IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6239-709-5_7.html

Advancing Business Performance Through Artificial Intelligence: The Interplay of Digital Competence, Innovation, and Operational Efficiency

Author

Listed:
  • Agustian Agustian

    (Hasanuddin University)

  • Indrianty Sudirman

    (Hasanuddin University)

Abstract

This study investigates the relationship between Digital Competence (DC), Innovation (I), Operational Efficiency (OE), and Organizational Performance (OP) within the context of Artificial Intelligence (AI) adoption. As AI continues to transform industries, understanding how digital competence, innovation, and operational efficiency interact to enhance organizational performance becomes crucial for businesses striving to gain a competitive edge. A quantitative approach was adopted, utilizing surveys distributed to managers in manufacturing companies in Makassar and Gowa, Indonesia. The findings reveal that digital competence has a strong positive impact on organizational performance (p = 0.001), indicating its central role in driving performance improvements. Innovation also positively influences organizational performance (p = 0.000), although to a lesser extent than digital competence. Operational efficiency further contributes significantly to organizational performance (p = 0.001), demonstrating that improved processes and resource management lead to better business outcomes. The study underscores the importance of integrating AI within an organization’s digital transformation strategy, highlighting the need for continuous development of digital skills, fostering innovation, and optimizing operational processes. These insights provide valuable guidance for organizations aiming to enhance their performance through AI adoption and digital transformation.

Suggested Citation

  • Agustian Agustian & Indrianty Sudirman, 2026. "Advancing Business Performance Through Artificial Intelligence: The Interplay of Digital Competence, Innovation, and Operational Efficiency," Advances in Economics, Business and Management Research,, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-709-5_7
    DOI: 10.2991/978-94-6239-709-5_7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:spr:advbcp:978-94-6239-709-5_7. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.