The Mediating Role of IT Ambidexterity in the Relationship between Artificial Intelligence Capability and Organisational Agility

Waseem Rawat () and Justin Barnes ()
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Waseem Rawat: Gordon Institute of Business Science at the University of Pretoria, Senior Manager at Toyota South Africa Motors.
Justin Barnes: Toyota Wessels Institute for Manufacturing Studies, Gordon Institute of Business Science at the University of Pretoria, and B&M Analysts.

No 2022-14, SARChI-ID Working Papers from SARChI Industrial Development (SARChI-ID), University of Johannesburg (UJ)

Abstract: Artificial intelligence capabilities (AICs) are of particular interest, given the contemporary business challenges facing firms. However, their effect on organisational agility (OA) and information technology ambidexterity (ITA), two key organisational capabilities required for competitiveness, is still unknown. To address this gap, the study assesses the impact of AICs on ITA and OA. To test these relationships, a higher-order structural model was developed and tested with a sample of 173 survey respondents. The results indicate AICs can foster OA, and ITA, but that ITA does not translate an AIC into OA. Investing in complementary AI resources to harness AICs is also emphasised.

Keywords: Artificial Intelligence (AI); Artificial Intelligence Capability (AIC); Dynamic Capability View (DCV); Information Technology Ambidexterity (ITA); Organisational Agility (OA); Resource Based View (RBV) (search for similar items in EconPapers)
JEL-codes: C12 D22 D23 L29 L60 M15 O32 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2022-11, Revised 2022-11
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