From AI Capability to Enhanced Organizational Performance: The Path Through Organizational Creativity

This study explored the transformative role of artificial intelligence (AI) in contemporary business environments. This study investigates the impact of AI capabilities on organizational creativity and performance in manufacturing firms in the USA. Drawing on Resource-Based Theory (RBT), AI capabilities are conceptualized as strategic assets that enhance creative processes and operational effectiveness. A survey of CEOs and top management from manufacturing companies provided data for partial least squares structural equation Modeling (PLS-SEM) analysis. The results confirm the significant positive direct effect of AI capability on organizational creativity, underscoring AI's role of AI in fostering innovative environments. Furthermore, organizational creativity positively influences organizational performance, validating its critical role in enhancing firm outcome. Importantly, this study also establishes a significant indirect effect of AI capability on performance through organizational creativity, highlighting the mediating role of creativity in translating AI investments into improved organizational outcomes. The findings highlight the strategic imperative for organizations to invest in AI technologies and foster a supportive environment for creativity.