It is demonstrated that innovation efficiency emerges through a sequential organizational transformation process rather than directly from AI Leadership, and through a multistage transformation process involving capability development and workforce adaptation.
Abstract
Artificial intelligence is increasingly transforming organizational decision-making, yet the mechanisms through which AI Leadership contributes to innovation outcomes remain insufficiently understood. Drawing on dynamic capabilities theory, this study examines the relationships among AI Leadership, Digital Capability Development, Human Capital Transformation, and Innovation Efficiency. Data were collected through a cross-sectional online survey administered via the Prolific academic research platform with an international sample of 3416 employees. Exploratory factor analysis, confirmatory factor analysis, and structural equation modeling were then employed using a split-sample validation approach. The results indicate that AI Leadership positively influences Digital Capability Development, while Digital Capability Development positively affects both Human Capital Transformation and Innovation Efficiency. Contrary to expectations, AI Leadership demonstrates a significant negative direct effect on Human Capital Transformation. Mediation analysis reveals that Human Capital Transformation partially mediates the relationship between Digital Capability Development and Innovation Efficiency, whereas Digital Capability Development and Human Capital Transformation jointly provide a significant sequential mediation pathway linking AI Leadership and Innovation Efficiency. The findings suggest that innovation efficiency does not emerge directly from AI Leadership but through a multistage transformation process involving capability development and workforce adaptation. The study contributes to digital transformation and innovation research by demonstrating that innovation efficiency emerges through a sequential organizational transformation process rather than directly from AI Leadership.
Artificial intelligence is increasingly reshaping leadership practices and organizational decision-making, yet its implications for innovation outcomes remain insufficiently understood. Existing research largely assumes that AI-driven leadership enhances innovation while paying limited attention to its effects on the human capabilities required to sustain innovation quality. This study examines whether AI-driven leadership creates an innovation paradox in which increased innovation activity is accompanied by declining innovation quality. Cross-sectional self-reported data were collected from 2990 employees working in digitally intensive organizational environments. A split-sample EFA–CFA validation procedure was applied, and the proposed framework was tested using structural equation modeling. AI-Driven Leadership was positively associated with Innovation Activity and Human Capital Erosion. Human Capital Erosion was negatively associated with Innovation Quality, while Innovation Activity was also negatively associated with Innovation Quality. Mediation analysis indicated a substantial indirect association between AI-Driven Leadership and Innovation Quality through Human Capital Erosion. Organizational Learning Erosion did not significantly influence Innovation Quality and did not mediate the proposed relationships. The findings suggest an innovation paradox whereby AI-driven leadership is associated with higher innovation activity while simultaneously being associated with greater human capital erosion, potentially reducing innovation quality. Accordingly, preserving human capital may be important for sustaining innovation quality in AI-enabled organizations.
Vuk Mirčetić, Zoran Pavlović, Aleksandar Ignjatović Pertini et al.· World· 0 citations
It is shown that sustainable organizational performance can be achieved when digital leadership is effectively translated into agile employee behavior, and empirical evidence that sustainable organizational performance can be achieved when digital leadership is effectively translated into agile employee behavior is provided.
Syarifuddin Syarifuddin, M. L. Siraj, Fahrian Arsyam Gultom et al.· Economics & business journal...· 0 citations
Artificial Intelligence (AI) is increasingly reshaping higher education institutions, yet limited evidence exists regarding how AI Technology Adoption contributes to Sustainable Performance. This study examines the relationships among AI Technology Adoption, Transformational Leadership, Innovation Capability, and Sustainable Performance in higher education institutions. Drawing on the Technology-Organization-Environment (TOE) framework, Transformational Leadership Theory, Dynamic Capability Theory, and the Triple Bottom Line (TBL) perspective, a research model was tested using survey data collected from 500 academic and administrative staff across higher education institutions in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in China. Structural Equation Modelling (SEM) was employed to examine the proposed relationships. The findings reveal that AI Technology Adoption and Transformational Leadership exert positive effects on Sustainable Performance, both directly and indirectly through Innovation Capability. Innovation Capability was also found to partially mediate the relationships between AI Technology Adoption, Transformational Leadership, and Sustainable Performance. By positioning Sustainable Performance as a key institutional outcome, this study extends existing research on AI in higher education beyond technology implementation and demonstrates the role of Innovation Capability in translating technological and leadership resources into Sustainable Performance.
Yani Liao, Khunanan Sukpasjaroen· Higher Education Studies· 0 citations
The results reveal that the use of AI significantly enhances decision quality and promotes transformational leadership among SME leaders, highlighting the strategic and ethical importance of AI adoption in fostering effective and adaptive leadership within Tunisian SMEs.
Sana Ouechtati· Leadership & Organizatio...· 0 citations
It is suggested that transformational leaders create supportive environments that encourage faculty members to adopt AI technologies, thereby improving innovative teaching, research, and academic practices.
Ijaz Hussain, Fakhar Abbas, Muhammad Abubakar Zeeshan et al.· TAMSAAL· 0 citations
This study develops an integrative model of employee productivity by examining the roles of digital capability, leadership, and operational excellence in the context of digital transformation within Indonesia’s food and beverage manufacturing industry. Although previous studies have investigated these constructs separately, limited research has integrated them into a comprehensive structural framework. A quantitative explanatory design was employed using survey data collected from 200 employees of PT Ultrajaya Milk Industry & Trading Company Tbk. The proposed relationships were analyzed using Structural Equation Modeling (SEM). The findings reveal that digital capability is the strongest determinant of employee productivity, followed by leadership, while operational excellence significantly enhances productivity and partially mediates the effects of both digital capability and leadership. The results indicate that organizations can achieve sustainable productivity by simultaneously strengthening employees’ digital competencies, developing transformational leadership, and fostering operational excellence. The study contributes to the Resource-Based View and Human Capital Theory by demonstrating that technological capability, leadership quality, and organizational processes function as complementary strategic resources for improving workforce productivity. Practically, the findings provide managerial guidance for designing integrated digital transformation and human capital development strategies to enhance organizational competitiveness.
Lia Agustianti Ghemy, Aris Setiyani, Ir J. G. W. Ignatius et al.· Siber Journal of Advanced M...· 0 citations
