Implications of Artificial Intelligence on Organizational Agility: A PLS-SEM and PLS-POS Approach
Artificial intelligence (AI) has radically changed companies' vision of business development, based on its widespread assimilation in key organisational processes. However, in organisational practice, the implementation of AI has generated major challenges, such as those related to the high...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Editura ASE
2024-05-01
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| Series: | Amfiteatru Economic |
| Subjects: | |
| Online Access: | https://www.amfiteatrueconomic.ro/temp/Article_3311.pdf |
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| Summary: | Artificial intelligence (AI) has radically changed companies' vision of business development,
based on its widespread assimilation in key organisational processes. However, in
organisational practice, the implementation of AI has generated major challenges, such as
those related to the high need for investments in technologies, insufficient level of skill
development, and resistance to change of personnel. At the same time, under the conditions
in which markets become increasingly dynamic, an increasingly emphasised requirement for
companies is to maintain increased organisational agility to quickly adapt to the challenges
of the external environment. Therefore, this study aims to analyse the role of AI in
capitalising on an organisation's digital capabilities as a means of amplifying organisational
agility in order to improve internal and external processes. The research conclusions were
based on the application of a questionnaire to employees from various Romanian sectors of
activity and for data analysis, structural equation modelling (PLS-SEM) and predictionoriented segmentation (PLS-POS) were used. The main results indicate that the more digital
capabilities organisations have, the more agile they become in relation to internal processes
and changes in the external environment. This relationship is facilitated by the use of AI
tools. At the same time, prediction-oriented segmentation highlighted two distinct categories
of organisations in terms of AI transformation: in those in which this process is more
advanced, the mediation effect is stronger. The originality of the study emerges by extending
the PLS-SEM results by respondents’ segmentation through finite mixture partial least
squares (FIMIX-PLS) and PLS-POS, but also by considering AI implications on internal and
external organisational agility, which is less addressed in the literature. The study outlines
several possible managerial interventions, both on AI-related public policies and on the
optimisation of business processes under AI implementation. |
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| ISSN: | 1582-9146 2247-9104 |