How human AI skills and competitive psychological climate drive organizational innovation

This paper investigates the impact of human AI skills and competitive psychological climate on organizational innovation in Jordan’s telecommunication companies: Zain, Orange, and Umniah. A descriptive-analytical method was employed whereby structured questionnaires were administered to 552 employees. The data were analyzed using partial least squares structural equation modeling (PLS-SEM). The results provide evidence that human AI skills (β = 0.68, p < 0.001) have a strong positive impact, which is slightly lower than that of competitive psychological climate (β = 0.74, p < 0.001) on organizational innovation. Additionally, the competitive psychological climate moderated the effects of human AI skills and organizational innovation (β = 0.72, p < 0.001). Based on these findings, integrating advanced human AI competencies with a constructively competitive psychological environment is essential for innovation enhancement. The paper highlights the need to raise awareness of AI skill deficiencies and encourage a sense of ethical competition in the industry to drive innovation, thereby offering guidance to telecom companies in Jordan that face the need for digital transformation. Acknowledgment The author is grateful to Middle East University, Amman, Jordan, for the financial support to cover this article’s publishing fee.