Structural Equation Modeling of the Impact of Artificial Intelligence on Digital Marketing Performance: Considering the Mediating Role of Dynamic Organizational Capabilities and Big Data Analytics Capability

Abstract

Objective: This study aims to investigate the impact of artificial intelligence (AI) on digital marketing performance, considering the mediating role of dynamic organizational capabilities (DOC) and big data analytics capability (BDAC). The research seeks to provide a comprehensive understanding of the mechanisms through which AI enhances digital marketing outcomes and the contextual factors that facilitate this impact.

Methodology:

The study employs a structural equation modeling (SEM) approach to analyze data collected from  samplle size 226 professionals working in e-commerce, digital media, and marketing services companies in  Mashhad city of Iran.

. The research utilizes standardized questionnaires to measure AI, digital marketing performance, DOC, and BDAC. The validity and reliability of the measurement instruments are assessed using content validity ratio (CVR), content validity index (CVI), and Cronbach’s alpha coefficient. The study uses proportionate stratified random sampling to ensure representativeness of the sample.

Findings: The results provide empirical evidence that AI has a positive and significant impact on digital marketing performance, both directly (β = 0.37, p < 0.001) and indirectly through the mediating effects of DOC (β = 0.12, p < 0.01) and BDAC (β = 0.15, p < 0.001). The findings also demonstrate that AI positively influences DOC (β = 0.42, p < 0.001) and BDAC (β = 0.45, p < 0.001), which in turn enhance digital marketing performance (β = 0.29, p < 0.001 and β = 0.33, p < 0.001, respectively).

Conclusion: This study contributes to the literature on AI and digital marketing by providing empirical evidence on the impact of AI on digital marketing performance and the underlying mechanisms through which AI enhances marketing outcomes. The findings highlight the importance of developing organizational capabilities and leveraging big data analytics to fully realize the potential of AI in digital marketing. The study offers practical insights for managers and practitioners, emphasizing the need to invest in AI technologies, develop DOC and BDAC, and undertake broader organizational transformations to effectively harness the power of AI in digital marketing.