IDEAS home Printed from https://ideas.repec.org/a/eee/techno/v135y2024ics0166497224001147.html
   My bibliography  Save this article

Assessing the nexus of Generative AI adoption, ethical considerations and organizational performance

Author

Listed:
  • Rana, Nripendra P.
  • Pillai, Rajasshrie
  • Sivathanu, Brijesh
  • Malik, Nishtha

Abstract

Numerous enterprises employ Generative AI (GenAI) for a plethora of business operations, which can enhance organizational effectiveness. The adoption might be driven by multiple factors influencing the business landscape. Additionally, numerous ethical considerations could impact the deployment of GenAI. This unique study investigated how organizations adopt GenAI and its effects on their performance. Further, this research utilized institutional theory and ethical guidelines for AI design to develop a research framework examining how organizations adopt GenAI and its impact on their performance. A survey of 384 managers from information technology (IT) and information technology-enabled services (ITeS) companies was conducted. Data analysis was done using PLS-SEM to examine and validate the proposed model. The study outcome reveals that institutional pressures, i.e., coercive, normative and mimetic forces, influence the use of GenAI in organizations. It was also found that fairness, accountability, transparency, accuracy and autonomy influence the use of GenAI. Also, the results divulge that the use of GenAI influences organizational performance and is moderated by organizational innovativeness. This study provides insights to developers of GenAI, senior management of companies, the government and IT policymakers by highlighting the institutional pressures and ethical principles influencing the use of GenAI.

Suggested Citation

  • Rana, Nripendra P. & Pillai, Rajasshrie & Sivathanu, Brijesh & Malik, Nishtha, 2024. "Assessing the nexus of Generative AI adoption, ethical considerations and organizational performance," Technovation, Elsevier, vol. 135(C).
    • Handle: RePEc:eee:techno:v:135:y:2024:i:c:s0166497224001147
    DOI: 10.1016/j.technovation.2024.103064
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166497224001147
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.technovation.2024.103064?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. A. Zafer Acar & Mehtap Özşahin, 2018. "The Relationship Among Strategic Orientations, Organizational Innovativeness, And Business Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-27, January.
    2. Song, Mengmeng & Xing, Xinyu & Duan, Yucong & Cohen, Jason & Mou, Jian, 2022. "Will artificial intelligence replace human customer service? The impact of communication quality and privacy risks on adoption intention," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    3. Shahzad, Khuram & Zhang, Qingyu & Ashfaq, Muhammad & Zafar, Abaid Ullah & Ahmad, Bilal, 2024. "Pre- to post-adoption of blockchain technology in supply chain management: Influencing factors and the role of firm size," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    4. Sarkis, Joseph & Zhu, Qinghua & Lai, Kee-hung, 2011. "An organizational theoretic review of green supply chain management literature," International Journal of Production Economics, Elsevier, vol. 130(1), pages 1-15, March.
    5. Brijesh Sivathanu, 2018. "Adoption of Online Subscription Beauty Boxes: A Behavioural Reasoning Theory (BRT) Perspective," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 16(4), pages 19-40, October.
    6. Daqing Zheng & Jin Chen & Lihua Huang & Cheng Zhang, 2013. "E-government adoption in public administration organizations: integrating institutional theory perspective and resource-based view," European Journal of Information Systems, Taylor & Francis Journals, vol. 22(2), pages 221-234, March.
    7. Ameye, Nicolas & Bughin, Jacques & van Zeebroeck, Nicolas, 2023. "How uncertainty shapes herding in the corporate use of artificial intelligence technology," Technovation, Elsevier, vol. 127(C).
    8. Brijesh Sivathanu, 2019. "Adoption of Industrial IoT (IIoT) in Auto-Component Manufacturing SMEs in India," Information Resources Management Journal (IRMJ), IGI Global, vol. 32(2), pages 52-75, April.
    9. Hu, Qian & Lu, Yaobin & Pan, Zhao & Gong, Yeming & Yang, Zhilin, 2021. "Can AI artifacts influence human cognition? The effects of artificial autonomy in intelligent personal assistants," International Journal of Information Management, Elsevier, vol. 56(C).
    10. Bag, Surajit & Pretorius, Jan Ham Christiaan & Gupta, Shivam & Dwivedi, Yogesh K., 2021. "Role of institutional pressures and resources in the adoption of big data analytics powered artificial intelligence, sustainable manufacturing practices and circular economy capabilities," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    11. Qian Hu & Yaobin Lu & Zhao Pan & Yeming Gong & Zhiling Yang, 2021. "Can AI artifacts influence human cognition? : The effects of artificial autonomy in intelligent personal assistants," Post-Print hal-03188233, HAL.
    12. Fosso Wamba, Samuel & Queiroz, Maciel M. & Chiappetta Jabbour, Charbel Jose & Shi, Chunming (Victor), 2023. "Are both generative AI and ChatGPT game changers for 21st-Century operations and supply chain excellence?," International Journal of Production Economics, Elsevier, vol. 265(C).
    13. Mariani, Marcello M. & Machado, Isa & Magrelli, Vittoria & Dwivedi, Yogesh K., 2023. "Artificial intelligence in innovation research: A systematic review, conceptual framework, and future research directions," Technovation, Elsevier, vol. 122(C).
    14. Peng Hu & Yaobin Lu & Yeming Gong, 2021. "Dual humanness and trust in conversational AI : A person-centered approach," Post-Print hal-03598766, HAL.
    15. Talaei-Khoei, Amir & Yang, Alan T. & Masialeti, Masialeti, 2024. "How does incorporating ChatGPT within a firm reinforce agility-mediated performance? The moderating role of innovation infusion and firms’ ethical identity," Technovation, Elsevier, vol. 132(C).
    16. Brady D. Lund & Ting Wang & Nishith Reddy Mannuru & Bing Nie & Somipam Shimray & Ziang Wang, 2023. "ChatGPT and a new academic reality: Artificial Intelligence‐written research papers and the ethics of the large language models in scholarly publishing," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 74(5), pages 570-581, May.
    17. Tsou, Hung-Tai & Hsu, Sheila Hsuan-Yu, 2015. "Performance effects of technology–organization–environment openness, service co-production, and digital-resource readiness: The case of the IT industry," International Journal of Information Management, Elsevier, vol. 35(1), pages 1-14.
    18. Parteka, Aleksandra & Kordalska, Aleksandra, 2023. "Artificial intelligence and productivity: global evidence from AI patent and bibliometric data," Technovation, Elsevier, vol. 125(C).
    19. Aydiner, Arafat Salih & Tatoglu, Ekrem & Bayraktar, Erkan & Zaim, Selim & Delen, Dursun, 2019. "Business analytics and firm performance: The mediating role of business process performance," Journal of Business Research, Elsevier, vol. 96(C), pages 228-237.
    20. Akter, Shahriar & Hossain, Md Afnan & Sajib, Shahriar & Sultana, Saida & Rahman, Mahfuzur & Vrontis, Demetris & McCarthy, Grace, 2023. "A framework for AI-powered service innovation capability: Review and agenda for future research," Technovation, Elsevier, vol. 125(C).
    21. Dubey, Rameshwar & Gunasekaran, Angappa & Childe, Stephen J. & Papadopoulos, Thanos & Wamba, Samuel Fosso & Song, Malin, 2016. "Towards a theory of sustainable consumption and production: Constructs and measurement," Resources, Conservation & Recycling, Elsevier, vol. 106(C), pages 78-89.
    22. Messerschmidt, Christian & Hinz, Oliver, 2013. "Explaining the Adoption of Grid Computing: An Integrated Institutional Theory and Organizational Capability Approach," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 63397, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    23. Wang, Yu-Yin & Wang, Yi-Shun & Lin, Tung-Ching, 2018. "Developing and validating a technology upgrade model," International Journal of Information Management, Elsevier, vol. 38(1), pages 7-26.
    24. Ciftci, Ilhan & Tatoglu, Ekrem & Wood, Geoffrey & Demirbag, Mehmet & Zaim, Selim, 2019. "Corporate governance and firm performance in emerging markets: Evidence from Turkey," International Business Review, Elsevier, vol. 28(1), pages 90-103.
    25. Gursoy, Dogan & Chi, Oscar Hengxuan & Lu, Lu & Nunkoo, Robin, 2019. "Consumers acceptance of artificially intelligent (AI) device use in service delivery," International Journal of Information Management, Elsevier, vol. 49(C), pages 157-169.
    26. Shin, Donghee & Zhong, Bu & Biocca, Frank A., 2020. "Beyond user experience: What constitutes algorithmic experiences?," International Journal of Information Management, Elsevier, vol. 52(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ailing Liu & Shaofeng Wang, 2024. "Generative artificial intelligence (GenAI) and entrepreneurial performance: implications for entrepreneurs," The Journal of Technology Transfer, Springer, vol. 49(6), pages 2389-2412, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shore, Adam & Tiwari, Manisha & Tandon, Priyanka & Foropon, Cyril, 2024. "Building entrepreneurial resilience during crisis using generative AI: An empirical study on SMEs," Technovation, Elsevier, vol. 135(C).
    2. Xie, Yuguang & Liang, Changyong & Zhou, Peiyu & Jiang, Li, 2024. "Exploring the influence mechanism of chatbot-expressed humor on service satisfaction in online customer service," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    3. Dubey, Rameshwar & Gunasekaran, Angappa & Papadopoulos, Thanos, 2024. "Benchmarking operations and supply chain management practices using Generative AI: Towards a theoretical framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 189(C).
    4. Di Vaio, Assunta & Hassan, Rohail & Alavoine, Claude, 2022. "Data intelligence and analytics: A bibliometric analysis of human–Artificial intelligence in public sector decision-making effectiveness," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    5. Yi Sun & Shihui Li & Lingling Yu, 2022. "The dark sides of AI personal assistant: effects of service failure on user continuance intention," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(1), pages 17-39, March.
    6. Queiroz, Maciel M. & Fosso Wamba, Samuel, 2019. "Blockchain adoption challenges in supply chain: An empirical investigation of the main drivers in India and the USA," International Journal of Information Management, Elsevier, vol. 46(C), pages 70-82.
    7. Oesterreich, Thuy Duong & Anton, Eduard & Teuteberg, Frank & Dwivedi, Yogesh K, 2022. "The role of the social and technical factors in creating business value from big data analytics: A meta-analysis," Journal of Business Research, Elsevier, vol. 153(C), pages 128-149.
    8. Castro-Lopez, Adrian & Iglesias, Victor & Santos-Vijande, María Leticia, 2023. "Organizational capabilities and institutional pressures in the adoption of circular economy," Journal of Business Research, Elsevier, vol. 161(C).
    9. Prithvi Roy & Badrinarayan Srirangam Ramaprasad & Manan Chakraborty & Nandan Prabhu & Shreelatha Rao, 2024. "Customer Acceptance of Use of Artificial Intelligence in Hospitality Services: An Indian Hospitality Sector Perspective," Global Business Review, International Management Institute, vol. 25(3), pages 832-851, June.
    10. Maya Novitasari & Anggita Langgeng Wijaya & Nindya Mariana Agustin & Ardi Gunardi & Leo‐Paul Dana, 2023. "Corporate social responsibility and firm performance: Green supply chain management as a mediating variable," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 267-276, January.
    11. Yao, Qi & Hu, Chao & Zhou, Wenkai, 2024. "The impact of customer privacy concerns on service robot adoption intentions: A credence/experience service typology perspective," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    12. Kumar Mangla, Sachin & Börühan, Gülmüş & Ersoy, Pervin & Kazancoglu, Yigit & Song, Malin, 2021. "Impact of information hiding on circular food supply chains in business-to-business context," Journal of Business Research, Elsevier, vol. 135(C), pages 1-18.
    13. Kayeser Fatima, Johra & Khan, Md Irfanuzzaman & Bahmannia, Somayeh & Chatrath, Sarvjeet Kaur & Dale, Naomi F. & Johns, Raechel, 2024. "Rapport with a chatbot? The underlying role of anthropomorphism in socio-cognitive perceptions of rapport and e-word of mouth," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    14. Hu, Qian & Pan, Zhao, 2023. "Can AI benefit individual resilience? The mediation roles of AI routinization and infusion," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    15. Guo, Wenshan & Luo, Qiangqiang, 2023. "Investigating the impact of intelligent personal assistants on the purchase intentions of Generation Z consumers: The moderating role of brand credibility," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    16. Kang, Weiyao & Shao, Bingjia, 2023. "The impact of voice assistants’ intelligent attributes on consumer well-being: Findings from PLS-SEM and fsQCA," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    17. Ghobakhloo, Morteza & Asadi, Shahla & Iranmanesh, Mohammad & Foroughi, Behzad & Mubarak, Muhammad Faraz & Yadegaridehkordi, Elaheh, 2023. "Intelligent automation implementation and corporate sustainability performance: The enabling role of corporate social responsibility strategy," Technology in Society, Elsevier, vol. 74(C).
    18. Gao, Wei & Jiang, Ning & Guo, Qingqing, 2023. "How do virtual streamers affect purchase intention in the live streaming context? A presence perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    19. Huang, Yi-Chun & Chen, Chih Ta, 2022. "Exploring institutional pressures, firm green slack, green product innovation and green new product success: Evidence from Taiwan's high-tech industries," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    20. Goto, Masashi, 2023. "Anticipatory innovation of professional services: The case of auditing and artificial intelligence," Research Policy, Elsevier, vol. 52(8).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:techno:v:135:y:2024:i:c:s0166497224001147. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/01664972 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.