Volume 4 number 1 (10)

Original research

ARTIFICIAL INTELLIGENCE AND DYNAMIC CAPABILITIES: ENHANCING SUSTAINABLE COMPETITIVE ADVANTAGE IN BUSINESS ORGANIZATIONS

Pages 111-122

DOI 10.61552/JIBI.2026.01.010

ORCID Selgas-Cors Marc, ORCID Thiébaut Renata


Abstract: Artificial Intelligence (AI) is emerging as a transformative force in business organizations, enhancing their adaptability and long-term competitiveness. In this study, the role of AI in improving dynamic capabilities—specifically sensing, seizing, and reconfiguring capabilities—has been investigated. A mixed-method research approach has been employed that includes a quantitative survey comprising 243 participants from various sectors in Spain, and in-depth qualitative case studies of ten business organizations. For quantitative analysis, structural equation modelling has been used, while thematic analysis has been applied to case study data.
The results indicate that AI contributes positively to all three core dynamic capabilities: sensing capabilities (0.43), seizing capabilities (0.38), and reconfiguring capabilities (0.35). Furthermore, it has been found that these AI-enhanced capabilities are positively associated with sustainable competitive advantage, with a total contribution coefficient of 0.51. This study fills a significant research gap by empirically validating the relationship between AI technologies and dynamic capability development, offering new insights into the mechanisms through which AI influences strategic adaptability in organizations.
This research is based on a detailed evaluation of strategic use of AI within organizational structures. It provides practical implications for business managers to implement AI-powered decision support tools and foster continuous learning systems. The research also addresses social implications by highlighting potential challenges like job displacement, inequality, and algorithmic bias. It emphasizes the need for ethical AI governance and workforce reskilling to ensure equitable outcomes.

Keywords: Artificial intelligence, dynamic capabilities, business organization, innovation, competitive advantage.

Recieved: 08.03.2025. Revised: 14.05.2025. Accepted: 10.06.2025.