The Influence of Artificial Intelligence (AI) Capability on Organizational Performance Mediated by Process Automation, Cognitive Insight, Cognitive Engagement and Organizational Creativity: Study of Startup Companies in Solo Raya
Abstract
Grounded in Resource-Based Theory (RBT), this study investigates the influence of artificial intelligence capabilities on organizational performance, with automation processes, cognitive insights, cognitive engagement, and organizational creativity acting as mediating mechanisms. This study uses a survey method. The research population is employees in each division of artificial intelligence (AI) users at start-up companies in Solo Raya. Purposive sampling was employed, yielding 250 returned questionnaires. The data were examined using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that: (1) artificial intelligence capabilities do not have a statistically significant direct impact on organizational performance; and (2) artificial intelligence capabilities exert a significant positive influence on process automation; (3) process automation does not significantly influence organizational performance; (4) process automation does not serve as a mediating mechanism in the relationship between artificial intelligence capabilities and organizational performance; (5) artificial intelligence capabilities have a significant effect on cognitive insights; (6) cognitive insights do not exert a significant influence on organizational performance; (7) cognitive insights do not mediate the relationship between artificial intelligence capabilities and organizational performance; and (8) artificial intelligence capabilities significantly influence cognitive engagement; (9) cognitive engagement does not significantly influence organizational performance; (10) cognitive engagement does not mediate the relationship between artificial intelligence capabilities and organizational performance; (11) artificial intelligence capabilities exert a significant influence on organizational creativity; (12) organizational creativity has a significant positive impact on organizational performance; and (13) organizational creativity serves as a mediating mechanism in the relationship between artificial intelligence capabilities and organizational performance.
References
Akter, S., Hossain, M. A., Sajib, S., Sultana, S., Rahman, M., Vrontis, D., & McCarthy, G. 2023. A framework for AI-powered service innovation capability: Review and agenda for future research. Technovation, 125(December 2021), 102768.
Ali Mohamad, T., Bastone, A., Bernhard, F., & Schiavone, F. 2023. How artificial intelligence impacts the competitive position of healthcare organizations. Journal of Organizational Change Management, 36(8), 49–70. https://doi.org/10.1108/JOCM-03- 2023-0057
Annosi, M. C., Capo, F., Appio, F. P., & Bedetti, I. 2023. Unveiling micro-foundations of digital transformation: Cognitive models, routines, and organizational structures in agri-food SMEs. Technological Forecasting and Social Change, 197(May), 122922. https://doi.org/10.1016/j.techfore.2023.122922
Beck, A. T., Baruch, E., Balter, J. M., Steer, R. A., & Warman, D. M. 2004. A new instrument for measuring insight: The Beck Cognitive Insight Scale. Schizophrenia Research, 68(2–3), 319–329. https://doi.org/10.1016/S0920-9964(03)00189-0
Chen, Esperança, J. P., & Wang, S. 2022. The Impact of Artificial Intelligence on Firm Performance: An Application of the Resource-Based View to e-Commerce Firms. Frontiers in Psychology, 13(April).
CNN-Indonesia. 2023. Why Are Many Startups Failing? https://app.cnnindonesia.com/
data-books. 2023. survey: chatgpt becomes the most used ai application in indonesia. https://databoks.katadata.co.id.
Davenport, T. H. & Ronanki, R. 2018. Artificial intelligence for the real world. Harvard Business Review, 1, 108–116.
Detik.com. 2023. List of 10 Famous Startups that Go Out of Business in Indonesia. Detik Finance.
El-Kassar, A. N., Dagher, G. K., Lythreatis, S., & Azakir, M. 2022. Antecedents and consequences of knowledge hiding: The roles of HR practices, organizational support for creativity, creativity, innovative work behavior, and task performance. Journal of Business Research, 140(January 2021), 1–10. https://doi.org/10.1016/j.jbusres.2021.11.079
El Bhilat, E. M., El Jaouhari, A., & Hamidi, L. S. 2024. Assessing the influence of artificial intelligence on agri-food supply chain performance: the mediating effect of distribution network efficiency. Technological Forecasting and Social Change, 200(December 2023), 123149. https://doi.org/10.1016/j.techfore.2023.123149
Fetrati, M. A., Hansen, D., & Akhavan, P. 2022. How to manage creativity in organizations: Connecting the literature on organizational creativity through bibliometric research. Technovation, 115(January), 102473. https://doi.org/10.1016/j.technovation.2022.102473
Formation and Market Performance in Healthcare: The Mediating Role of Patient's Cognitive Engagement. Information Systems Frontiers, 25(6), 2197– 2220. https://doi.org/10.1007/s10796-021-10136-6
Gao, Y., Zhao, X., Xu, X., & Ma, F. 2021. A study on the cross-level transformation from individual creativity to organizational creativity. Technological Forecasting and Social Change, 171(June), 120958. https://doi.org/10.1016/j.techfore.2021.120958
Hradecky, D., Kennell, J., Cai, W., & Davidson, R. 2022. Organizational readiness to adopt artificial intelligence in the exhibition sector in Western Europe. International Journal of Information Management, 65(February), 102497. https://doi.org/10.1016/j.ijinfomgt.2022.102497
Imran, M. Y., Elahi, N. S., Abid, G., Ashfaq, F., & Ilyas, S. 2020. Impact of perceived organizational support on work engagement: Mediating mechanism of thriving and flourishing. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 82. https://doi.org/10.3390/JOITMC6030082
Infobanknews. 2023. Mekari Research: As Many as 62 Percent of Companies in Indonesia Have the Potential to Adopt AI. https://infobanknews.com//
Kominfo.go.id. 2023. Secretary General of Communication and Informatics: The Use of AI Must Be in Accordance with Ethical Values in Indonesia. https://aptika.kominfo.go.id/2023
Krakowski, S., Luger, J., & Raisch, S. 2023. Artificial intelligence and the changing sources of competitive advantage. Strategic Management Journal, 44(6), 14–25.
Kumar, P., Dwivedi, Y. K., & Anand, A. (2023). Responsible artificial intelligence (AI) for value formation and market performance in healthcare: The mediating role of patient’s cognitive engagement. Information Systems Frontiers, 25(6), 2197-2220.
Lada, S., Chekima, B., Karim, M. R. A., Fabeil, N. F., Ayub, M. S., Amirul, S. M., Ansar, R., Bouteraa, M., Fook, L. M., & Zaki, H. O. 2023. Determining factors related to artificial intelligence (AI) adoption among Malaysia's small and medium-sized businesses. Journal of Open Innovation: Technology, Market, and Complexity, 9(4), 100144. https://doi.org/10.1016/j.joitmc.2023.100144
Lane, A. 2023. Towards a theory of organizational storytelling for public relations: An engagement perspective. Public Relations Review, 49(1), 102297. https://doi.org/10.1016/j.pubrev.2023.102297
Lu, Y. & K., R. 2017. Understanding the Link Between Information Technology Capability and Organizational Agility: An Empirical Examination. MIS Quarterly, 35(4), 931–954.
Methot, D. G. D. 2011. Calibrating the compass: Using quality improvement data for outcome evaluation, cost control, and creating quality organizational cultures. Residential Treatment for Children and Youth, 21(3), 45–68. https://doi.org/10.1300/J007v21n03_03
Mikalef, P. & Gupta, M. 2021. Artificial intelligence capability: Conceptualization, measurement calibration, and empirical study on its impact on organizational creativity and firm performance. Information and Management, 58(3), 10–34. https://doi.org/10.1016/j.im.2021.103434
Mikalef, P., Lemmer, K., Schaefer, C., Ylinen, M., Fjørtoft, S. O., Torvatn, H. Y., Gupta, M., & Niehaves, B. 2023. Examining how AI capabilities can foster organizational performance in public organizations. Government Information Quarterly, 40(2).
Nguyen, N. P., Hang, N. T. T., Hiep, N., & Flynn, O. 2023. Does transformational leadership influence organisational culture and organisational performance: Empirical evidence from an emerging country. IIMB Management Review, 35(4), 382–392. https://doi.org/10.1016/j.iimb.2023.10.001
Opazo-Basáez, M., Monroy-Osorio, J. C., & Marić, J. 2024. Evaluating the effect of green technological innovations on organizational and environmental performance: A treble innovation approach. Technovation, 129(February 2023). https://doi.org/10.1016/j.technovation.2023.102885
Patnaik, S., Munjal, S., Varma, A., & Sinha, S. 2022. Extending the resource-based view through the lens of the institution- based view: A longitudinal case study of an Indian higher educational institution. Journal of Business Research, 147(April), 124– 141.
Quille, R. V. E., Almeida, F. V. de, Borycz, J., Corrêa, P. L. P., Filgueiras, L. V. L., Machicao, J., Almeida, G. M. de, Midorikawa, E. T., Demuner, V. R. de S., Bedoya, J. A. R., & Vajgel, B. 2023. Performance Analysis Method for Robotic Process Automation. Sustainability (Switzerland), 15(4), 1–19. https://doi.org/10.3390/su15043702
Ren, Y., Wu, K. J., Lim, M. K., & Tseng, M. L. 2023. Technology transfer adoption to achieve a circular economy model under resource-based view: A high-tech firm. International Journal of Production Economics, 264(July), 108983.
Riggs, S. E., Grant, P. M., Perivoliotis, D., & Beck, A. T. 2012. Assessment of cognitive insight: A qualitative review. Schizophrenia Bulletin, 38(2), 338–350. https://doi.org/10.1093/schbul/sbq085
Rumanti, A. A., Rizana, A. F., & Achmad, F. 2023. Exploring the role of organizational creativity and open innovation in enhancing SMEs performance. Journal of Open Innovation: Technology, Market, and Complexity, 9(2), 100045. https://doi.org/10.1016/j.joitmc.2023.100045
Saha, S. & Kumar, S. P. 2018. Organizational culture as a moderator between affective commitment and job satisfaction: Empirical evidence from Indian public sector enterprises. International Journal of Public Sector Management, 31(2), 184–206. https://doi.org/10.1108/IJPSM-03-2017-0078
Sahoo, S., Kumar, S., Donthu, N., & Singh, A. K. 2024. Artificial intelligence capabilities, open innovation, and business performance – Empirical insights from multinational B2B companies. Industrial Marketing Management, 117(December 2023), 28–41. https://doi.org/10.1016/j.indmarman.2023.12.008
Shahzad, M. F., Xu, S., Naveed, W., Nusrat, S., & Zahid, I. 2023. Investigating the impact of artificial intelligence on human resource functions in the health sector of China: A mediated moderation model. Heliyon, 9(11), e21818. https://doi.org/10.1016/j.heliyon.2023.e21818
Somwethee, P., Aujirapongpan, S., & Ru-Zhue, J. 2023. The influence of entrepreneurial capability and innovation capability on sustainable organization performance: Evidence of community enterprise in Thailand. Journal of Open Innovation: Technology, Market, and Complexity, 9(2), 100082. https://doi.org/10.1016/j.joitmc.2023.100082
Sullivan, Y. & Fosso Wamba, S. 2024. Artificial intelligence and adaptive response to market changes: A strategy to enhance firm performance and innovation. Journal of Business Research, 174(December 2023), 114500. https://doi.org/10.1016/j.jbusres.2024.114500
Tejeda, H., Kumar, A., Smyth, P., & Steyvers, M. 2022. AI-Assisted Decision-making: a Cognitive Modeling Approach to Infer Latent Reliance Strategies. Computational Brain and Behavior, 5(4), 491–508. https://doi.org/10.1007/s42113-022-00157-y
Van Camp, L. S. C., Sabbe, B. G. C., & Oldenburg, J. F. E. 2017. Cognitive insight: A systematic review. Clinical Psychology Review, 55(April), 12–24. https://doi.org/10.1016/j.cpr.2017.04.011
Wang, Armstrong, S. J., Li, Y., Li, W., Hu, X., & Zhong, X. 2023. The influence of leader-follower cognitive style congruence on organizational citizenship behaviors and the mediating role of trust. Acta Psychologica, 238(June), 103964. https://doi.org/10.1016/j.actpsy.2023.103964
Wang, C., Chen, J., & Xie, P. (2022). Observation or interaction? Impact mechanisms of gig platform monitoring on gig workers' cognitive work engagement. International Journal of Information Management, 67(July), 102548. https://doi.org/10.1016/j.ijinfomgt.2022.102548
Copyright (c) 2025 International Journal of Science and Society

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

.png)

.jpg)
.png)

.png)
.png)
.png)
1.png)

.jpg)



-modified.png)
-modified.png)


-modified.png)


