AI Orientation, Capabilities, and Business Value: Case Study

In this study, artificial intelligence (AI) orientation, AI capabilities, as well as process-oriented dynamic capabilities (PDCs) within the realm of AI business value creation, are unpacked through multiple case studies in Hong Kong. We propose a conceptual framework suggesting that AI resources enable organizations to develop PDCs, manifesting in several abilities, thereby contributing to business value. In addition, the case study’s findings indicate that AI capabilities developed by organizations correlate with their AI orientation, which is their overall strategic direction and aspiration of employing AI technology. Apart from basic AI capabilities, AI-oriented organizations would develop advanced AI capabilities. The proposed conceptual framework and findings can guide and assist practitioners in utilizing AI resources and building AI capabilities. This study also enriches the growing body of research on AI and contributes to the limited understanding of AI capabilities in the extant literature.