The Effect of AI Absorptive Capacity of Organizations on Workers’ Perceptions About Smart Work Environment Perception Towards Digital Innovation Behavior.

This study investigates the effect of organizational artificial intelligence (AI) absorptive capacity on employees’ perceptions of the smart work environment and how these perceptions influence their digital innovative behavior in the telecommunications industry, with Digital Transformational Leadership as a moderating variable. In this study, two important theoretical perspectives were utilized: Absorptive Capacity Theory, which highlights how organizations acquire, assimilate, and apply their knowledge related to AI, and Socio-Technical Systems Theory, which addresses the connection between technology and the social aspect of the working environment. A quantitative research design was used through partial least squares structural equation modeling (PLS-SEM). The data were gathered from 279 respondents working in the telecommunication industry in Jordan. These respondents worked for internet service providers, network operators, and mobile network operators. The findings show that organizational AI absorptive capacity has a strong positive effect on Smart Work Environment Perception (β = 0.742), which in turn enhances Digital Innovative Behavior (β = 0.681). Smart Work Environment Perception partially mediates the relationship between AI absorptive capacity and Digital Innovative Behavior (indirect effect β = 0.506), while Digital Transformational Leadership positively moderates the relationship between AI absorptive capacity and the smart work environment (β = 0.276) and between the smart work environment and Digital Innovative Behavior (β = 0.241). The current research adds value to the literature surrounding AI adoption within organizations by examining how technical capabilities and organizational leadership help foster Digital Innovative Behavior in the telecommunications industry.