Purpose: Artificial intelligence (AI) is helping organization to acquire knowledge, take informed decisions, innovate, allocate resources and interact with stakeholders effectively and hence, bring a transformative up-scaling which is resulting in gaining successful competitive edge. However, mere adoption and usage of AI will not result in gaining quick and automatic sustainable competitive advantage. Therefore, there are various other factors required for an organization to obtain competitive edge and the factors like the ability of organizations to convert technological investments into durable competitive outcomes, complementary organizational resources, dynamic capabilities, innovation, human capital, leadership, sustainability practices and responsible governance. With a focus on the developing role of artificial intelligence, this conceptual paper examines and incorporates recent research on the causes and effects of sustainable competitive advantage.
Design/Methodology/Approach: The adoption of blockchain, corporate digital responsibility, AI adoption, green innovation, knowledge management capability, human resource capability, fintech adoption, strategic leadership, women's strategic leadership, and lean and green manufacturing practices are studies that are cited in this paper. The Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT) provide additional support for conceptualizing the sustainable competitive advantage.
Findings: The paper proposes an integrated conceptual framework in which AI-enabled capabilities act as an important contemporary antecedent, while organizational agility, innovation capability, business model innovation and sustainability-oriented capabilities function as mechanisms through which AI and other strategic resources generate SCA. The proposed framework identifies technological, organizational, strategic, sustainability and institutional factors as major antecedent categories and identifies sustainable performance, organizational resilience, business value creation, innovation performance and long-term organizational competitiveness as major outcomes.
Future Research: By changing the focus from "AI adoption: competitive advantage" to "AI-enabled capability: sustainable competitive advantage," the paper adds to the body of literature and offers suggestions for further empirical study.