Navigating the AI Landscape: The Interplay of Digital Leadership, Knowledge Management, and Organizational Agility

As artificial intelligence (AI) technologies become increasingly integrated into organizational operations, understanding the factors that drive AI-driven innovation performance is crucial. This study examines the roles of Digital Leadership (DL), Knowledge Management Effectiveness (KME) and AI Integration Capability (AIIC) in promoting Organizational Agility (OA) within Chinese industries. Using a mixed-methods approach and Structural Equation Modeling (SEM) with Smart Partial Least Squares (Smart PLS), the research analyzes data from 540 respondents across various sectors. The findings reveal significant direct effects of DL and AIIC on OA, as well as indirect effects mediated by DL and AIIC. Additionally, the study identifies moderation effects where AI-Driven Innovation Performance (AIDIP) enhances the relationships between KME and AIIC, as well as between AIIC and OA. The results highlight the importance of strategic leadership, effective knowledge management and robust AI integration capabilities in achieving organizational agility. The study contributes to the literature by providing a comprehensive model of AI-driven innovation performance and offers practical insights for organizations seeking to leverage AI technologies for competitive advantage. Limitations and future research directions are discussed, including the potential for global and longitudinal studies to further explore these relationships.