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The Mediating Role of IT Ambidexterity in the Relationship between Artificial Intelligence Capability and Organisational Agility

Author

Listed:
  • Waseem Rawat

    (Gordon Institute of Business Science at the University of Pretoria, Senior Manager at Toyota South Africa Motors.)

  • Justin Barnes

    (Toyota Wessels Institute for Manufacturing Studies, Gordon Institute of Business Science at the University of Pretoria, and B&M Analysts.)

Abstract

Artificial intelligence capabilities (AICs) are of particular interest, given the contemporary business challenges facing firms. However, their effect on organisational agility (OA) and information technology ambidexterity (ITA), two key organisational capabilities required for competitiveness, is still unknown. To address this gap, the study assesses the impact of AICs on ITA and OA. To test these relationships, a higher-order structural model was developed and tested with a sample of 173 survey respondents. The results indicate AICs can foster OA, and ITA, but that ITA does not translate an AIC into OA. Investing in complementary AI resources to harness AICs is also emphasised.

Suggested Citation

  • Waseem Rawat & Justin Barnes, 2022. "The Mediating Role of IT Ambidexterity in the Relationship between Artificial Intelligence Capability and Organisational Agility," SARChI-ID Working Papers 2022-14, SARChI Industrial Development (SARChI-ID), University of Johannesburg (UJ), revised Nov 2022.
  • Handle: RePEc:adz:wpaper:202214
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    Keywords

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    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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