The impact of artificial intelligence capability, organisational creativity and knowledge sharing on organisational performance: experience from the South Asian IT sector

Purpose Organisations often struggle to fully capitalise on their artificial intelligence (AI) investments. AI capability, viewed as the effective integration of complementary resources, is crucial to unlocking AI’s potential. However, empirical research remains limited in examining how AI capability enhances organisational performance via organisational creativity. Moreover, the findings of the role of knowledge sharing in this relationship are inconsistent. Existing studies tend to focus on dyadic relationships, lacking broader industry-level, particularly South Asian IT sector, insights. This study, therefore, aims to investigate the simultaneous influence of AI capability, organisational creativity and knowledge sharing on organisational performance in the South Asian IT sector, with creativity as a mediator and knowledge sharing as a moderator. Design/methodology/approach This study used an explanatory, quantitative research design with a survey method. Data was collected from 292 IT sector employees based in Sri Lanka who serve both locally and globally. Partial least squares structural equation modelling analysis using Smart-PLS version 4.1.0.6 was used for the analysis. Findings The findings revealed that AI capability significantly drives organisational performance directly as well as through organisational creativity. Interestingly, knowledge-sharing competency did not significantly moderate the relationship between AI capability and organisational creativity. Originality/value This study offers two contributions. First, it presents a holistic understanding of the combined role of AI capability, organisational creativity and knowledge sharing in enhancing organisational performance. This theoretical contribution elucidates the complex interrelationships among these constructs. Second, the study focuses on the South Asian IT sector – an underexplored yet economically significant context – thereby extending contextual knowledge and laying the foundation for future research. As a pioneering investigation in this region, the findings provide valuable insights for managers in assessing resource readiness and identifying areas requiring further development.