Strategic role of artificial intelligence in affecting sustainable performance through moderating effect of performance management of digital marketing activities

Abstract

The objective of this research was to examine how artificial intelligence (AI) focused digital business strategy helps small and medium-sized enterprises (SMEs) to achieve success in manufacturing by measuring the financial benefits of having a digitally enabled performance measurement in marketing. The study focused on defining a company’s digital business strategy through three parameters: development, objective and resource in United Arab Emirates (UAE). A quantitative methodology was employed, drawing data from 212 managers and key decision-makers in manufacturing firms, and analyzed using partial least squares structural equation modeling. The findings of the study found that all three parameters of the AI focused digital business strategy influenced the financial success of manufacturing companies; the biggest influences were from the development and resource parameters. The study also found that performance management in marketing positively impacted the sustainable financial performance of manufacturing companies by directly impacting performance and enhancing the effectiveness of the development and resource parameters. Performance management was found to not have a moderating effect on the objective parameter. These results carry significant implications for practical management solutions, i.e. the need for manufacturing companies to develop a simple strategic plan, align resources, and monitor performance in real-time to better position themselves to achieve long term sustainable financial performance. Furthermore, this study contributes to United Nations Sustainable Development Goal 12 by illustrating how AI-driven digital strategies, together with the performance evaluation of digital marketing activities, facilitate more efficient resource utilization and enhance the quality of managerial decision-making.