article · Journal of Open Innovation Technology Market and Complexity
Artificial intelligence adoption within workplaces increasingly influences workforce outcomes and overall business success. Focusing on the organisational context of Ethio Telecom, this research examines how deploying artificial intelligence affects organizational performance through the mediating effect of employee productivity. Survey data gathered from 172 purposively selected employees underwent partial least squares structural equation modelling. The analysis revealed positive, significant relationships across all evaluated areas, confirming that artificial intelligence directly enhances both employee productivity and organizational performance. In addition, employee productivity acts as a partial mediator between artificial intelligence and organizational performance, meaning gains in individual output reinforce broader institutional results. These findings align with resource-based view and human capital theories, indicating that modern enterprises can improve operational outcomes by pairing technological adoption with work environments that foster staff productivity.
Enterprises investing in artificial intelligence need clarity on whether digital tools translate into tangible business gains. Demonstrating that employee productivity acts as a crucial bridge between technology adoption and organisational success helps executives design technology programmes that support staff effectively, ensuring that digital investments achieve their full institutional potential.
The research represents early-stage organisational studies rather than a deployable product or service. Telecommunications providers, corporate planners, and human resource teams can apply these findings when structuring workplace technology programmes. Because the abstract examines operational dynamics rather than creating a technical tool, there is no direct commercial product, but the insights can inform enterprise digital transformation strategies and change-management frameworks.
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The adoption of Artificial intelligence (AI) technology in the workplace is becoming more common, with several research highlighting both its positive and adverse influence on employee productivity (EP) and organizational performance (OP). Furthermore, there is a scarcity of research focused on the mediator role of EP in the nexus between AI and OP. This ambiguity underscores the need for a comprehensive understanding of how AI interacts with EP and OP within specific organizational contexts, such as Ethio Telecom. Therefore, this study aimed to investigate the impact of AI on OP with a mediating role of EP. Quantitative data was collected through an online survey using Kobo Toolbox from 172 purposively selected employees. AI was modeled as third third-order formative construct, while EP and OP were first-order reflective constructs. The variables were measured using validated multi-item questionnaires with a 7-point Likert scale. The association between these variables was investigated with PLS-SEM in SMART PLS 4.1.03. The results showed that there were positive and significant relationships between AI and EP, AI and OP, EP and OP, and AI on OP through EP. Furthermore, EP served as a partial mediator between OP and AI. These findings are consistent with previous studies and theories, such as the resource-based view and human capital theories. The results suggest that organizations can dramatically improve performance in the digital age by implementing AI and creating a work environment that encourages productivity.
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DOI: 10.1016/j.joitmc.2025.100474
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