AI Capability and Digital Transformation The Moderating Role of Sustainable Innovation in Shaping Perceived Competitive Advantage

Walter Tabelessy; Pathrisye Richendi Limba; Maulina Annur Sirayan

doi:10.33633/jpeb.v11i2.17731

Authors

Walter Tabelessy Fakultas Ekonomi dan Bisnis Universitas Pattimura
Pathrisye Richendi Limba Fakultas Ekonomi dan Bisnis Universitas Pattimura
Maulina Annur Sirayan Fakultas Ekonomi dan Bisnis, Universitas Pattimura

DOI:

https://doi.org/10.33633/jpeb.v11i2.17731

Keywords:

Artificial Intelligence Capabilities, Digital Transformation, Sustainable Innovation, Competitive Advantage, Generation Z

Abstract

The growth of e-commerce has intensified competition, necessitating the need for companies to build competitive advantage through the integration of digital capabilities and sustainable business practices. This study analyzes the influence of AI Capability and Digital Transformation on Perceived Competitive Advantage and examines the moderating role of Sustainable Innovation. The study employed a quantitative approach with a survey of 160 Generation Z Shopee and TikTok Shop users in Maluku Province, Indonesia. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that AI Capability and Digital Transformation have a positive and significant effect on Perceived Competitive Advantage, with Digital Transformation having a stronger effect. Furthermore, Sustainable Innovation significantly strengthens the influence of both AI Capability and Digital Transformation on Perceived Competitive Advantage, indicating that a sustainable innovation orientation enhances the effectiveness of digital capabilities in creating value for customers. These findings indicate that competitive advantage in e-commerce depends not only on technology adoption but also on an organization's ability to integrate sustainability principles into its innovation strategy. This research enriches the marketing and digital transformation literature through the integration of Resource-Based View, Dynamic Capability Theory, and Stakeholder Theory, while providing practical implications for e-commerce platforms in designing customer-oriented digital strategies that are in line with the expectations of Generation Z consumers.

References

Andreassen, T. W. (2024). Commentary: Perceiving Innovation: Unveiling the Impact on Market Performance. Journal of Service Research, 27(4), 497–500. https://doi.org/10.1177/10946705241253993

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Brislin, R. W. (1984). Cross-Cultural Research Methods. 47–48.

Chen, Y. S., Lai, S. B., & Wen, C. T. (2006). The influence of green innovation performance on corporate advantage in Taiwan. Journal of Business Ethics, 67(4), 331–339. https://doi.org/10.1007/s10551-006-9025-5

Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences. In The SAGE Encyclopedia of Research Design. https://doi.org/10.4135/9781071812082.n600

Dangelico, R. M., & Pujari, D. (2010). Mainstreaming green product innovation: Why and how companies integrate environmental sustainability. Journal of Business Ethics, 95(3), 471–486. https://doi.org/10.1007/s10551-010-0434-0

Dillman, A. D., Symith, D. J., & Christian, M. L. (2014). Internet, Phone, Mail, and Mixed‐Mode Surveys: The Tailored Design Method (Vol. 2, Number 1980).

Dwivedi, Y. K., Ismagilova, E., Hughes, D. L., Carlson, J., Filieri, R., Jacobson, J., Jain, V., Karjaluoto, H., Kefi, H., Krishen, A. S., Kumar, V., Rahman, M. M., Raman, R., Rauschnabel, P. A., Rowley, J., Salo, J., Tran, G. A., & Wang, Y. (2021). Setting the future of digital and social media marketing research: Perspectives and research propositions. International Journal of Information Management, 59(June). https://doi.org/10.1016/j.ijinfomgt.2020.102168

El-Haddadeh, R. (2020). Digital Innovation Dynamics Influence on Organisational Adoption: The Case of Cloud Computing Services. Information Systems Frontiers, 22(4), 985–999. https://doi.org/10.1007/s10796-019-09912-2

El-Hishi, H. M. (2026). Employee resilience under AI disruption: the mediating role of perceived organizational support & moderating effects of ethical leadership and career stage. Strategy and Leadership, 1–20. https://doi.org/10.1108/SL-05-2025-0123

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research This, 18(1), 39–50.

Freeman, E. R., & McVea, J. (1984). A Stakeholder Approach to Strategic Management. Darden Graduate School of Business Administration, 77(6), 671–677. https://doi.org/10.1002/jctb.619

George, G., & Schillebeeckx, S. J. D. (2022). Digital transformation , sustainability , and purpose in the multinational enterprise. Journal of World Business, 57(3), 101326. https://doi.org/10.1016/j.jwb.2022.101326

Hair Jr et al. (2022). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook (p. 197). Springer Nature. In Structural Equation Modeling: A Multidisciplinary Journal (Vol. 30, Number July).

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8

Huang, M. H., & Rust, R. T. (2021). A Framework for Collaborative Artificial Intelligence in Marketing. Journal of Retailing, 98(2), 209–223. https://doi.org/10.1016/j.jretai.2021.03.001

Huseynli, B. (2022a). Digital transformation for improving customer experience. In Handbook of Research on Interdisciplinary Reflections of Contemporary Experiential Marketing Practices. https://doi.org/10.4018/978-1-6684-4380-4.ch005

Huseynli, B. (2022b). Digital transformation for improving customer experience. In Handbook of Research on Interdisciplinary Reflections of Contemporary Experiential Marketing Practices (pp. 78–100). IGI Global. https://doi.org/10.4018/978-1-6684-4380-4.ch005

Kang, K. (2025). Impact of Leadership Styles on Organizational Agility Within the Technology Industry: Case of the UK. Entrepreneurship Research Journal, 15(4), 783–814. https://doi.org/10.1515/erj-2025-0031

Li, L., Xu, C., Zhang, Q., Liu, Y., & Li, Q. (2025). Leveraging generative AI capabilities for competitive advantage: A moderated mediation analysis of environmental dynamism and service innovation. Industrial Marketing Management, 128(February), 10–20. https://doi.org/10.1016/j.indmarman.2025.05.007

Limba, P. R. (2026). The Influence of WOM, Trust, and Product Quality on Purchase Intention of Maluku Traditional Food Products Moderated by Peers. RIGGS: Journal of Artificial Intelligence and Digital Business, 4(4), 10661–10666. https://doi.org/10.31004/riggs.v4i4.5126

Mikalef, P., Islam, N., Parida, V., Singh, H., & Altwaijry, N. (2023). Artificial intelligence (AI) competencies for organizational performance: A B2B marketing capabilities perspective. Journal of Business Research, 164(April), 113998. https://doi.org/10.1016/j.jbusres.2023.113998

Ojong, N. (2025). Interrogating the Economic, Environmental, and Social Impact of Artificial Intelligence and Big Data in Sustainable Entrepreneurship. Business Strategy and the Environment, 34(7), 8305–8320. https://doi.org/10.1002/bse.70031

Payne, E. H. M., Peltier, J., & Barger, V. A. (2020). Enhancing the value co-creation process : arti fi cial intelligence and mobile banking service platforms. Journal of Research in Interactive Marketing. https://doi.org/10.1108/JRIM-10-2020-0214

podsakoff, M, P., MacKenzie, B, S., & Lee, Yeon, J. (2003). Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies.

Pulido, F. L. P. (2023). FinTech and change management: Challenges and necessities. In Mainstreaming Cryptocurrency and the Future of Digital Finance. https://doi.org/10.4018/978-1-6684-8368-8.ch007

Sarstedt, M., Hair, J. F., Pick, M., Liengaard, B. D., Radomir, L., & Ringle, C. M. (2022). Progress in partial least squares structural equation modeling use in marketing research in the last decade. Psychology and Marketing, 39(5), 1035–1064. https://doi.org/10.1002/mar.21640

Tabelessy, W. (2024). Integration Strategy to Improve Competitive Advantage and Marketing Performance of Culinary MSMEs in Ambon City. International Journal of Applied Economics, Acounting and Management (IJAEAM), 2(5), 405–418. https://journal.multitechpublisher.com/index.php/ijaeam

Tabelessy, W., & Nanere, M. (2026). How eco-badges shape online purchase decisions: the roles of perceived diagnosticity and label credibility. Journal of Trade Science, 14(2), 106–126. https://doi.org/10.1108/jts-01-2026-0010

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Knowledge and Strategy, 18(March), 77–116. https://doi.org/10.4337/9781035334995.00014

Teece, J. D., & Augier, M. (2007). Dynamic Capabilities and Multinational Enterprise: Penrosean Insights and Omissions.

Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122(November 2019), 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022

Vial, G. (2019). Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003

Vorhies, D. W., & Morgan, N. A. (2005). Capabilities for Sustainable Competitive Advantage. Journal of Marketing, 69(January), 80–94.