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

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  • Ayat Odeibat

    (University of Debrecen, Faculty of Economics and Business, Hungary)

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.

Suggested Citation

  • Ayat Odeibat, 2023. "Exploring the Impact of Managerial Capabilities on the Innovation Potential of Artificial Intelligence and Organizational Capabilities: A Literature Review," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 26(1), pages 94-108, December.
    • Handle: RePEc:rse:wpaper:v:26:y:2023:i:2:p:94-108
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    More about this item

    Keywords

    Artificial Intelligence; Diffusion of Innovation Theory; Managerial capability; Organizational capability;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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