From AI investment to performance: How organizational alignment makes the difference in E-organizations

Abstract

Artificial intelligence (AI) is increasingly viewed as a strategic resource, yet many organizations struggle to convert AI investments into performance gains. Drawing on the resource-based view, this study examines how AI capability (AIC) influences organizational performance through organizational strategy, structure, and environment. Using survey data from 345 e-organizations and partial least squares structural equation modeling (PLS-SEM), the findings show that AIC does not directly improve organizational performance; instead, its effect is fully mediated by these organizational contingencies. The study advances general management theory by demonstrating that AI creates value only when supported by internal organizational alignment. The findings provide practical guidance for managers seeking to translate AI investments into organizational performance.