STRATEGIC TRANSFORMATION IN THE AGE OF AI LINKING DIGITAL INNOVATION TO ORGANIZATIONAL EFFECTIVENESS

• Ali Abdulhussein Gaber Aljashaam

  Al-Furat Al-Awsat Technical University, Iraq

Objective: Artificial Intelligence (AI) is a radically new force that is changing organizational strategies in the rapidly changing digital world, especially in developing economies such as Iraq. The paper seeks to examine the correlation between competences of AI and numerical improvement and administrative function regarding the cultural limitations and economic stability and their distinct features in Iraqi institutions. The application of Resource-inclined View and Dynamic Capabilities Theory, the framework that operates with the ambit of digital innovation by AI is linked with planned revolution and performance findings. Method: This study uses a Structural Equation Modeling (SEM) to test hypotheses via the application of a numerical cross-sectional study with data offered by 200 institutions. Results: Findings of this study indicate that AI capacities have an excessive effect on the promotion of digital innovation, which, subsequently, intercedes the association between AI and institutional performance. The findings also show that digital revolution is a main tool to apply AI technologies in improving planned agility and function of chaotic environment. Novelty: The study does not only fill the existing gaps in empirical research in the Middle East but also offers real-world inferences to potential policymakers and executives interested in endorsing invention determined by AI. It has been suggested to invest in AI, become digitally literate, implement smart systems, and have an innovation-oriented organizational culture. Finally, the paper ends with the future research directions, which would help to contextualize the AI integration in the countries with emerging economies even better.

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