Implications of Artificial Intelligence on Organizational Agility: A PLS-SEM and PLS-POS Approach

Artificial intelligence (AI) has radically changed companies' vision of business development, based on its widespread assimilation in key organisational processes. However, in organisational practice, the implementation of AI has generated major challenges, such as those related to the high...

Full description

Saved in:
Bibliographic Details
Main Authors: Simona Cătălina Ștefan, Ana Alexandra Olariu, Ștefan Cătălin Popa
Format: Article
Language:English
Published: Editura ASE 2024-05-01
Series:Amfiteatru Economic
Subjects:
Online Access:https://www.amfiteatrueconomic.ro/temp/Article_3311.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850244141208829952
author Simona Cătălina Ștefan
Ana Alexandra Olariu
Ștefan Cătălin Popa
author_facet Simona Cătălina Ștefan
Ana Alexandra Olariu
Ștefan Cătălin Popa
author_sort Simona Cătălina Ștefan
collection DOAJ
description Artificial intelligence (AI) has radically changed companies' vision of business development, based on its widespread assimilation in key organisational processes. However, in organisational practice, the implementation of AI has generated major challenges, such as those related to the high need for investments in technologies, insufficient level of skill development, and resistance to change of personnel. At the same time, under the conditions in which markets become increasingly dynamic, an increasingly emphasised requirement for companies is to maintain increased organisational agility to quickly adapt to the challenges of the external environment. Therefore, this study aims to analyse the role of AI in capitalising on an organisation's digital capabilities as a means of amplifying organisational agility in order to improve internal and external processes. The research conclusions were based on the application of a questionnaire to employees from various Romanian sectors of activity and for data analysis, structural equation modelling (PLS-SEM) and predictionoriented segmentation (PLS-POS) were used. The main results indicate that the more digital capabilities organisations have, the more agile they become in relation to internal processes and changes in the external environment. This relationship is facilitated by the use of AI tools. At the same time, prediction-oriented segmentation highlighted two distinct categories of organisations in terms of AI transformation: in those in which this process is more advanced, the mediation effect is stronger. The originality of the study emerges by extending the PLS-SEM results by respondents’ segmentation through finite mixture partial least squares (FIMIX-PLS) and PLS-POS, but also by considering AI implications on internal and external organisational agility, which is less addressed in the literature. The study outlines several possible managerial interventions, both on AI-related public policies and on the optimisation of business processes under AI implementation.
format Article
id doaj-art-a23512e9f2d248adb02b13357f4530c0
institution OA Journals
issn 1582-9146
2247-9104
language English
publishDate 2024-05-01
publisher Editura ASE
record_format Article
series Amfiteatru Economic
spelling doaj-art-a23512e9f2d248adb02b13357f4530c02025-08-20T01:59:48ZengEditura ASEAmfiteatru Economic1582-91462247-91042024-05-012666 40342010.24818/EA/2024/66/403 Implications of Artificial Intelligence on Organizational Agility: A PLS-SEM and PLS-POS ApproachSimona Cătălina Ștefan0https://orcid.org/0000-0003-4731-6785Ana Alexandra Olariu1https://orcid.org/0000-0002-1153-3502Ștefan Cătălin Popa2https://orcid.org/0000-0001-9221-8936Bucharest University of Economic Studies, Bucharest, RomaniaBucharest University of Economic Studies, Bucharest, RomaniaBucharest University of Economic Studies, Bucharest, RomaniaArtificial intelligence (AI) has radically changed companies' vision of business development, based on its widespread assimilation in key organisational processes. However, in organisational practice, the implementation of AI has generated major challenges, such as those related to the high need for investments in technologies, insufficient level of skill development, and resistance to change of personnel. At the same time, under the conditions in which markets become increasingly dynamic, an increasingly emphasised requirement for companies is to maintain increased organisational agility to quickly adapt to the challenges of the external environment. Therefore, this study aims to analyse the role of AI in capitalising on an organisation's digital capabilities as a means of amplifying organisational agility in order to improve internal and external processes. The research conclusions were based on the application of a questionnaire to employees from various Romanian sectors of activity and for data analysis, structural equation modelling (PLS-SEM) and predictionoriented segmentation (PLS-POS) were used. The main results indicate that the more digital capabilities organisations have, the more agile they become in relation to internal processes and changes in the external environment. This relationship is facilitated by the use of AI tools. At the same time, prediction-oriented segmentation highlighted two distinct categories of organisations in terms of AI transformation: in those in which this process is more advanced, the mediation effect is stronger. The originality of the study emerges by extending the PLS-SEM results by respondents’ segmentation through finite mixture partial least squares (FIMIX-PLS) and PLS-POS, but also by considering AI implications on internal and external organisational agility, which is less addressed in the literature. The study outlines several possible managerial interventions, both on AI-related public policies and on the optimisation of business processes under AI implementation. https://www.amfiteatrueconomic.ro/temp/Article_3311.pdfartificial intelligence (ai)digital capabilitiesorganisational agilitystructural equation modeling (pls-sem)prediction-oriented segmentation (pls-pos)finite mixture partial least squares (fimix-pls)
spellingShingle Simona Cătălina Ștefan
Ana Alexandra Olariu
Ștefan Cătălin Popa
Implications of Artificial Intelligence on Organizational Agility: A PLS-SEM and PLS-POS Approach
Amfiteatru Economic
artificial intelligence (ai)
digital capabilities
organisational agility
structural equation modeling (pls-sem)
prediction-oriented segmentation (pls-pos)
finite mixture partial least squares (fimix-pls)
title Implications of Artificial Intelligence on Organizational Agility: A PLS-SEM and PLS-POS Approach
title_full Implications of Artificial Intelligence on Organizational Agility: A PLS-SEM and PLS-POS Approach
title_fullStr Implications of Artificial Intelligence on Organizational Agility: A PLS-SEM and PLS-POS Approach
title_full_unstemmed Implications of Artificial Intelligence on Organizational Agility: A PLS-SEM and PLS-POS Approach
title_short Implications of Artificial Intelligence on Organizational Agility: A PLS-SEM and PLS-POS Approach
title_sort implications of artificial intelligence on organizational agility a pls sem and pls pos approach
topic artificial intelligence (ai)
digital capabilities
organisational agility
structural equation modeling (pls-sem)
prediction-oriented segmentation (pls-pos)
finite mixture partial least squares (fimix-pls)
url https://www.amfiteatrueconomic.ro/temp/Article_3311.pdf
work_keys_str_mv AT simonacatalinastefan implicationsofartificialintelligenceonorganizationalagilityaplssemandplsposapproach
AT anaalexandraolariu implicationsofartificialintelligenceonorganizationalagilityaplssemandplsposapproach
AT stefancatalinpopa implicationsofartificialintelligenceonorganizationalagilityaplssemandplsposapproach