Beyond Digital Capabilities: A Four-Pillar Framework of AI-Enabled Managerial Capital in Cross-Border Alliances

The rapid advancement of artificial intelligence (AI) and growing global fragmentation are reshaping how multinational enterprises manage cross-border strategic alliances. Prior research has focused on alliance formation and resource access, yet less attention has been paid to how AI transforms the managerial capabilities required for effective alliance orchestration. This study addresses this gap by examining how AI augmentation may alter the microfoundations of dynamic managerial capabilities (DMC) in cross-border alliances. Building on DMC theory, the paper proposes an AI-augmented framework with four interrelated microfoundations: AI-enhanced managerial cognition, algorithmic social capital, hybrid human–AI capital, and AI-enabled political capital. Using an abductive research design and longitudinal case analyses of Carrefour–Google, Walmart–IBM, and Tesco–Carrefour, the study illustrates how AI may support the reshaping of sensing, seizing, and reconfiguring processes. It uses a Gioia-informed coding procedure to enhance transparency in the elaboration of theory. The findings suggest that AI may improve data-driven sensing, enable scalable coordination through algorithmic trust, enhance ambidexterity through human–AI collaboration, and support proactive regulatory positioning. However, these benefits are expected to be contingent on institutional conditions, including data governance constraints and power asymmetries. The study contributes by extending DMC theory and highlighting how AI-enabled capabilities could drive alliance performance in complex global environments.