What is it about?
AI capability plays a significant role in enhancing competitive advantage, with business model innovation acting as a vital mediating factor. These results carry important practical implications for SMEs, underscoring the necessity of cultivating and advancing AI capability to foster innovation within their business models.
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Why is it important?
As artificial intelligence becomes widely accessible to firms of all sizes, many organisations still struggle to turn AI investments into real competitive benefits. This study is important because it shows that AI does not create advantage on its own. Instead, firms gain value from AI when it actively reshapes how they design and run their business models. By explaining how AI capabilities drive continuous adaptation and innovation, this research helps managers understand where to focus their efforts and helps researchers better explain why some firms benefit from AI while others do not.
Perspectives
Working on this article made me reflect on how often organisations to overestimate technology and underestimate the importance of organisational change. In many conversations with managers, I noticed a recurring frustration: they invested in AI but struggled to see meaningful results. This motivated me to look beyond the algorithms and focus on how AI reshapes business thinking and decision-making. I hope this article will encourage both researchers and practitioners to view AI not as a shortcut to success, but as a catalyst for learning, adaptation, and long-term innovation.
Sunan Shao
Read the Original
This page is a summary of: The influence of AI capability on enterprise competitive advantage: the mediating effect of business model innovation, Journal of Enterprise Information Management, January 2026, Emerald,
DOI: 10.1108/jeim-08-2024-0453.
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