Exploring the Impact of Managerial Capabilities on the Innovation Potential of Artificial Intelligence and Organizational Capabilities: A Literature Review

Ayat Odeibat
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Ayat Odeibat: University of Debrecen, Faculty of Economics and Business, Hungary

Review of Applied Socio-Economic Research, 2023, vol. 26, issue 1, 94-108

Abstract: Cognitive business functions based on artificial intelligence (AI) have been utilized by businesses to enhance competitive advantage, performance, profitability, and economic growth. Given AI's innovation in organizational capability and managerial concerns, there is a limitation in the existing literature about managerial matters that clarify the indirect and direct effects of AI and the adopted technology and its impacts on the organization and the environment. As a necessary consequence, this article explores the impact of managerial capability on AI and organizational capability. This article addresses the subsequent research queries: What impact do the technical capabilities of AI have on managerial capabilities? Will managerial support affect managerial capability? What is the impact of the complexities of AI on managerial capabilities? To what extent does managerial capability have an impact on the compatibility of AI? In order to achieve the research objectives, a set of previous literature was reviewed and analyzed. As shown in the discussion section, by investigating the organizational capability and innovation attributes of AI, the findings of this research clarify the relationship between managerial capabilities and AI adoption.

Keywords: Artificial Intelligence; Diffusion of Innovation Theory; Managerial capability; Organizational capability (search for similar items in EconPapers)
JEL-codes: L2 M11 O3 O33 (search for similar items in EconPapers)
Date: 2023
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