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Artificial Intelligence and Business Strategy towards Digital Transformation: A Research Agenda
Open accessAbstract
In the past decade, current literature and businesses have drawn attention to Artificial Intelligence (AI) tools and in particular to the advances in machine learning techniques. Nevertheless, while the AI technology offers great potential to solve difficulties, challenges remain implicated in practical implementation and lack of expertise in the strategic usage of AI to create business value. This paper aims to implement a systematic literature review analyzing convergence of the AI and corporate strategy and develop a theoretical model incorporating issues based on the existing research in this field. Eighty-one peer-reviewed articles were discussed on the basis of research methodology from Webster and Watson (2002). In addition to gaps in future research, a theoretical model is developed, discussing the four sources of value creation: AI and Machine Learning in organizations; alignment of AI tools and Information Technology (IT) with organizational strategy; AI, knowledge management and decision-making process; and AI, service innovation and value. These outcomes lead to both theoretical and managerial viewpoints, with extensive possibilities to generate new methods and types of management practices.
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“Recent research on the role of strategy in digital trans formation comprises mainly conceptual and systematic reviews (Hanelt et al., 2020; Saleh and Awny, 2020; Kitsios and Kamariotou, 2021).”
From Mastering digital transformation: The nexus between leadership, agility, and digital strategy (2022) · cites this paper as Kitsios and Kamariotou, 2021
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1 retracted
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“AI is referred to as the ability of a machine to learn from experience, adjust to new inputs and implement human-like tasks [3].”
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Background
Research works printed but not linked: 3
- Kitsios, F., Delimpasis, T., and Kamariotou, M. (2019, January 8–12). Digital Business Strategy: An Empirical Analysis of Mission statement content and Financial Performance. Proceedings of the 19th International Conference on Electronic Business, ICEB 2019, Newcastle upon Tyne, UK.
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Bannikov, V., Lobunets, T., Buriak, I., Maslyhan, O., & Shevchuk, L. (2022) · Revista Amazonía investiga · doi:10.34069/ai/2022.55.07.35 · Cited by 10
“Artificial intelligence refers to a machine's ability to learn from experience, adapt to new input data, and perform human tasks (Kitsios, & Kamariotou, 2021).”
BackgroundThe Impact of Consumer Complaints on Corporate Digital Transformation
Lu, Y.-C., Chang, H., & Zhou, Y. (2025) · International Review of Economics & Finance · doi:10.1016/j.iref.2025.104203 · Cited by 9
Generative AI Impact on Labor Market: Analyzing ChatGPT's Demand in Job AdvertisementsPreprint
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“…2023; Brynjolfsson, Rock, et al., 2018; Choudhury et al., 2020; Noy & Zhang, 2023; Peng et al., 2023), as well as transformation in human-machine interactions (Frank et al., 2019; Sturm et al., 2021), and the adoption of new business strategies (Caner & Bhatti, 2020; Kitsios & Kamariotou, 2021).”
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“…a wide range of activities, including the adoption of new technologies such as artificial intelligence, the Internet of Things, cloud computing, the development of new business models and processes, and the creation of new products and services (Kitsios & Kamariotou, 2021; Azar et al., 2023).”
BackgroundMuhtadi, M. A., & Putri, V. K. (2023) · Jurnal Hukum dan HAM Wara Sains · doi:10.58812/jhhws.v2i09.674 · Cited by 9
Rahul, N. A. (2024) · American Journal of Industrial and Business Management · doi:10.4236/ajibm.2024.144028 · Cited by 12
“Strategic alignment is the process of connecting an entire organization’s vision to tactical objectives and actual projects at ground level (Al-Surmi et al., 2020; Kitsios & Kamariotou, 2021; Zimon et al., 2020; Li et al., 2021).”
BackgroundInformation analysis for dynamic sale planning by AI decision support process
Wang, F., Luan, Y., Badawi, A., Ayad, A., Abdallah, A. F., Ali, M., Ahmad, Z., & Jiang, W. (2023) · Information Processing & Management · doi:10.1016/j.ipm.2023.103319 · Cited by 8
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“Diab [16], Reese [17], and Kitsios and Kamariotou [18] described this concept through an extensive review and comparison of the literature.”
BackgroundIndustry convergence and value innovation: a bibliometric analysis and systematic review
Chen, Y., Shen, L., Zhang, X., & Chen, Y.-T. (2022) · Kybernetes · doi:10.1108/k-01-2022-0097 · Cited by 8
Organisational tensions in introducing socially sustainable AI
Lanne, M., Nieminen, M., & Leikas, J. (2025) · Ai & Society · doi:10.1007/s00146-025-02293-y · Cited by 7
“The use of artificial intelligence (AI) has become more common in various organisations as a result of digital transformation (Kitsios and Kamariotou 2021; Manser Payne et al. 2021).”
To Gain Sustainable Competitive Advantages (SCA) Using Artificial Intelligence (AI) Over Competitors
Farooq, M. W., Nawaz, F., & Sabir, R. I. (2024) · Bulletin of Business and Economics (BBE) · doi:10.61506/01.00437 · Cited by 5
“Identifies key themes: AI and value creation, appropriation, protection, and sustainability (Kitsios & Kamariotou, 2021).”
BackgroundWay Forward to Digital Society – Digital Transformation of Msmes from Industry 4.0 to Industry 5.0
Bhatt, K., & S, M. K. (2022) · 2022 Fourth International Conference on Emerging Research in Electronics, Computer Science and Technology (ICERECT) · doi:10.1109/icerect56837.2022.10060517 · Cited by 7
“Medium Small-scale enterprises have cost and resource constraints, and they look for industry 4.0 and its corresponding drivers like AI to accelerate their growth [9], [10].”
BackgroundInfluentialA Novel Service Provision Mode for Sustainable Development of the Telecom Industry
Wang, X., Wu, H. J., & Lu, L. (2021) · Sustainability · doi:10.3390/su13095164 · Cited by 6
“Artificial intelligence technology can adjust to new inputs and implement human-like tasks [37,38], and incorporate impromptu thinking as well as empathetic customer service [39,40].”
BackgroundBashir, H., & Zhou, R. (2025) · Telematics and Informatics Reports · doi:10.1016/j.teler.2025.100216 · Cited by 5
Thalmeiner, G., Gáspár, S., & Zéman, Z. (2025) · Journal of Open Innovation Technology Market and Complexity · doi:10.1016/j.joitmc.2025.100633 · Cited by 6
Arrooqi, A. S., & Alruqi, M. M. (2025) · Humanities and Social Sciences Communications · doi:10.1057/s41599-025-05598-x · Cited by 7
“Kitsios and Kamariotou (2021) con fi rmed that the application of AI technology faces challenges in practical applications and a lack of experience in the strategic use of AI.”
Sakib, M. N., Jabber, M. A., Younus, M., Bithee, M. M., Sannyamat, M. M., Saha, A., & Guha, A. (2025) · Future Business Journal · doi:10.1186/s43093-025-00515-9 · Cited by 5
“Furthermore, HRM contributes to enhancing employee well-being and cultivating a positive workplace environment [35, 36] and AI involves the development of software capable of executing human activities [37, 38].”
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“The preprocessed data is later fed into the Deep Learning Model, which utilises specialised neural network structures for parsing and anticipating customer behavioural snapshots identified by Khan, et al. [30] and Kitsios and Kamariotou [31].”
Hoshino, Y., & Hirao, T. (2024) · Applied System Innovation · doi:10.3390/asi7010013 · Cited by 8
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“Namun, teknologi digital telah memberikan UMKM peluang baru untuk menjangkau pelanggan, memungkinkan mereka untuk bersaing dengan perusahaan yang lebih besar (Kitsios & Kamariotou, 2021; Phiri, 2020).”
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How AI Shapes Customer Engagement in Banking: The Roles of Satisfaction and Proactive Personality
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Strategic Management Practices in Chinese Enterprises Under the Influence of Artificial Intelligence
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Leveraging Artificial Intelligence for Knowledge Management A Systematic Literature Analysis
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“In the rapid technological development, technology was created to help all business processes become more effective and efficient [1].”
Digital transformation research trends in Ukraine and the world: meta & bibliometric analysis
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“With the recent emphasis on digital transformation (DX) following the fourth industrial revolution [1], new approaches and changes are taking place via the construction of smart factories.”
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“The new data is given as input and then trained by probabilistic classifying the new data and then the prediction is made from the list of possible classified items [5].”
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“Moreover, the primary challenge for organizations is not merely the adoption of AI technologies but effectively utilizing them to achieve comprehensive digital transformation [1].”
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“Optimal digital technologies like AI implementation requires a clear understanding of related sophisticated technology and fits with overall strategic goals (Kitsios & Kamariotou, 2021).”
Background“Artificial-Intelligence-Driven Management” Supports and Utilizes Smart Homes and Buildings
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“[1, 2, 5-15] However, “ Artificial-Intelligence-Driven Management ” (AIDM) utilizes Plan → Predict → Act (PPA) -compliant data-based decision-making processes that provide AI with a dedicated environment in which it can operate without the humanoid constraints, expenses, and interferences of the…”
BackgroundDIGITAL Analysis in Digital Transformation
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“The phenomenon of increased adoption of digital technology by MSMEs can be seen in the widespread use of digital accounting applications, cashless payment systems, online marketplaces, and social media as a means of marketing and business communication(Kitsios & Kamariotou, 2021).”
Schirmer, M., Fußwinkel, S., Mütze‐Niewöhner, S., Nitsch, V., & von Nitzsch, R. (2026) · Group Decision and Negotiation · doi:10.1007/s10726-026-09966-z · Cited by 4
“Despite those advantages that some AI systems theoretically offer, there are often difficulties related to the practical implementation of such systems (Kitsios and Kamariotou 2021 ).”
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“The ability to gather data, identify patterns, and automate processes that was previously unheard of in businesses is now available to them, and this will eventually improve decision-making and boost operational effectiveness [7].”
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“Through this perspective, several organizations have adopted emerging technologies designed to obtain high performance and competitive advantage [1].”
BackgroundDetermining Online Business Readiness Among Vocational School Students Throughout Banyuwangi
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“Appio et al., (2021); Kitsios and Kamariotou (2021) argue that humanity exists according to three fundamental principles: the natural world, where everything on the Earth's surface exists without human intervention or healing through creation, and the social world, all of which are processes of…”
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“AI and relevant technologies drive sustainable innovation by enabling organizations to enhance sustainability in their processes and operations (Kitsios & Kamariotou, 2021; Nishant et al., 2020).”
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“…of AI with corporate functions opens new avenues for value enhancement through more efficient knowledge management, advanced analytics, and faster decision-making, although challenges remain in implementing expertise frameworks and alignment on strategic direction (Kitsios & Kamariotou, 2021).”
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“For example, businesses are increasingly using artificial intelligence in meeting the diverse needs of consumers [11].”
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“However, its practical implementation and strategic usage pose challenges (Kitsios and Kamariotou, 2021).”
Adoption of Artificial Intelligence Enabling Value Creation in Business
Mitra, A., Seetharaman, A., & Maddulety, K. (2024) · International Conference on Robotics, Automation and Artificial Intelligence (RAAI) · doi:10.1109/raai64504.2024.10949520 · Cited by 4
“While the association between AI and business strategy and as well as automated decision-making (DM) [13], is still evolving, advancements in big data and AI offer opportunities for making superior decisions compared to human capabilities in certain scenarios, while humans retain their critical…”
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“"Digital literacy" generally refers to the "ability to engage with new technologies, become familiar with emerging devices, or incorporate these tools into learning processes" (F Kitsios & Kamariotou, 2021; Ukko, Nasiri, Saunila, & Rantala, 2019).”
Pradit, K., & Piriyasurawong, P. (2024) · 2024 9th International STEM Education Conference (iSTEM-Ed) · doi:10.1109/istem-ed62750.2024.10663150 · Cited by 2
“Artificial intelligence has the potential to influence current and future businesses in terms of business development[1].”
BackgroundHow does artificial intelligence affect the business context? A bibliometric analysis
Campoverde, J. A. C., Coronel-Pangol, K., & Tigre, D. H. (2024) · Edelweiss Applied Science and Technology · doi:10.55214/25768484.v8i4.1048 · Cited by 3
“Businesses use artificial intelligence to enhance strategic decisions, streamline operational processes, tailor customer experiences, and create innovative products [8].”
BackgroundRahmaniar, Fuadi, Khairawati, Isfayani, E., Wahyuddin, Arliansyah, Jamil, A., & Mufid, M. (2023) · AJAD Jurnal Pengabdian kepada Masyarakat · doi:10.59431/ajad.v3i3.219 · Cited by 2
“Literasi Digital “tidak hanya berkisar pada kemampuan menggunakan teknologi baru, belajar menggunakan perangkat baru, atau bahkan menerapkan perangkat dan teknologi tersebut ke dalam proses pembelajaran [1][2].”
BackgroundSetyawati, A., Handayati, P., & Zagladi, A. N. (2023) · International Journal of Management Research and Economics · doi:10.54066/ijmre-itb.v1i4.1014 · Cited by 2
Vidu, C.-M., PINZARU, F. –. M., & Mitan, A. (2022) · Nowoczesne Systemy Zarządzania · doi:10.37055/nsz/147989 · Cited by 4
“Various authors (Calp, 2020; Kitsios, Kamariotou, 2021) have recognized that one of the essential technologies driving digital transformation is represented by artificial intelligence.”
BackgroundTransforming University Academic Management into Data Aggregation of Artificial Intelligence
Zhou, R. (2025) · Creative Education · doi:10.4236/ce.2025.163020 · Cited by 3
Complex problem-solving in enterprises with machine learning solutions
Djordjević, L., Novaković, B., Đurđev, M., Premčevski, V., & Bakator, M. (2024) · Journal of Engineering Management and Competitiveness · doi:10.5937/jemc2401033d · Cited by 2
Łukasik-Stachowiak, K. (2023) · Scientific Papers of Silesian University of Technology. Organization and Management Series · doi:10.29119/1641-3466.2023.175.18 · Cited by 3
Darmada, I. M., Amrita, N. D. A., & Herlambang, P. G. D. (2026) · Studi Ekonomi dan Kebijakan Publik · doi:10.35912/sekp.v5i1.7206 · Cited by 1
“Previous research highlights that information technology adoption in healthcare organizations can enhance operational efficiency and support better financial management by improving information availability and process integration (Kitsios, & Kamariotou, 2021; Alotaibi, & Federico, 2023).”
Islami, R. N., Hamka, H., & Anggraeni, F. S. (2026) · MANAJERIAL DAN BISNIS TANJUNGPINANG · doi:10.52624/y0pem867 · Cited by 1
“…inovasi dan sumber keunggulan kompetitif karena memungkinkan perusahaan menciptakan produk, layanan, dan pengalaman pelanggan Volume 9 No. 1 Tahun 2026 E-ISSN 2655-5921 yang lebih adaptif terhadap perubahan kebutuhan pasar (Dwivedi et al., 2021; Kitsios & Kamariotou, 2021; Vărzaru et al., 2024).”
InfluentialYeasir, A. M., & Uddin, N. (2026) · Online (Weston, Conn.) · doi:10.60087/jklst.vol5.n1.006 · Cited by 1
Sitanggang, T. (2026) · Dhana · doi:10.62872/ghj1w435 · Cited by 1
“…of AI technologies in financial reporting environments have demonstrated that automated accounting systems significantly accelerate reporting cycles while maintaining high levels of data accuracy and consistency (Antwi et al., 2024; Marri, 2025; Kitsios & Kamariotou, 2021; Okekwu et al., 2025).”
InfluentialArtificial Intelligence in Business: A Literature Review from maqasid al-Shariah Perspective’s
Samsuddin, N., & Nordin, N. (2026) · Contrarius Series: Law & Social Justice · doi:10.53955/cslsj.v1i2.135 · Cited by 1
Baihaqi, B. (2026) · Oikonomia : Journal of Management Economics and Accounting · doi:10.61942/oikonomia.v3i2.558 · Cited by 1
“…consistently demonstrate that the integration of AI and big data analytics enhances decision quality, accelerates responsiveness, and improves predictive accuracy across industries (Horbachenko et al., 2025; Rivero, 2025; Chaturvedi et al., 2025; Kitsios & Kamariotou, 2021; Thangamani, 2025).”
Understanding Nigerian Students’ Reactions to AI-Driven Health Advertising on Social Media
Sunday, E., & Nwagbara, U. U. (2026) · Social Science Insights and Applications · doi:10.65773/ssia.2.1.36 · Cited by 1
Xiong, C., Sang, G.-L., & Nah, K. (2026) · Sustainability · doi:10.3390/su18021139 · Cited by 1
Varchenko, V. (2025) · Economic Analysis · doi:10.35774/econa2025.04.202 · Cited by 1
Digital Transformation Strategies for Sustainable Business and Smart Workforce Management
Vulapula, S. R., Pramod Kumar, P., Aleeswari, A., & Suganya, R. (2025) · IEEE Global Conference on Wireless Computing and Networking (GCWCN) · doi:10.1109/gcwcn66157.2025.11448485 · Cited by 1
“The changes in higher education [21] recognized world trends in research, and the agendas of the future were provided through AI-driven business approaches [22] to higher education.”
Comprehensive and comparative analysis of AI in the energy sector
Worthmann, C., & Malik, K. (2025) · AI and Ethics · doi:10.1007/s43681-025-00728-2 · Cited by 2
“From an organizational perspective, it is inferred that for AI to be successful, it is important for the Information Technology strategy to align with the corporate strategy to achieve company-wide acceptance [ 57 ].”
Patjoshi, P. K., Khan, B. M. A., S, M., Inumula, K. M., Sharma, K., & Mittal, P. (2025) · 2025 6th International Conference for Emerging Technology (INCET) · doi:10.1109/incet64471.2025.11140452 · Cited by 1
“Interconnected devices produce constant data streams, enabling companies to streamline supply chain management, advance predictive maintenance, and enhance overall efficiency [6].”
Hofmann, P., Meierhöfer, S., Müller, L., Oberländer, A. M., & Protschky, D. (2025) · Business & Information Systems Engineering · doi:10.1007/s12599-025-00941-7 · Cited by 1
Pawlowski, J. Μ., Kocak, S., Hellwig, L., & Nurhas, I. (2025) · International Journal of Information Systems and Social Change · doi:10.4018/ijissc.374217 · Cited by 1
“AI enables companies to use data-driven decision-making and predictive analytics to make processes more efficient while reducing the susceptibility to errors (Keding, 2021, Kitsios and Kamariotou, 2021).”
InfluentialKnowledge Towards Artificial Intelligence among Physical Therapists Working in Pakistan
Afzal, M. T., Mehreen, F., Ali, N., Aftab, R., Habib, I., & Ahmed, M. R. (2025) · THE THERAPIST (Journal of Therapies & Rehabilitation Sciences) · doi:10.54393/tt.v6i1.245 · Cited by 1
Telecom for Humanity: AI-Driven BSS Platforms for Digital Equity and Accessibility
Kunthu, B. R., & Kandula, N. (2025) · International Journal of Computational and Experimental Science and Engineering · doi:10.22399/ijcesen.4259 · Cited by 1
“…onboarding times, which used to take days, remove human biases that can discriminate against marginalized candidates, and drive the customer acquisition costs significantly lower to allow the delivery of services in economically viable manners to new, untapped markets (Kitsios et al., 2021).”
Management trends and implementation of AI in university management
Peñaloza, J. E. G., Bohórquez, A. F., & Balaguera, P. A. S. (2025) · Data & Metadata · doi:10.56294/dm2025866 · Cited by 1
Artificial Intelligence in Enterprises: A Comparative Analysis of Slovakia and EU Member States
Tóth, T. (2025) · International Scientific Days 2024. "From Field to Finance: Addressing Economic Challenges". Conference Proceedings. May 16 – 17, 2024. Nitra, Slovak Republic · doi:10.15414/2024.9788055228167.429-437 · Cited by 1
“Kitsios and Kamariotou (2021) stated that while the AI technology offers great potential to solve difficulties, challenges remain implicated in practical implementation and lack of expertise in the strategic usage of AI to create business value.”
Domestic Debt Exchange Program Impact on Financial Sector Performance in a Digital Technology Era
Asare, J., Ntiamoah, J., Ampong, G., Arhenful, P., & Nkyi, J. (2024) · International Journal of Economics Finance and Management Sciences · doi:10.11648/j.ijefm.20241206.19 · Cited by 1
Kuncha, R. K., & Sharma, D. (2024) · 2024 IEEE 2nd International Conference on Innovations in High Speed Communication and Signal Processing (IHCSP) · doi:10.1109/ihcsp63227.2024.10960151 · Cited by 1
“RPA is defined as a software tool that can mimic specific operational processes in an organization and handle repetitive work performed by employees [3].”
SÜREKSİZ TEKNOLOJİLERE VE TAMAMLAYICI YENİLİKLERE ÇALIŞANLAR NASIL UYUM SAĞLAR?
Vural, M. F. (2024) · Yönetim Bilimleri Dergisi · doi:10.35408/comuybd.1516756 · Cited by 1
Artificial Intelligence in Enhancing Organisational Performance: A Thematic and Factorial Analysis
Kheterpal, S., Chadha, A., & Kaur, K. (2024) · 2024 5th International Conference on Smart Electronics and Communication (ICOSEC) · doi:10.1109/icosec61587.2024.10722455 · Cited by 1
“Organizations are extensively deploying AI-powered tools across diverse corporate functions, including manufacturing, marketing and sales, human resource management, risk mitigation, data-driven decision and numerous other operational domains[2].”
BackgroundA Review of AI and ML Adoption in Businesses Worldwide
Devadiga, N. B. (2024) · International Journal of Scientific Research in Science and Technology · doi:10.32628/ijsrst24114136 · Cited by 1
Consumer Attitudes Towards AI in Hospitality- A Study on Emerging Applications
Aggarwal, S., Sharma, C., Nigam, V., & Roy, S. (2024) · International Journal For Multidisciplinary Research · doi:10.36948/ijfmr.2024.v06i02.15544 · Cited by 1
Metadata
- Authors
- Kitsios, F., & Kamariotou, M.
- Affiliations
- University of Macedonia (GR)
- Corresponding author
- Kamariotou, Maria
- Venue
- Sustainability
- Publisher
- MDPI AG
- Published
- 2021-02-13
- Volume
- 13
- Issue
- 4
- Pages
- 2025
- ISSN
- 2071-1050 (ISSN-L)
- OpenAlex
- W3130265534
- Cited by
- 360
- References
- 99
- Citations by year
- 2026: 62 · 2025: 98 · 2024: 91 · 2023: 68 · 2022: 28 · 2021: 13
- FWCI
- 17.68
- Type
- journal article
- Language
- en
- Open access
- gold
- doi.org
- Licence
- Locations
- Sustainability (publishedVersion, cc-by)
- RePEc: Research Papers in Economics (acceptedVersion)
- DOAJ (DOAJ: Directory of Open Access Journals) (acceptedVersion)
- Funders
- Hellenic Foundation for Research and Innovation (188)
- Topics
- Physical Sciences › Computer Science › Artificial Intelligence › Artificial Intelligence Applications
- Social Sciences › Business, Management and Accounting › Management Information Systems › Information Technology Governance and Strategy
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Digital Innovation in Industries
- Keywords
- artificial intelligence, business strategy, digital transformation, machine learning, value creation, IT strategy alignment, knowledge management, decision-making, service innovation, AI implementation challenges
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