Artificial Intelligence (AI) Capabilities and the R&D Performance of Organizations: The Moderating Role of Environmental Dynamism

The potential of artificial intelligence capabilities (AICs) extends beyond fostering both explorative and exploitative innovations (EXO and EXI); it may also enhance the overall performance of organizations. Despite this, the interplay between AIC and research and development performance (RDP) remains unexplored. In this article, we aim to fill this gap by investigating the influence of AIC on RDP, considering both EXO and EXI. Additionally, the study examines the potential moderating role of environmental dynamism in shaping the relationship between AIC and the two types of innovations, ultimately impacting the enhancement of RDP in organizations. To achieve this, a conceptual model was developed based on the existing literature and subsequently validated using the partial least square structural equation modeling. The research gathered 289 responses from a diverse group of industry professionals. The findings of this study contribute both theoretically and practically by shedding light on the pivotal role played by artificial intelligence (AI) capabilities, exploration, and EXI in improving the research and development (R&D) performance of organizations. Understanding these dynamics will provide valuable insights for organizations seeking to leverage AI for strategic advancement in their R&D endeavors.