The impact of innovation and artificial intelligence on organizational performance: the case of companies in the textile, clothing and leather sector in Morocco

Abstract

In this article, we explore the impact of innovation and artificial intelligence (AI) on the organizational performance of companies in the textile, clothing, and leather sector in Morocco using the Partial Least Squares (PLS) structural equation method. The research is based on a quantitative study of 79 companies to examine how the adoption of advanced technologies and innovative practices influence operations and competitiveness in this sector. Our findings reveal a negative influence of innovation and AI on organizational performance, suggesting challenges in the effective implementation of these technologies, perhaps due to digital skills gaps, inappropriate innovation strategies, or insufficient technological infrastructure. We emphasize the need for a holistic approach to integrating AI and innovation, recommending alignment between technology initiatives and strategic business objectives, as well as improved digital skills and increased employee training.

Keywords: innovation; artificial intelligence; organizational performance; the digital age; the textile, clothing and leather sector.

Classification JEL: C39, O30

Paper type: Empirical Research