AI Based Decision Making: Combining Strategies to Improve Operational Performance

Abdulrahman Al-Surmi, Mahdi Bashiri, Ioannis Koliousis

    Research output: Contribution to journalArticlepeer-review

    81 Citations (Scopus)
    385 Downloads (Pure)

    Abstract

    This study investigates the strategic alignment between marketing and information technology (IT) strategies and provides production and operations decision makers a model for improving operational performance. Based on a comprehensive literature review, the combined strategies were used to develop a novel decision-making framework. The hypothesised relationships of an SEM model are validated with data collected from 242 managers from various industries. An artificial intelligence (AI)–based method is developed using artificial neural networks (ANN) feeding into a decision-making framework which explores the optimality of the combined strategies. The results indicate that (a) IT strategy is positively mediated by marketing strategy on performance and (b) the organisational structure moderates the mediation of marketing strategy on performance. The analysis confirms that the extracted strategies based on the proposed framework have superior performance compared to existing strategies. This paper contributes to the literature by conceptualising and empirically testing the mediation role of marketing strategy on IT strategy, performance and operational decision-making. The use of a novel three-phase decision-making framework which uses AI processes improves operational efficiency, increases insights and enhances the decision accuracy of complex problems at the strategic
    level in industries such as manufacturing. It could help operations executives to apply effective decisions
    Original languageEnglish
    Pages (from-to)4464-4486
    Number of pages23
    JournalInternational Journal of Production Research
    Volume60
    Issue number14
    Early online date30 Aug 2021
    DOIs
    Publication statusPublished - 18 Jul 2022

    Bibliographical note

    Publisher Copyright:
    © 2021 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

    Funding

    FundersFunder number
    Fundação para a Ciência e a TecnologiaPTDC/CCI-INF/6762/2020

      Keywords

      • AI based decision making
      • SEM
      • neural network
      • operational strategies
      • optimal strategy selection

      ASJC Scopus subject areas

      • Strategy and Management
      • Management Science and Operations Research
      • Industrial and Manufacturing Engineering

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