Organisations are investing heavily in Artificial Intelligence (AI) in order to enhance their analytics and make better decisions and ultimately improve their performance. However, AI adoption alone does not ensure business value. This research addresses this issue by integrating both the Resource-Based and the knowledge-based views of the firm to describe how organisations can derive value from their use of AI for Business Analytics Success (BAS). In this context, AI was viewed as a strategic technological resource of the firm and Knowledge Management (KM) as the organisational capability of the firm that converts the insights generated by AI into actionable knowledge and ultimately into improved performance outcomes. A structural model was developed and tested to illustrate the mediating role of KM in the relationship between AI implementation and BAS. Using survey data from 250 respondents representing multiple industries, SEM was used to compare the direct and mediated effects of AI implementation, KM and BAS. The results showed that there were positive relationships between AI implementation and KM; KM and BAS; and AI and BAS. Furthermore, the results indicated that the indirect relationship between AI and BAS via KM was statistically significant, indicating that KM functions as a partial mediator in the relationship between AI and BAS. The research provides evidence that demonstrates that the theoretical linkages between strategic resources and knowledge-based capabilities exist in a technology-capability-performance logic and also demonstrates that organisations receive greater value from the use of AI than those who do not have established systems of creating, sharing, retrieving and utilising knowledge.
Maen Al Hawari (Thu,) studied this question.