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Artificial intelligence (AI) is an essential driver of the digital era and is the transformative driver of innovation and business performance. The present study investigates the roles of AI-driven decision-making, AI-enabled customer interactions, AI-integrated operations, and business performance metrics concerning innovation capability as a mediator from the dynamic capabilities theory (DCT) perspective. Also, the study sample consisted of 213 employees from the banking and financial services sector in Bahrain, using partial least squares structural equation modeling (PLS-SEM). Findings confirm that AI-driven innovations significantly enhance business performance, with innovation capability strengthening these relationships. The study offers managers, policymakers, and researchers strategic insights on maximizing AI’s potential for sustainable business excellence.

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AI-Driven Innovations and Business Performance Metrics with the Mediating Role of Innovation Capability in the Digital Era

  • 会议论文

  • 发表日期：

    2026年

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  • Jayendira P. Sankar

摘要

Artificial intelligence (AI) is an essential driver of the digital era and is the transformative driver of innovation and business performance. The present study investigates the roles of AI-driven decision-making, AI-enabled customer interactions, AI-integrated operations, and business performance metrics concerning innovation capability as a mediator from the dynamic capabilities theory (DCT) perspective. Also, the study sample consisted of 213 employees from the banking and financial services sector in Bahrain, using partial least squares structural equation modeling (PLS-SEM). Findings confirm that AI-driven innovations significantly enhance business performance, with innovation capability strengthening these relationships. The study offers managers, policymakers, and researchers strategic insights on maximizing AI’s potential for sustainable business excellence.