AI Capability and Performance: The Strategic Roles of Cyber Risk Management Firm and Knowledge Management Systems in Pakistan Halal Foods

Abstract

The fast development of digital technology has changed the way organizations operate and increased the importance of artificial intelligence capabilities, cyber risk management and knowledge management systems, in enhancing business performance. The present study examined the impact of artificial intelligence capabilities on organizational performance, and the mediating role of cyber risk management and knowledge management systems in halal food manufacturing enterprises in Pakistan. The study is based on the Resource-Based View, the Theory of Dynamic Capabilities and the Knowledge-Based View. The study has adopted a quantitative research methodology with a cross-sectional survey design. Data was collected from 300 management workers working in halal food production companies in Pakistan using a standardised questionnaire. The collected data were analyzed using SPSS and SmartPLS. Results show that artificial intelligence capabilities have a significant positive effect on corporate performance, cyber risk management and knowledge management systems. In addition, the cyber risk management and knowledge management systems contribute greatly to the performance of the organization. The results also reveal that the proposed model possesses adequate explanatory power, predictive relevance, reliability and validity. The study contributes to the existing literature on digital transformation and organizational performance by providing real findings from the halal food manufacturing industry of Pakistan. The results suggest that organizations should spend money on AI technology, cybersecurity measures and knowledge management systems to enhance operational efficiency, organizational resilience and sustained competitive advantage.