Architecting Agility: Unraveling the Impact of AI Capability on Organizational Change and Competitive Advantage

Research output: Chapter in Book/Report/Conference proceedingConference Article in proceedingAcademicpeer-review

Abstract

With the progressing developments of Artificial Intelligence (AI) in business and society, understanding the role of AI in enabling organizational change and agility has become an increasingly relevant area of inquiry. However, despite this interest, the specific effects of an AI architecture capability that helps firms design and deploy AI technologies in the organization on firms’ dynamic change capability remains an underexplored area in the literature. To address this gap, we built upon the dynamic capabilities view and conducted an extensive survey of senior business and IT managers in the Netherlands. Based on a sample of 168 final respondents, we tested a research model with associated hypotheses using a composite-based structural equation modeling (SEM) approach. The analyses confirm the hypotheses and show that AI architecture positively enables the firm’s change capability. Furthermore, the firm’s change capability positively impacts operational agility. Hence, our work extends the current knowledge base of dynamic capabilities while offering various implications for practice. These practical recommendations could facilitate managers overcoming change capability and agility challenges.
Original languageEnglish
Title of host publicationBusiness Modeling and Software Design
Subtitle of host publication13th International Symposium, BMSD 2023, Utrecht, The Netherlands, July 3–5, 2023, Proceedings
EditorsBoris Shishkov
Place of PublicationCham
PublisherSpringer
Pages203-213
Number of pages11
Volume483
Edition1
ISBN (Electronic)978-3-031-36757-1
ISBN (Print)978-3-031-36756-4
DOIs
Publication statusPublished - Jul 2023
Event13th International Symposium on Business Modeling and Software Design - OU, Utrecht, Netherlands
Duration: 3 Jul 20235 Jul 2023
Conference number: 13
https://is-bmsd.org/

Publication series

SeriesLecture Notes in Business Information Processing
Volume483
ISSN1865-1348

Conference

Conference13th International Symposium on Business Modeling and Software Design
Abbreviated titleBMSD 2023
Country/TerritoryNetherlands
CityUtrecht
Period3/07/235/07/23
Internet address

Keywords

  • AI Architecture Capability
  • Artificial Intelligence (AI)
  • Change Capability
  • Composite-based structural equation modeling
  • Dynamic Capabilities
  • Operational Agility

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