THE IMPACT OF DIGITALIZATION AND ARTIFICIAL INTELLIGENCE ON FIRMS’ ECONOMIC EFFICIENCY: THE MEDIATING ROLE OF DIGITAL INNOVATION

Abstract

Purpose. This study investigates the impact of digitalization and artificial intelligence (AI) adoption on firms’ economic efficiency. In particular, the research examines the role of digital capabilities and attitudes toward AI in stimulating digital innovation and improving organizational economic outcomes.

Design/methodology/approach. Data were collected through a structured questionnaire administered to employees working in organizations undergoing digital transformation, yielding 258 valid responses.

Findings. The empirical analysis was conducted using SmartPLS 4.0 and the partial least squares structural equation modeling (PLS-SEM) technique. The results demonstrate that digital capabilities and favorable attitudes toward AI significantly contribute to the development of digital innovation, which in turn has a positive effect on economic efficiency. The findings confirm the proposed research model and underline the importance of effectively leveraging digital technologies and AI-based solutions to enhance organizational performance.

Originality. This study contributes to the literature review on digital transformation by providing empirical evidence from an emerging economy context. From a practical perspective, the results offer valuable insights for managers and decision-makers seeking to improve economic efficiency through the strategic implementation of digital and AI-driven innovations.

Key words: Economic Efficiency, Digital Capabilities, Digital Innovation, AI Attitudes.