From AI-CRM to Firm Resilience: The Role of AI-Driven Decision Making (AIDDM) and Digital Platform Capabilities

Abstract

The AI-customer relationship management (AI-CRM) presents opportunities to reshape how firms engage, enhance their analysis of large volumes of customer data, and develop processes that improve their resilience. To bridge this gap, the present study investigates the relationship between AI-CRM and Artificial Intelligence-Driven Decision Making (AIDDM), with digital platform capabilities as a mediating factor. Furthermore, it examines whether AIDDM contributes to transformative resilience within firms by mediating the association between AI-CRM and firm resilience. A conceptual model was developed and empirically tested using survey data collected from 262 experts working in Saudi Arabian enterprises. The Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to assess the hypothesized relationships and mediation effects. The results confirmed the influence of AI-CRM on AIDDM and digital platform capabilities, which significantly enhance firm resilience. Furthermore, the analysis demonstrates that AIDDM and digital platform capabilities mediate the effects of AI-CRM on resilience. This underscores the potential of AI-CRM adoption to support adaptive capabilities within organizational systems. This research advances the theories of RBV and DCV by highlighting how AI-CRM advances capabilities that support resilience in dynamic environments. It positions AI-CRM and AIDDM as capabilities associated with organizational adaptation and innovation in dynamic environments. Additionally, it offers managers theoretically grounded guidance on aligning their AI-CRM and AIDDM to enhance overall firm resilience and support socio-economic objectives, thereby enabling firms to make meaningful contributions to digital innovation.