Abstract
The purpose of this study was to determine the effect of AI capabilities (Top Management support for AI use, Employee Expertise in the use of AI, Information Technology infrastructure support for AI use, and the use of AI in managing data) on the customer’s expectations through product quality improvement in manufacturing organisations.
The current research contributes to the emerging literature on Artificial Intelligence (AI) by empirically validating an AI research framework that links AI Capabilities (Top Management support, Employee Expertise, IT Infrastructure, and Data Management) to Product Quality and Customer Satisfaction within the manufacturing sector of a developing country, specifically South Africa. Furthermore, this study theoretically advances the understanding of the mechanism linking AI use to performance by establishing the significant mediating role of Product Quality between the AI Capabilities of Employee Expertise and Data Management and the goal of enhanced Customer Satisfaction.
A questionnaire was administered to a sample of 122 out of 150 manufacturing organisations in South Africa, which constitutes an 81% response rate. Confirmatory Factor Analysis was used to verify the reliability and validity of the measuring instrument. Correlation analysis and hypothesis testing were conducted to determine the relationship between the AI capabilities and Customer Satisfaction mediated through Product Quality.
This study found that the AI capabilities of Employee Expertise and Data Management had a strong positive and significant influence on both Product Quality and Customer Satisfaction. The other two AI capabilities indicated non-significant relationships with Product Quality and Customer Satisfaction.
The results of this study could provide valuable information to managers of manufacturing in identifying those AI Capabilities that both positively and significantly enhance customer satisfaction through product quality improvement.