ethiopia; Department of Automotive Engineering, Arba Minch University, P.O Box 21, Arba Minch, Ethiopia; Corresponding author at: Department of Business Administration, Lunar International College, P.O Box 23770, Addis Ababa, Ethiopia.Department of Business Administration, Lunar International College, P.O Box 23770, Addis Ababa, Ethiopia; Strategic and Performance Analysis Expert, Ethiopian Telecommunication Corporation, Addis Ababa, EthiopiaThe adoption of Artificial intelligence (AI) technology in the workplace is becoming more common, with several research highlighting both its positive and adverse influence on employee productivity (EP) and organizational performance (OP). Furthermore, there is a scarcity of research focused on the mediator role of EP in the nexus between AI and OP. This ambiguity underscores the need for a comprehensive understanding of how AI interacts with EP and OP within specific organizational contexts, such as Ethio Telecom. Therefore, this study aimed to investigate the impact of AI on OP with a mediating role of EP. Quantitative data was collected through an online survey using Kobo Toolbox from 172 purposively selected employees. AI was modeled as third-order formative construct, while EP and OP were first-order reflective constructs. The variables were measured using validated multi-item questionnaires with a 7-point Likert scale. The association between these variables was investigated with PLS-SEM in SMART PLS 4.1.03. The results showed that there were positive and significant relationships between AI and EP, AI and OP, EP and OP, and AI on OP through EP. Furthermore, EP served as a partial mediator between OP and AI. These findings are consistent with previous studies and theories, such as the resource-based view and human capital theories. The results suggest that organizations can dramatically improve performance in the digital age by implementing AI and creating a work environment that encourages productivity.http://www.sciencedirect.com/science/article/pii/S2199853125000095Artificial IntelligenceEmployee ProductivityOrganizational PerformanceMediation Analysis |
| spellingShingle | Belayneh Yitayew Kassa Eyob Ketema Worku The impact of artificial intelligence on organizational performance: The mediating role of employee productivity Journal of Open Innovation: Technology, Market and Complexity Artificial Intelligence Employee Productivity Organizational Performance Mediation Analysis |
| title | The impact of artificial intelligence on organizational performance: The mediating role of employee productivity |
| title_full | The impact of artificial intelligence on organizational performance: The mediating role of employee productivity |
| title_fullStr | The impact of artificial intelligence on organizational performance: The mediating role of employee productivity |
| title_full_unstemmed | The impact of artificial intelligence on organizational performance: The mediating role of employee productivity |
| title_short | The impact of artificial intelligence on organizational performance: The mediating role of employee productivity |
| title_sort | impact of artificial intelligence on organizational performance the mediating role of employee productivity |
| topic | Artificial Intelligence Employee Productivity Organizational Performance Mediation Analysis |
| url | http://www.sciencedirect.com/science/article/pii/S2199853125000095 |
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