Human capital strategy in AI-enabled organizations: Culturally embedded emotional intelligence, human-centered leadership, and innovative work behavior

Abstract

The study aims to investigate the role of culturally embedded emotional intelligence (EI) as a strategic human capital asset in facilitating innovative work behavior (IWB) in artificial intelligence (AI)-enabled organizations. The study proposes a relational-digital framework in which Indonesian emotional intelligence (IEI) impacts IWB through human-centered leadership (HCL), facilitated by AI utilization as structural digital infrastructure (Mayyora & Sumartik, 2024). The study used survey data collected from Indonesian organizations and applied structural equation modeling to examine relationships among culturally embedded EI, HCL, AI utilization, and IWB. The study found that IEI is a strong predictor of HCL, which, in turn, significantly impacts IWB, thus supporting the full relational mediation hypothesis. The study found that AI utilization was a direct predictor of IWB, but did not moderate the leadership-innovation relationship. The study found that relational legitimacy and psychological safety were more significant than technological intensity in facilitating innovation behavior in collectivist organizational contexts. The study extends existing knowledge of EI as culturally embedded strategic human capital, proposing that HCL is an aspect of relational infrastructure that facilitates innovation. The study offers a collectivist perspective on digital transformation, in which relational capabilities are primary drivers of innovation in AI-enabled organizations.