Integrated AI and Business Analytics for Sustaining Data-Driven and Technological Innovation: The Mediating Role of Integration Capabilities and Digital Platform

Abstract

While integrated Artificial Intelligence and Business Analytics (AI-BA) represents a significant advancement in marketing analytics and greatly influences firms’ innovations, there is a considerable gap in current research regarding its impact on technological innovation. This study addresses this gap by exploring how AI-BA affects data-driven and technological innovation, considering the mediating roles of integration capabilities and digital platforms. A theoretical model has been developed based on the dynamic capability view (DCV) and organizational information processing theory (OIPT). The model has been validated using data from enterprises in Saudi Arabia, and Partial Least Squares Structural Equation Modeling (PLS-SEM) has been employed for analysis. The findings demonstrate that AI-BA directly enhances both technological and data-driven innovation. Additionally, it was discovered that data-driven innovation, integration capabilities, and digital platforms mediate these effects, thereby enhancing technological innovation within the respective industries. These findings provide both theoretical and practical insights into the relationship between AI-BA, data-driven innovation, and technological innovation. They enrich the existing literature and provide actionable guidance for practitioners aiming to align their AI-BA with improved technological innovation outcomes.