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Transformational Leadership, AI Competitiveness, and Project Performance: A Moderation Analysis

Author

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  • Kingsley Ofosu-Ampong

    (Heritage Christian University, & CIAT)

  • Julius Adu-Ntim

    (Wisconsin International University College)

Abstract

This study examines how leadership styles interact with artificial intelligence (AI) competitiveness to influence project outcomes in multinational organizations. The research analyzed data from 316 employees across 3 multinational organizations in Ghana using hierarchical regression analysis. The study assessed how AI competitiveness variables, moderated by transformational leadership, impact project performance. The results demonstrate that transformational leadership positively moderates the relationship between AI scope, integration, and frequency of AI use, leading to enhanced project outcomes. However, the interaction between AI-enabled process automation and transformational leadership revealed a negative effect on performance, suggesting that excessive automation may diminish leadership effectiveness. Notably, AI satisfaction did not significantly influence project performance in a high-level automation environment as some leadership oversight is lost, thereby challenging conventional assumptions about technology acceptance and productivity. This research advances our understanding of how leadership strategies can either enhance or constrain AI competitive effectiveness in project-oriented teams. The findings emphasize the importance of striking a balance between AI-enabled processes and team dynamics while highlighting transformational leadership’s crucial role in managing technological integration in project environments. Organizations operating across national boundaries should develop leadership approaches that effectively promote AI integration and usage while maintaining appropriate levels of process automation to maximize the benefits of AI systems.

Suggested Citation

  • Kingsley Ofosu-Ampong & Julius Adu-Ntim, 2025. "Transformational Leadership, AI Competitiveness, and Project Performance: A Moderation Analysis," International Journal of Global Business and Competitiveness, Springer, vol. 20(2), pages 67-79, December.
    • Handle: RePEc:spr:ijogbc:v:20:y:2025:i:2:d:10.1007_s42943-025-00124-x
    DOI: 10.1007/s42943-025-00124-x
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    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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