Artificial Intelligence Capabilities as a Catalyst for Enhanced Organizational Performance: The Importance of Cultivating a Data-Driven Culture

Due to the rise in popularity of artificial intelligence (AI), researchers are increasingly focused on understanding its impact on firm performance. This study, inspired by the resource-based view (RBV), introduces a model examining the effects of AI capability on data-driven culture (DDC) and the mediating role DDC plays in the relationship between AI capabilities and firm performance (FP). Data was collected from 148 medium- to high-level company leaders across various sectors in the United States. The findings indicate that AI capability positively influences DDC, which, in turn, positively affects FP. Furthermore, DDC has been identified as a partial mediator in the association between AI capability and FP, enhancing the overall impact of AI on organizational outcomes. These findings highlight the significance of investing not only in AI technologies but also fostering a strong data-driven culture to maximize performance benefits. This study adds to the existing literature by emphasizing the critical interplay between technological capabilities and organizational culture in driving firm performance, offering valuable insights for both researchers and practitioners.