The Impact of Artificial Intelligence Capabilities on Organisational Performance: The Mediating Role of Organisational Excellence in the UAE Aviation Sector

Abstract

This study formulates and empirically models a research framework examining the impact of Artificial Intelligence Capabilities on Organisational Performance through the mediating role of Organisational Excellence in the UAE aviation sector. Drawing on the Resource-Based View, AI Capabilities are conceptualised as strategic organisational resources that combine technological infrastructure, data assets, human expertise, and organisational routines. The study argues that AI Capabilities do not generate performance outcomes in isolation; rather, their value is partly transmitted through excellence-oriented organisational practices that strengthen process discipline, strategic alignment, innovation, service quality, and continuous improvement. A quantitative research design was adopted, and data were collected from 318 mid-to-senior level professionals working across airlines, airport operators, regulatory bodies, and aviation service providers in the UAE. Partial Least Squares Structural Equation Modelling was used to assess the measurement model and structural model. The results confirmed satisfactory indicator reliability, internal consistency reliability, convergent validity, and discriminant validity. The structural model showed that AI Capabilities have a significant positive effect on Organisational Excellence and Organisational Performance. Organisational Excellence also had a significant positive effect on Organisational Performance. Furthermore, the mediation analysis confirmed that Organisational Excellence partially mediates the relationship between AI Capabilities and Organisational Performance, with 41.0% of the total effect transmitted through the mediating pathway. The findings indicate that AI investments in the UAE aviation sector are more likely to generate sustainable performance outcomes when they are embedded within strong organisational excellence systems. The study contributes to theory by integrating AI capability, organisational excellence, and performance into a single empirically tested framework. It also contributes to practice by providing aviation leaders with a validated model for aligning AI initiatives with excellence-driven management practices and measurable organisational outcomes.