Current Perspective on Business Operations
Current Perspective on Business Operations is led by Prof. Dr. M. Elfan Kaukab as the Editor-in-Chief. It has an online ISSN 3125-1323. This journal is published six times a year. The journal’s citedness can be found in Google Scholar and Dimensions.
Exploring Human Resource Contributions to Bank Performance in Vietnam
This study investigates the role of human resources in enhancing bank performance in the digital era and examines whether technology strengthens the contribution of human capital within a developing economy. As automation and digital transformation continue to reshape banking operations, leading to reductions in branch networks and workforce size, concerns have emerged regarding the continuing importance of human resources in driving organizational performance. The study utilizes panel data from 22 Vietnamese commercial banks over the period 2011–2023, drawing information from audited annual reports, the General Statistics Office of Vietnam, and the World Bank. The analysis employs the Feasible Generalized Least Squares (FGLS) method and incorporates several human resource indicators. The findings demonstrate that human resources remain a significant determinant of bank performance despite increasing levels of digitalization. Results from both the baseline and extended models reveal a positive and statistically significant relationship between human resource factors and bank performance. However, the interaction between human resources and technological advancement does not generate a synergistic effect that further improves performance in highly digitalized banks. A key limitation of this study is the use of the ICT Index as a proxy for technological development, which may not fully capture the complexity of automation and digital transformation. Nevertheless, the study provides empirical evidence that human resources continue to play a vital role in the banking sector even as technological solutions become more prevalent. These findings offer important implications , bank managers, and other stakeholders seeking to balance technological investment with human capital development.
Copyright (c) 2026 Romandhon https://creativecommons.org/licenses/by-nc/4.0
Operational Efficiency, Service Quality, and Firm Performance: A Strategic Orientation Perspective
This study investigates the interaction between operational efficiency (OE) and service quality (SQ) in shaping firm profitability, while considering the moderating role of strategic orientation (SO), specifically focused and non-focused strategies. Drawing on the perspectives of competitive priorities and contingency theory, this research proposes that the effectiveness of balancing efficiency and quality depends on a firm's strategic positioning. Using panel data from the U.S. airline industry, the study applies econometric techniques and a series of robustness tests, including alternative model specifications, to ensure the validity and reliability of the findings. The results indicate that different dimensions of operational efficiency interact with service quality in distinct ways when influencing profitability. Although the interaction effects between operational efficiency and service quality are generally negative and consistent with theoretical expectations, they are not statistically significant, suggesting the presence of contextual factors that may shape these relationships. Furthermore, strategic orientation is found to play a significant moderating role in the relationship between operational efficiency, service quality, and profitability. In particular, strategic orientation strengthens the interaction between labor productivity and service quality, implying that firms can achieve superior performance when efficiency and quality initiatives are aligned with their strategic priorities. This study contributes to the operations and strategic management literature by reconciling inconsistent findings regarding the efficiency–quality–performance nexus and demonstrating the importance of strategic orientation as a contingency factor. The findings provide a more comprehensive understanding of how firms can balance operational efficiency and service quality to enhance profitability under different strategic contexts.
Copyright (c) 2026 Ali Imron , Muhamad Agung Dharmajaya https://creativecommons.org/licenses/by-nc/4.0
Technology, Innovation, and Gender Diversity: Determinants of Performance in South American Manufacturing Firms
This study investigates the relationships between technological strategies, technological innovation, women managers, and firm performance in South American manufacturing firms. Using a dataset comprising 1,712 manufacturing firms from seven South American countries in 2017, the study employs Ordinary Least Squares (OLS) regression analysis to test the proposed hypotheses. The findings reveal that both internal research and development (R&D) activities and technology licensing are positively associated with firm performance, highlighting the importance of combining internal and external knowledge sources to enhance competitiveness. Regarding innovation outcomes, product innovation demonstrates a positive relationship with profitability, whereas process innovation does not exhibit a significant direct association with firm performance. The results further indicate that firms with a higher presence of women in middle management positions tend to achieve superior performance outcomes, while the presence of female top managers does not show a significant positive effect. These findings suggest that balanced innovation strategies and inclusive managerial structures play an important role in improving organizational performance in emerging economies. The study contributes to the strategic management and innovation literature by providing evidence on the complementary effects of technological strategies, distinguishing the performance implications of product and process innovation, and offering new insights into how gender diversity at different managerial levels is associated with firm performance in South American manufacturing firms.
Copyright (c) 2026 Rhis Ogie Dewandaru, Alfato Yusnar Kharismasyah https://creativecommons.org/licenses/by-nc/4.0
Transforming Knowledge into Innovation: The Critical Role of TQM in Certified Family-Owned SMEs
This study examines the influence of Knowledge Management (KM) on innovation, encompassing both product innovation and process innovation, through the mediating role of Total Quality Management (TQM). Data were collected from 130 certified family-owned SMEs and analyzed using Structural Equation Modeling (SEM) to evaluate the proposed conceptual framework. The findings indicate that KM has a significant positive effect on TQM, while TQM positively influences both product and process innovation. However, the direct relationship between KM and innovation was found to be insignificant. In contrast, KM exerts a significant indirect effect on both product and process innovation through TQM, demonstrating that TQM fully mediates the relationship between KM and innovation. These results suggest that knowledge management practices alone are insufficient to generate innovative outcomes unless they are supported by a structured quality management system that facilitates the effective transformation of knowledge into innovation. Although the study provides valuable insights into the interaction among KM, TQM, and innovation, its generalizability is limited because the sample consists solely of family-owned SMEs. Future research is therefore encouraged to examine this framework across broader industrial and service-sector contexts. From a practical perspective, the findings highlight the importance of integrating KM initiatives with TQM practices to enhance organizational innovation capabilities. This study also contributes to the literature by demonstrating that the impact of KM on innovation is not direct but is fully transmitted through Total Quality Management, challenging the conventional assumption that KM independently drives innovation performance.
Copyright (c) 2026 Ilham Nuryana Fatchan, Meydy Fauziridwan https://creativecommons.org/licenses/by-nc/4.0
Enhancing Supply Chain Risk Management Capabilities Through Product and Process Innovation
This study examines the influence of supply chain innovation practices, specifically product innovation and process innovation, on supply chain risk management (SCRM) capabilities and performance. Grounded in Dynamic Capabilities Theory, the research argues that innovation enables firms to identify risks, capitalize on emerging opportunities, and reconfigure resources effectively in uncertain business environments. Using a quantitative explanatory approach, data were collected from 276 professionals working in export-oriented manufacturing firms in Pakistan and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that both product and process innovation significantly strengthen supply chain resilience and robustness. Furthermore, resilience has a significant positive impact on SCRM performance, whereas robustness does not show a statistically significant effect. These results highlight the importance of integrating innovation into supply chain activities to enhance risk management capabilities, improve responsiveness to disruptions, and support faster recovery in dynamic and challenging environments. The study contributes to the supply chain management literature by providing empirical evidence on the role of innovation in developing effective SCRM capabilities and improving organizational performance.
Copyright (c) 2026 Ali Akbar Anggara, Sulistyandari https://creativecommons.org/licenses/by-nc/4.0
Digital Transformation and Corporate Tax Avoidance: Evidence from China
During periods of economic uncertainty, firms frequently engage in tax avoidance strategies to reduce financial burdens and enhance profitability. While such practices may provide short-term benefits for individual firms, they can adversely affect government tax revenues and weaken overall economic stability. Against the backdrop of China’s ongoing digital transformation agenda, this study investigates whether corporate digitalization can serve as an effective mechanism for reducing tax avoidance while supporting a more balanced relationship between fiscal sustainability and corporate performance. Using panel data from Chinese listed companies over the period 2012–2022, the findings indicate that digital transformation significantly suppresses tax avoidance behavior and contributes to a healthier tax environment. Further analysis reveals that downside risk, managerial emotional tone, and political cost function as important mediating mechanisms. Specifically, digital transformation discourages tax avoidance by lowering downside risk and reducing political costs; however, it may simultaneously strengthen managerial optimism, which can encourage more aggressive tax-planning behavior. The results also demonstrate that the restraining effect of digital transformation is evident across different types of firms, with stronger impacts observed among small and medium-sized enterprises and non-state-owned firms. Overall, this study provides important policy implications for governments seeking to improve tax governance in the digital era and extends the literature on the relationship between digital transformation and corporate tax behavior.
Copyright (c) 2026 Gina Pertiwi Khoerunnisa https://creativecommons.org/licenses/by-nc/4.0
Data-Driven Supply Chains and Sustainability in Agri-Food Processing
Data-driven supply chain management capability (DDSCMC) has become an essential organizational capability for enhancing supply chain effectiveness through improved data utilization, analytics, and decision support. Despite its growing importance, limited research has examined the mechanisms through which DDSCMC contributes to sustainable supply chain performance (SSCP) within agro-processing firms. Drawing upon Organizational Information Processing Theory (OIPT), this study investigates the relationship between DDSCMC and SSCP while examining the mediating role of supply chain transparency (SCT) and the moderating role of circular economy thinking (CET). Data were collected from 249 agro-processing firms in China and analyzed using structural equation modeling (SEM). The results reveal that DDSCMC positively influences both supply chain transparency and sustainable supply chain performance. Furthermore, supply chain transparency serves as a significant mediating mechanism through which DDSCMC enhances sustainability outcomes. The findings also demonstrate that circular economy thinking strengthens the positive effect of DDSCMC on transparency and amplifies its indirect contribution to sustainable supply chain performance. This study extends the application of Organizational Information Processing Theory by illustrating how data-driven supply chain capabilities promote sustainability through enhanced transparency and circular economy-oriented decision-making. The findings also provide practical guidance for agro-processing firms seeking to improve sustainability performance by strategically integrating data-driven management capabilities, transparency practices, and circular economy principles into their supply chain operations.
Copyright (c) 2026 Irawan Randikaparsa https://creativecommons.org/licenses/by-nc/4.0
Integrating Industry 4.0 Technologies for Lean an Agile Supply Chain Performance
Industry 4.0 (I4.0) technologies have opened new possibilities for improving supply chain management, but the way these tools are integrated into existing models to strengthen performance is still being explored. This study focuses on understanding how I4.0 base technologies cloud computing, the Internet of Things, and big data analytics relate to lean and agile supply chain strategies, and how they affect the operational performance of firms. These technologies are particularly important because of their ability to enhance data collection, storage, sharing, and analysis, which are key elements in modern supply chain processes. Using the Dynamic Capabilities Theory as a framework, the study applied structural equation modeling (SEM) to data collected from 256 Spanish manufacturing companies. The results show that I4.0 base technologies do not influence lean and agile supply chains in the same way. They significantly contribute to making supply chains leaner, but do not have a direct effect on agile implementation. In addition, findings highlight a connection between lean and agile strategies, where agile practices mediate the link between lean approaches and firm performance. These insights provide practical guidance for firms aiming to use I4.0 technologies to strengthen competitiveness
Copyright (c) 2026 Risa Nur Aidah https://creativecommons.org/licenses/by-nc/4.0
Tracing Digital Transformation Through Failure Mi-cro-Foundations in High-Reliability Organizations
For over thirty years, scholars have examined the operational complexity and resilience of high-reliability organizations (HROs). In recent years, however, these organizations have encountered mounting market pressures that demand digital transformation (DT), reshaping both their organizational identity and value creation approaches, while still upholding stringent standards of reliability and safety. This research presents a longitudinal, qualitative single-case study of a leading European utility provider to explore how HRO identity interacts with digital transformation. The study highlights the inherent tensions between the pursuit of innovation and change, and the ongoing necessity of stable, dependable operations. Findings reveal that clashes between established HRO identity and the core demands of DT generate perceived threats within the IT workforce, prompting defensive behaviors that risk undermining the transformation journey. From this, we propose a process model that illustrates how identity misalignment emerges and influences outcomes during large-scale DT initiatives in HROs. By focusing on these dynamics, the study contributes to DT literature by emphasizing the role of bottom-up organizational processes in shaping success or failure, particularly through the IT function’s interpretation of identity.
Copyright (c) 2026 M. Elfan Kaukab https://creativecommons.org/licenses/by-nc/4.0
Fundamental Elements of Corporate Purpose: Managing Performance in Changing Environments
This article examines the micro-foundations of corporate purpose, which is defined as the lasting rationale for a corporations existence in connection to society. Despite the widespread recognition of corporate purpose, its practical application by managers at the operational level continues to offer challenges, particularly in dynamic contexts. Utilizing a field study of a prominent Italian food industry group and relevant literature on the micro foundations of institutions, we investigate the function of a performance management system in facilitating corporate purpose within particular managerial contexts as the organization adapts to external environmental pressures. We illustrate that managers can employ the PMS as a suite of tools and techniques to integrate corporate purpose at the micro-level into actions, decisions, and concrete artifacts that collectively constitute a social context. In this context, the PMS allows managers to recognize chances to implement different aspects of corporate purpose through interactions, consistently refining its significance while ensuring coherence with overarching global development goals
Copyright (c) 2025 Gunarso Wiwoho, Susanti https://creativecommons.org/licenses/by-nc/4.0
An analysis of the literature on lean supply chain management in relation to I4.0
The integration of Lean Supply Chain Management (LSCM) and Industry 4.0 (I4.0) technologies, although recent, has garnered significant interest. Due to its recent emergence as a field of practice and research, along with the rapid proliferation of works in this domain, it is essential to regularly update the viewpoints on this area of inquiry. This study seeks to examine the integration of LSCM and I4.0 by examining their relationships at operational, tactical, and strategic levels. Design, methodology, and approach A systematic literature review was performed to discover and elucidate the integration of LSCM and I4.0 from scholarly sources published prior to March 2021. The research of the literature indicated that the integration of LSCM and I4.0 exists at various managerial levels. Furthermore, when the integration is examined across several management tiers, it becomes evident that LSCM facilitates the implementation of I4.0 at a strategic level, whilst I4.0 technologies are poised to improve LSCM practices at the operational level. The primary contribution of this study is the framework demonstrating that LSCM facilitates the strategic adoption of I4.0, while I4.0 technologies are expected to improve LSCM practices at the operational level.This study presents a novel perspective on the works published within the themes of LSCM and I4.0. Furthermore, it presents an analytical framework for utilisation by other researchers. Ultimately, it presents the latest applications of LSCM and I4.0, highlighting current trends, advancements, and significant deficiencies.
Copyright (c) 2025 Harini Abrilia Setyawati , Irfan Helmy https://creativecommons.org/licenses/by-nc/4.0
Improved Supply Chain Optimization Through The Implementation Of Artificial Intelligence
This study presents a thorough examination of the incorporation of Artificial Intelligence (AI) within Supply Chain Management (SCM), emphasizing its effects on operational efficiency, strategic innovation, and sustainability. This research utilizes a systematic literature review and content analysis methodology to synthesize findings from peer-reviewed articles and conference papers published from 2013 to 2023. This study identifies significant advancements in AI technologies, including machine learning, natural language processing, and robotics, along with their applications in supply chain processes such as demand forecasting, inventory management, and logistics optimization. Findings indicate that AI markedly improves supply chain efficiency through enhanced decision-making, cost reduction, and optimized resource allocation. Challenges including data privacy concerns, ethical considerations, and the necessity for skilled personnel are critical factors affecting AI adoption in supply chain management. The future of AI-enhanced supply chains appears optimistic, with opportunities for innovation and resilience, though it depends on overcoming current challenges. The study presents strategic recommendations for practitioners and policymakers, highlighting the necessity of cultivating a culture of innovation, enhancing digital competencies, and establishing supportive regulatory frameworks for AI integration. Future research should focus on the long-term effects of AI on supply chain sustainability, the ethical considerations surrounding autonomous systems, and the interactions between AI and emerging technologies. This study advances the scholarly discussion on artificial intelligence in supply chain management, providing insights for the improvement of supply chain operations in the digital era.
Copyright (c) 2025 Arya Samudra Mahardhika, Sulis Riptiono https://creativecommons.org/licenses/by-nc/4.0
An Empirical Study on the Importance of Digital Transformation (5.0) in Improving the Supply Chain
Digital transformation in supply chain optimization has received significant attention in recent years because of its critical importance. This study aims to provide empirical evidence and insights regarding the benefits and challenges associated with digital transformation in supply chain management. This research examines the impact of digital transformation on supply chain optimization through a hybrid methodology. It incorporates a detailed literature review, the development of a theoretical framework, and empirical findings derived from multiple case studies based on established selection criteria. The case analyses underscore essential components that facilitate successful digital transformations, such as real-time data analytics, collaboration, blockchain technology, digital twin technology, augmented and virtual reality, and collaborative robots. The findings of this study provide insights that are valuable for professionals across various industrial sectors and businesses undertaking similar digital transformation initiatives. This empirical study regarding the implications of Digital Transformation 5.0 on supply chain management contributes novel insights to the existing literature. Further research is essential to validate the findings, extend their applicability to a broader spectrum of enterprises, and explore various dimensions of digital transformation in supply chain optimization.
Copyright (c) 2025 Suliyanto, Weni Novandari https://creativecommons.org/licenses/by-nc/4.0
Leveraging Innovation for SME Growth in Anambra State
The lack of innovation practices among SMEs in Anambra State prompted this study. This study investigates the impact of innovation practices on the performance of Small and Medium Scale Enterprises in various sectors within Anambra State.The study employed a cross-sectional research design. The study population comprised 15 selected SMEs from various sectors, totaling 1,860 management and workers from these SMEs in Anambra State. A sample size of 300 was calculated utilizing the formula established by Krejcie and Morgan (1970). This study utilized a primary data source, specifically a questionnaire, which underwent assessments for both validity and reliability. Descriptive and inferential statistics were utilized in data analysis, with hypotheses tested at a 5% significance level.The analysis indicated that product innovation is positively correlated with customer satisfaction (r = .847; P-value < 0.05) and that process innovation is positively correlated with customer retention (r = .813; P-value < 0.05). Technological innovation significantly influences competitive advantage (r = .769; P-value < 0.05), while marketing innovation significantly affects brand awareness (r = .790; P-value < 0.05). The study concluded that there is a significant relationship between innovation practices and the performance of SMEs.
Copyright (c) 2025 Refius Pradipta Setyanto, Agus Suroso https://creativecommons.org/licenses/by-nc/4.0
Digitalization of governmental organizations: an empirical analysis of strategic aspects concerning human resources
The worldwide transition to the digitalization of governmental entities signifies an increasing dependence of individuals on technology. This study examines the influence of strategic resources such as data literacy, collaborative skills, and digital trust within government human resources on digital culture, preparedness, and comprehensive digitalization. Despite extensive research on digitization inside governmental entities, little focus has been directed towards the influence of human resource strategic variables in cultivating digital culture and preparedness. The analysis of data from 257 government employees utilizing seM-Pls underscores the significant influence of data literacy and digital trust on the formation of corporate digital culture. Furthermore, it determines that digital culture and preparedness substantially influence digitalization initiatives. These findings not only augment our comprehension of digitalization within government but also corroborate established technology adoption theories. The report provides a pragmatic methodology for assessing digitalization performance, assisting policymakers and leaders in managing the intricacies of digital transformation. It emphasizes the significance of investing in human capital and cultivating a conducive digital environment. Ultimately, these initiatives are essential for governments to efficiently leverage digital technology, enhance service delivery, and meet the changing requirements of residents in a progressively digital landscape.
Copyright (c) 2025 Siti Zulaikha Wulandari, Wiwiek Rabiatul Adawiyah https://creativecommons.org/licenses/by-nc/4.0
Integrating machine learning and blockchain applications in business operations and supply chain management
This research investigates how combining blockchain technology with machine learning (ML) can enhance transparency, efficiency, and resilience in supply chain management. Using a mixed-methods approach, the study designed a blockchain framework and evaluated several ML models including LSTM, ARIMA, Isolation Forest, One-Class SVM, Q-Learning, and Deep Q-Networks for tasks such as demand forecasting, anomaly detection, and optimization. Results indicate that blockchain improves data integrity, traceability, and real-time visibility, especially in sectors like food and pharmaceuticals. Among the tested models, LSTM outperformed others in dynamic demand forecasting, Isolation Forest proved most effective for real-time anomaly detection, and Deep Q-Networks excelled in complex optimization challenges despite high computational requirements, while Q-Learning worked well for simpler optimization needs. The integrated blockchain and ML framework shows strong potential for boosting supply chain resilience by enabling secure, agile operations across various industries. However, challenges remain blockchain faces scalability limitations, and advanced ML models demand significant computational power. These constraints highlight opportunities for future research to develop more scalable blockchain solutions and computationally efficient ML techniques.
Copyright (c) 2025 Bagus Anggoro Richie, Yudhistira Pradhipta Aryoko https://creativecommons.org/licenses/by-nc/4.0
Business process and regional economic development under OBOR initiative using unified social credit code data
The Belt &Road strategy is a national initiative for China to seek international economic cooperation, promote domestic business process optimization and regional economic development. This paper uses the beforehand registration data of economic behavior to analyze the status quo of economic development and business process of the domestic cites of the Belt &Road from a new economic research approach, and finds that the economic growth of cities along the Belt & Road has been stable, and the development trend and business process of five economic regions are different: finance and new information service industry are outstanding in Yangzi River Delta and the middle and upper reaches of the Yangtze River and Zhu River Delta; economical scale of communication and transportation industry in Circum-Bohai Sea Economic Zone is bigger, and the high-tech industry has its own special characteristic in the economic zone on the west side of Taiwan Straits.
Copyright (c) 2025 Yang Xiudan https://creativecommons.org/licenses/by-nc/4.0
The collaborative sharing development of regional cultural and creative industries: evidence from China
Regional integration and coordinated development are an effective support for the improvement of regional competitiveness, while the construction of a regional community of cultural and creative industries can well promote the economic interflow and benefit sharing among different cities or regions. In this paper, based on the industrial association theory and industrial cluster theory, it explains the connotation of the collaborative sharing development of regional culture creative industry, then makes further study on two main operating mechanisms—the industrial integration mechanism and the industry chain feedback coupling mechanism—in the coordinated sharing development of regional culture creative industry, and finally gives some suggestions through a typical comparison across different regions in China. Using the Cultural Industry Development Index to evaluate the typical regions, the productivity index, influence power index and driving force index in three sub-indexes measure different development strength, development performance and government promotion efficiency in regional cultural industries. It is showed that the eastern areas kept an overall strong, stable and mature development and other areas with differentiated development were more obvious; while the overall situation of cultural consumption in the eastern region is better than that in the central and western regions. In addition, Sichuan and Inner Mongolia in the western regions entered the national top 10 for the first time. The development of Yangtze River Delta and Pearl River Delta is similar, but the development of Beijing-Tianjin-Hebei Region is different. On the level of regional comprehensive and coordinated development, the Yangtze River Delta urban agglomeration is the best, and its comprehensive development index of economy, society and environment is better than the Pearl River Delta and Beijing-Tianjin-Hebei urban agglomeration.
regional cultural and creative industries
industrial chain feedback coupling mechanism
Copyright (c) 2025 Li Jiao, Wang Zhixin https://creativecommons.org/licenses/by-nc/4.0
How advanced analytics optimizes the efficiency and productivity of business process
This paper explores how advanced analytics can enhance business process performance by examining key techniques, implementation pathways, benefits, and potential obstacles. Advanced analytics encompasses data mining, machine learning, and both predictive and prescriptive approaches. It is increasingly embedded in organizational workflows to improve efficiency, productivity, and competitiveness. The discussion covers methods such as process mining, predictive modeling, prescriptive optimization, automation, and artificial intelligence, alongside strategic enablers including planning, change management, infrastructure readiness, workforce training, and continuous performance tracking. The study outlines tangible advantages, from operational streamlining and productivity gains to more informed decision-making, supported by cross-industry case illustrations. At the same time, it acknowledges persistent challenges such as data privacy risks, integration complexities, and resistance to organizational change. Finally, it recommends future research into emerging AI-driven technologies, enhanced safeguards for data governance, and the cultivation of a strong culture of evidence-based decision-making.
Copyright (c) 2025 Alfalisyado https://creativecommons.org/licenses/by-nc/4.0
Business process transformation to maintain high performance: Driving an AI-based business value project
This study investigates the impact of Artificial Intelligence (AI) on firm performance, emphasizing the business value generated by AI-enabled transformation projects. Employing a four-step sequential approach, including (1) analysis of AI concepts and technologies, (2) in-depth review of cross-sector case studies, (3) data collection from AI solution providers’ databases, and (4) literature review. This research draws on the theory of IT capabilities to examine AI’s influence at organizational and process levels. The analysis is based on 500 case studies from sources including IBM, AWS, Cloudera, Nvidia, Conversica, and Universal Robots. Findings reveal that AI, encompassing technologies such as machine translation, chatbots, and self-learning algorithms, enhances business performance by optimizing processes, automating operations, improving information flows, and enabling predictive and interactive capabilities. However, performance gains are realized only when organizations leverage AI features to reconfigure and innovate their processes. AI adoption thus emerges not merely as a technological upgrade but as a driver of strategic transformation and competitive advantage. The study offers both theoretical and managerial contributions. Theoretically, it proposes a model for assessing AI’s business value, addressing gaps in the literature. Managerially, it guides decision-makers in aligning data, talent, domain expertise, partnerships, and scalable infrastructure to maximize AI benefits. By viewing AI as an integrated set of IT configurations rather than a standalone tool, organizations can achieve higher performance, enhance investment returns, and strengthen competitive positioning. These insights position AI as a critical enabler for new business models and sustainable organizational growth.
Copyright (c) 2025 M. Elfan Kaukab, Ali Akbar Anggara, Ali Imron https://creativecommons.org/licenses/by-nc/4.0