Impact of Artificial Intelligence Usage

and Technology Competence on

Competitive Advantage with Mediating
Role of Effective Information
Management System
Gao Penglong; Mustapa Fara Diva; Zhao Xue; Zhou Yangyang
Recommended citation:
Penglong, Gao; Diva, Mustapa Fara; Xue, Zhao; Yangyang, Zhou (2024). “Impact of Artificial Intelligence Usage and
Technology Competence on Competitive Advantage with Mediating Role of Effective Information Management
System”. Profesional de la información, v. 33, n. 5, e330502.
https://doi.org/10.3145/epi.2024.ene.0502
Manuscript received on October 12th 2023
Accepted on August 16th 2024

Gao Penglong Mustapa Fara Diva

https://orcid.org/0009-0003-8739-5489 https://orcid.org/0000-0001-6897-8927
Faculty of Environment and Surveying Faculty of Environment and Surveying
Universiti Teknologi Malaysia Universiti Teknologi Malaysia
Skudai, Johor, 81310, Malaysia Skudai, Johor, 81310, Malaysia
Economic and Management School [email protected]
Hebei University of Architecture
Zhang Jiakou, Hebei, 075000, China
[email protected]

Zhao Xue  Zhou Yangyang

https://orcid.org/0000-0002-9801-6590 https://orcid.org/0009-0000-1500-5611
Economic and Management School Faculty of Architecture and Art
Hebei University of Architecture Hebei University of Architecture
Zhang Jiakou, Hebei, 075000, China Zhang Jiakou, Hebei, 075000, China
[email protected] [email protected]

Abstract
Competitive advantage has been considered as the foremost element for the organizational success and this could be
achieved using artificial intelligence (AI) and technological competencies. The current study investigates the impact of
AI usage and technology competencies on the competitive advantage of manufacturing industries in China. The paper
also investigates the mediating role of effective information management system (IMS) among AI usage, technology
competencies and competitive advantage. Data was obtained from a sample comprising employees of manufacturing
companies through questionnaires. The data reliability and association among variables were measured with SPSS-
AMOS. The results exposed that the AI usage and technology competencies have a positive nexus with competitive
advantage and also revealed that the effective IMS significantly mediates among AI usage, technology competencies
and competitive advantage of manufacturing industry in China. The study provides useful insights to the regulators in
establishing regulations towards improving competitive advantage, effective AI usage and technology competencies.
Keywords
AI Usage, Technology Competencies, Competitive Advantage, Effective Information Management System, Manufacturing
Industry.

1. Introduction
Competition has surpassed all boundaries owing to the business growth and rapid technological changes. There are
numerous ways to concur competition in industry but the most reliable is through a secured competitive advantage. A

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 Gao Penglong; Mustapa Fara Diva; Zhao Xue; Zhou Yangyang

firm may achieve a competitive advantage over its competitors by providing high-quality products and services that
give value to customers. As a result of technological advancements, business interactions have taken into account these
important considerations. For instance, AI functions play a critical role in the connection with enterprises including
smart machines that accomplish company tasks (Krakowski et al., 2023). Understanding how a person thinks and
behaves is becoming increasingly vital, whereas corporations should grasp behavioral biases, social behavior, and
restricted rationality. As a result, information flows quickly through technological skills, leaving society exposed to
manipulation of their surroundings. Technological competencies have also boosted AI in firms, altering the company's
direction towards competitive advantage (Farida; Setiawan, 2022; Bu, 2023).
AI is transforming organizations and industries, by influencing business intelligence decisions and knowledge discovery
(Azeem et al., 2021). Long, complicated, process-dependent procedures may be carried out very instantly. Big data sets
may be gathered, analyzed, and executed in less than a minute. In international corporations, real-time language
processing can be used to interpret conversations in many languages. From a geopolitical and economic standpoint, it
is critical to develop and use this technology in a well-studied and responsible manner (Morris et al., 2019; Hagiu;
Wright, 2020). Another factor which is vital is core competence technologies. Customer experiences and digitization
may be eased across a wide range of industries. However, there are significant responsibilities associated with this
potential. While implementing core competence technologies appropriately might open up remarkable possibilities for
handling commodities, it is technically and operationally hard (Barney; Hesterly, 2019; Belyalova; Yem, 2023).
China, referred to as a world factory, is a perfect example of competitive advantage for all firms across the world. The
business model of the Chinese firms, particularly in the manufacturing sector, is preferred around the world (Qiu et al.,
2020). The reason is that China has applied almost every form of technology in every aspect of business, which creates
the difference. With annual GDP growth of over 10% for more than two decades, China had already become world's
third-largest economy in 2008 (Hu et al., 2024). In addition, manufacturing accounts for more than one-third of the
overall GDP and 94.54% of China's export sales (Zameer et al., 2020). Most Fortune 500 businesses have established
manufacturing facilities in China. China's industries are quickly growing and playing a significant role in global
commerce. This is the ultimate competitive advantage of China. This proves how the adoption of technology becomes
the backbone of Chinese success (Hou; Dong, 2022; Tu; Wu, 2021; Alkorta; Mujika, 2022). The country has applied
technology, particularly AI in every aspect. Furthermore, society has provided bright chances to learn the core
competence technologies to support the country (Yongqing; Jieyi, 2023).
The study aimed to address the gaps related to competitive advantage, AI usage, technology competencies along with
the mediating effect of effective information system. The selection of the constructs of the study was made after
identifying these gaps, particularly emphasized in previous studies. For instance, Ristyawan (2020) and Cui et al. (2024)
explored the nexus between AI usage and competitive advantage; the present study added factors like technology
competencies to this framework, and also checked the mediating effect of effective IMS. Similarly, Tong et al. (2022)
and Feng et al. (2020) explored the nexus between technology competencies and competitive advantage. However,
this paper included the factors like AI usage, and checked the mediating effect of IMS. Studies by Abbas (2020) and Tan
and Nasurdin (2011) have investigated the mediating effect of effective IMS in multiple relationships at different times,
hence, the current study also used it as mediator.
The current study is significant as it highlights the importance of AI as well as technology competence to achieve the
competitive advantage in a country like China. The study also contributes to the domain of technology and competitive
advantage, which will offer useful insights to the professionals in designing their polices and regulations.

2. Literature Review
2.1. AI as a Tool for Competitive Advantage
AI has transformed several fields, resulting in a more intellectual and creative society, and businesses switching over to
data-driven decision-making processes. This requires a proper deployment of AI measures and their utilization
(Awamleh; Bustami, 2022). It has also been proposed that AI is one of the strong tools for competitive advantage
(Hossain et al., 2022; Aguilar et al., 2020). It motivates entrepreneurs, strategists, and investors to use AI to generate
new revenue streams and develop competitive advantage tactics (Kemp, 2023). Since AI is all about future, it helps
businesses in an advanced way to have more solid decision-making regarding their present and future competition with
rival companies (Chatterjee et al., 2021).
The incredible pace with which AI is gaining traction in industry forces businesses to compete to make their company
more intelligent. Of several strategies for dealing with market rivalry and market competition, the most reliable one is
a competitive advantage over competitors (Kordon, 2020). Competitive advantage results in creating a difference which
attracts the customers and enables the firm to win the competition. In this context, Cui et al. (2024) checked whether
AI plays any role in the attainment of competitive advantage. The study concluded that there are certain market linked

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 Impact of Artificial Intelligence Usage and Technology Competence on Competitive Advantage with Mediating Role of Effective
Information Management System

conditions in which AI helps firms to have maximum output from it regarding the attainment of competitive advantage.
These conditions should be incorporated in the firm’s activities and strategies. Similarly, Mendoza Valencia et al. (2019)
strongly recommend that firms across the globe should adopt AI to support them in achieving a competitive advantage
in a competitive environment.
Ristyawan (2020), too, explored the effect of AI on competitive advantage. The study focused on a resource-based view,
and collected data from 100 MSMEs of Indonesia and explored it with the help of regression analysis. The results proposed
that the AI is significant towards achieving the competitive advantage. Further, the study also concluded that human
resources are the top priority for firm attention. The adoption of AI would enable the firm to bring betterment in its overall
performance. During this running era, one of the worst disasters faced by the universe was the pandemic which had frozen
almost the entire humanity. Its consequences were worse for businesses due to the lockdown. In the context of COVID-
19, the association between AI and competitive advantage was explored by Awamleh and Bustami (2022). Data from 224
individuals from Jordan was selected as a sample. The collected sample was analyzed with the help of the Smart PLS
analysis approach. The results of the study proposed that the association between AI and competitive advantage remained
alive even in pandemic. Further, the study also concluded that the adoption of IT capabilities results in mediating this
relationship. Thus, the first hypothesis of this study was derived from this argument.
H1: AI usage significantly influences the competitive advantage.
2.2. Technology Competencies and Competitive Advantage
The world has witnessed rapid changes, innovations, and discoveries with the passage of time, owing to the
technological advancements and technology competencies (Dymitrowski; Mielcarek, 2021). Information technology is
the medium that integrates all types of computers, electronic equipment, computer software, automation
technologies, and communication programs and equipment. The adoption of IT, therefore, will improve the firms to
capitalize on opportunities (RodrÍGuez Pomeda et al., 2001). However, adoption is not enough with the rapid changes:
there is a need to learn about those changes and have the technology competence. Such competencies would also
result in a better analysis of the competitive market and to ease the decision-making process regarding concurring the
competition vide competitive advantage.
Core technical competency is a set of knowledge sets that separate one organization from another in terms of
competitive advantage (Putra; Darmawan, 2022). When a business's core technical competency is defined as the
unique knowledge required to identify and solve problems, it may frequently serve as the most fundamental sustainable
competitive advantage of a given enterprise, allowing it to produce more new goods to fulfill varied market demands
(Stelzer; Brecht, 2011). In this context, the association between technology competencies and competitive advantage
was explored by Tong et al. (2022). A data of 379 instances was selected as a sample. The collected sample was analyzed
with the help of the SEM analysis approach. The results of the study proposed the association between technology
competencies and competitive advantage. Further, it was found that the core technology competencies result in better
data analysis with the usage of technology which helps in better decision-making in competitive strategies. Similarly,
Feng et al. (2020) also explored the association between core technology competencies and competitive advantage
particularly in China. The study focused on the high-tech industry, and its outcomes proposed that there is an
association between core technology competencies and competitive advantage. The study also proposed strategies for
sustaining the competitiveness of high-tech industries, therefore increasing firms' competitive edge and attaining
sustainable management. Moreover, if high-tech sectors continue to innovate and do scientific research, they will keep
their competitive advantages. The adoption of modern-era technologies may be easier but to have the core
competence in it is difficult and a continuous process as well as a challenge for the current business industry. To address
such challenges of social as well as technological in the context of competitive advantage Haseeb et al. (2019)
conducted an investigation, which addressed the concept of business performance on a sample of 500 SMEs in
Malaysia. The results of the study proposed that core technology competencies are an active player for competitive
advantage. Further, the firms should pay special focus towards the core technology competence as it will help them in
better and quick decision-making in complex situations. The second hypothesis of the study was derived based on these
arguments.
H2: Technology competencies significantly influence the competitive advantage.
2.3. Effective Information Management vis-à-vis AI usage and Competitive Advantage
There is no doubt that AI has brought revolution in every aspect of life. Not only social life but it is not less than a
blessing for the business world. One of its prime benefits is the streamlining, collecting, disseminating and summarizing
the information through AI operations. Although AI is beneficial, but it does not operate automatically, and needs input
for a better output. It is therefore dependable on many factors like AI usage for competitive advantage. However,
despite the implementation of AI, the firms often do not succeed in achieving the required outcome in the form of
competitive advantage. This requires to explore further such factors that affect this implementation of AI. One such

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 Gao Penglong; Mustapa Fara Diva; Zhao Xue; Zhou Yangyang

factor commonly used in previous literature is information management, since the information flow plays a keen role
in creating a competitive advantage through AI.
It is well known that with the passage of time effective management of information results in the betterment of AI
output. Such output helps the firms to have solid decision-making in the process of competitive advantage (Garrido-
Moreno et al., 2014). Thus, effective information management acts as a mediator in this relationship. Literature also
shows that effective information management is a vital mediator. For instance, Abbas (2020) explored whether the
information i.e., knowledge management mediates in the nexus between total quality management and corporate
sustainability. The study used a sample of 612 instances collected through a simple random sampling technique. The
results proposed that total quality management significantly influences the corporate sustainability and information.
Likewise, Tan and Nasurdin (2011) explored whether the effective information mediates in the nexus between HRM
practices and organizational innovation. The study used a sample of 171 large Malaysian firms to collect data. The
results proposed that HRM practices significantly influence organizational innovation and effective information i.e.,
knowledge management mediates in this relationship. Thus, the third hypothesis was derived as under.
H3: Effective information management significantly mediates the nexus between AI usage and competitive advantage.
2.4. Effective Information Management vis-à-vis Technology Competencies and Competitive Advantage
Technology has affected humans either positively or negatively in all aspects of life. The business community particularly
has benefitted in the form of communication and information dissemination through technology. Technology has
affected every business vertical including production, supply chain, marketing, finance or management. More
technological competence leads to a positive effect in achieving a competitive advantage. However, in some cases,
despite having the core technological competencies, firms fail to secure competitive advantage, owing to many reasons
such as ineffective information management. Studies have proposed that effective information management leads to
better firm's performance (Ayoub et al., 2017). Effective information management is also a good sign of competitive
advantage, since it acts as a vital mediator in a nexus between constructs. To this regard, Wu and Hu (2018) explored
whether the information management design mediates in the nexus between open innovation-based knowledge
management (KM) implementation for effectively executing the support. The study used a sample of 1500 firms
collected through a simple random sampling technique. The results proposed that open innovation-based KM
implementation for effectively executing the support and information i.e., KM design mediates in this relationship.
Similarly, AlMulhim (2023) explored whether the information management practices mediates in in the nexus between
administrative management and information technology and e-government success. The study used a sample of 163
public sector participants collected through a simple random sampling technique. The results proposed that
administrative management and information technology significantly influence the e-government success and
information i.e., knowledge management practices mediates in this relationship. This led to framing the fourth
hypothesis of the study.
H4: Effective information management significantly mediates the nexus between technology competencies and
competitive advantage.
The above-mentioned arguments and excerpts from studies hint at a positive association of AI usage and technology
competences with competitive advantage while the effective IMS significantly mediates the association among these
extracts, viz., AI usage, technology competences and competitive advantage. Figure 1 presents the research framework
of the study.

Artificial Intelligence
Usage

Effective Information Competitive

Management System Advantages

Technology
Competences

Figure 1: Research Framework.

3. Research Methodology
The study investigates the impact of AI usage and technology competencies on the competitive advantage and
also investigates the mediating role of effective information management system (IMS) among these constructs

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 Impact of Artificial Intelligence Usage and Technology Competence on Competitive Advantage with Mediating Role of Effective
Information Management System

viz., AI usage, technology competencies and competitive advantage of manufacturing industr ies in China. Data
was gathered from employees of manufacturing unit in China through survey questionnaires, which measured the
variables of the study. The questionnaire items were extracted from past literature as depicted in Table 1, Table
2, Table 3 and Table 4.
For instance, Table 1 mentions the six questions on AI usage (AIU) borrowed from Pan et al. (2022).
Table 1: Artificial Intelligence Usage Items.
Items Statements Sources
AIU1 AI helps to attract candidates
AIU2 AI helps to communicate with candidates
AIU3 AI helps to evaluate candidates
(Pan et al., 2022)
AIU4 Using AI technology improves our recruitment performance.
AIU5 Using AI technology enhances our recruitment effectiveness.
AIU6 Using AI technology increases our recruitment ability.

Table 2 exhibits five questions to measure technology competences (TC), independent variable of the study, extracted
from Jean et al. (2010).
Table 2: Technology Competences Items.
Items Statements Sources
TC1 Our company uses the most advanced IT.
TC2 Our IT is always state-of-the-art technology.
TC3 Relative to our competitors, our IT is more advanced. (Jean et al., 2010)
TC4 My company is always first to use new IT in our industry.
TC5 In our industry my company is regarded as an IT leader.

Table 3 contains four questions to measure Effective IMS (EIMS), taken as mediating variable in this study, extracted
from Żywiołek and Schiavone (2021).
Table 3: Effective Information Management System Items.
Items Statements Sources
EIMS1 IMS provides the access to information and knowledge.
EIMS2 IMS provides the usefulness of information and knowledge.
(Żywiołek; Schiavone, 2021)
EIMS3 IMS maintains the level of knowledge.
EIMS4 IMS has the ability to use big data

Finally, the competitive advantage, dependent variable of the study, was measured with six questions, extracted from
Singh et al. (2019). These measurements are given in Table 4.
Table 4: Competitive Advantage Items.
Items Statements Sources
CA1 My firms’ products are better than its competitors.
CA2 My firms’ R&D capabilities are better than its competitors.
CA3 My firms’ managerial capabilities are better than its competitors.
(Singh et al., 2019)
CA4 My firms’ profitability is better than its competitors.
CA5 My firms’ image is better than its competitors.
CA6 My firms’ competitive advantage is better than its competitors.

The sample of the study comprised 290 employees of manufacturing companies in China, who were the respondents of the
questionnaire. A total of 511 employees were distributed the survey forms through personal visits and emails. but only 290 valid
surveys were received after one month. These valid surveys showed an approximate 56 percent response rate. In addition, the
researchers also used the SPSS-AMOS to examine the data reliability and association among variables, which are effective tools
to deal with the primary data and give best outcomes even when complex models are used (Hair et al., 2014).
All question items were checked using composite reliability (CR), whose values must be larger than 0.70; while factor
loadings were used to measure average variance extracted (AVE), whose values must be greater than 0.50 (Hair et al.,
2017). Finally, MSV and ASV were also examined, with both values being lower than AVE values. The variable correlation
was checked using Fornell Larcker, whose values exposed the correlation among variable itself must be larger than the
values that exposed the correlation with other variables (Hair et al., 2017). In addition, it checks the structural model
using p-values and t-values and p-values must be less than 0.05 and t-values should be larger than 1.96 for the
significant association among variables (Hair Jr et al., 2020).

4. Findings and Results

The convergent validity of all the items showed correlation when it was examined using CR. The values exceeded 0.70
while factor loadings were also examined to ensure AVE values were greater than 0.50. Finally, MSV and ASV were
examined and both values were lower than AVE values. These values exposed a valid convergent validity. Table 5 shows
these outcomes.

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 Gao Penglong; Mustapa Fara Diva; Zhao Xue; Zhou Yangyang

Table 5: Convergent Validity.

Constructs Items Loadings CR AVE MSV ASV
AIU1 <--- AIU 0.998
AIU2 <--- AIU 0.694
AIU3 <--- AIU 0.982
AI Usage 0.897 0.696 0.588 0.417
AIU4 <--- AIU 0.739
AIU5 <--- AIU 0.686
AIU6 <--- AIU 0.993
TC1 <--- TC 0.807
TC2 <--- TC 0.991
Technology Competences TC3 <--- TC 0.504 0.943 0.741 0.063 0.052
TC4 <--- TC 0.624
TC5 <--- TC 0.565
EIMS1 <--- EIMS 0.999
EIMS2 <--- EIMS 0.627
Effective IMS 0.835 0.519 0.488 0.421
EIMS3 <--- EIMS 0.638
EIMS4 <--- EIMS 0.993
CA1 <--- CA 0.516
CA2 <--- CA 0.675
CA3 <--- CA 0.866
Competitive Advantage 0.894 0.591 0.213 0.149
CA4 <--- CA 0.802
CA5 <--- CA 0.853
CA6 <--- CA 0.838

The discriminant validity check was carried out using Fornell Larcker method, which showed a correlation among variables
and values. This exposed the correlation among variables which was larger than the values that exposed the correlation with
other variables. This proved that values carried a valid discriminant validity. Table 6 shows these outcomes.
Table 6: Discriminant Validity.
EIMS AIU TC CA
EIMS 0.734
AIU 0.247 0.761
TC 0.394 0.250 0.721
CA 0.450 0.181 0.461 0.769

Finally, the study examined the model good fitness that is also an essential part of the measurement model assessment.
Both TLI and CFI were examined which showed values larger than 0.90. In addition, RMSEA test showed less than 0.05
values. These figures confirmed that the model was good fit. Table 7 presents these outcomes.
Table 7: Model Good Fitness.
Selected Indices Result Acceptable level of fit
TLI 0.906 TLI > 0.90
CFI 0.908 CFI > 0.90
RMSEA 0.003 RMSEA < 0.05 good; 0.05 to 0.10 acceptable

Figure 2: Measurement Assessment Model.

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 Impact of Artificial Intelligence Usage and Technology Competence on Competitive Advantage with Mediating Role of Effective
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Figure 2 depicts the direct path of the measurement assessment model, exposing the direct nexus among variables.
The results exposed that the AI usage and technology competencies have a positive nexus with competitive advantage
of manufacturing industry in China and thus H1 and H2 were accepted. Table 8 exhibits these results.
Table 8: Direct Path Analysis.
Relationships Beta S.E. C.R. P
Effective Information Management System <--- Technology Competences 0.884 0.032 27.625 0.000
Effective Information Management System <--- Artificial Intelligence Usage 0.026 0.003 8.667` 0.000
Competitive Advantage <--- Technology Competences 0.257 0.100 2.570 0.021
Competitive Advantage <--- Artificial Intelligence Usage 0.067 0.023 2.913 0.012
Competitive Advantage <--- Effective Information Management System 0.222 0.085 2.601 0.046

Likewise, Figure 2 also exposed the indirect path showing the indirect nexus among the variables. These results reveal
that effective IMS significantly mediates among AI usage, technology competencies and competitive advantage of
manufacturing industry in China and thus H3 and H4 were accepted. Table 9 and Figure 3 show these results.
Table 9: Indirect Path Analysis.
Artificial Intelligence Usage Technology Competences Effective Information Management System
Effective Information Management System 0.000 0.000 0.000
Competitive Advantage 0.005 0.177 0.000

Figure 3: Structural Assessment Model.

5. Discussion
Several companies in the manufacturing sector in China have adopted AI to integrate business processes, change the
nature of IMS, in order to achieve a strong competitive advantage in the context of China’s growing market. This study
focused on the interaction between AI usage, technology competencies and organizational IMS to assess their combined
effect on competitive advantage. More specifically, the study showed that functional IMS had a conclusive intermediate
position in this process, thus, enabling and explaining how technological development, based on AI, contributed to the
improved competitive advantage. Due to China’s focus on the advancement in technology, studies like Arenal et al. (2020)
find that AI has been adopted across all sectors and become one of the world leaders in this sphere.
The study found out that AI was being integrated into enterprises for improving their IMS area of organizing the
accumulation, treatment, storing, and further distribution of information. Automated technologies including machine
learning and Neuro-linguistic programming were being employed in the information management processes which, when
implemented, expedited the management of information (Tyagi et al., 2020). For instance, Ma and Sun (2020) believed
that machine learning can well anticipate market trends and consumers’ behavior, thus helping business entities to make
sound decisions rapidly. This is why any IMS scheme must enhance the organizational decision making process as a key
component that underpins competitiveness. In addition, the study finds that enhancement of technology competences in
organizations is critical in achieving the application of AI within IMS. This is why technology competences mean the ability,
know-how, and capital needed to harness the AI technologies properly. In China, emphasis is placed to develop such
competences through investment in education, training and collaboration with the tech firms (He et al., 2019). This
indicates that companies that boast of higher level technology competences enable the right use of the new IMS through
AI. Such integration according to Arenal et al. (2020), also improves on the effectiveness of managing information and
does create the basis for creating new products and services that can meet the customer needs
The mediating role of effective IMS is also depicted as how it turns technology and AI competences into business
advantages. Thus, it is concluded that efficient IMS serves a mediator link where the opportunities arising from AI and
competences in the technology field are unveiled. Overall, an IMS results in improving the information processing

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 Gao Penglong; Mustapa Fara Diva; Zhao Xue; Zhou Yangyang

capacity of an organization and ensuring that proper and timely data reaches the decision makers. This agility is
especially relevant to China’s fast-improving business circumstance that necessitates prompt responses to dynamic
conditions to drown competitors. Moreover, Rajagopal et al. (2022) finds, through AI integration into IMS, the
organizations create the culture of intelligent data usage within the companies. The application of proper data mining
techniques of data analytics is gradually gaining ground in china as companies start to realize data as an essential
strategic resource (Yu et al., 2022). IMS that is fueled through AI allows businesses to make real use of data in volume
which can be easily analyzed and put to strategic use (Wamba-Taguimdje et al., 2020). The benefit of this analytical
approach is that any company can cut costs, find new business areas to develop, and enhance the delivery of products
and services to clients.

6. Conclusion
The study concludes that organizations that implement a qualitatively performed IMS have a more significant opportunity
to gain sustainable competitive advantage in the market. The specifics of how AI and technology competences affects
competitive advantage through the management of IMS are also seen in the improvement of CRM. AI technologies help
to gather and evaluate the information about customers to predict their needs and wants to a greater extent (Haleem et
al., 2022). This information is very useful to establish a marketing plan as well as enhancing the ways of communicating
with the clients. Thus, proper IMS allows to provide accurate storage and usage of such insights thus bringing more relevant
and effective CRM strategies. In Chinese market shares which is highly competitive most of the time clients are very loyal
hence value that added to a firm can greatly enhance it from the rest (Balci et al., 2019). However, utilized in managing
IMS, Venkatesh et al. (2024) points that AI is identified to support SCM in the present study.
Based on the characteristics explained above, the integration of AI into IMS can enhance the reliability of the supply
chain by giving the accurate visibility status of inventory and customer demand and the supplier’s performance. Such
real-time data helps firms to apply proper strategies in advance, and cut unnecessary expenses to boost operational
performance. As demonstrated by China’s manufacturing industry, in which supply chain management is a main focus,
the incorporation of AI into IMS is quite impactful. The findings of this study are therefore very challenging to businesses
and policy makers in China. Leveraging AI and creating technology competences should be critical to firms so as to
improve their IMS. This way they can gain a competitive edge through enhanced decision making, operational
effectiveness and customer satisfaction. In this regard, policymakers should ensure funding in the areas of education
and training so as to enhance the development of the required competences for such a technological change.
As for practitioners, the study implies that the deployment of AI technologies into their IMSs must be done in a manner
that makes the systems optimally mediate their relations with AI and competitive advantage. In general, this research
outlines general guidelines towards the use of AI and technology competences to foster better business performance
in China’s competitive economy. The study provides guidelines to the regulators as well in establishing regulations
related to improve the competitive advantage using effective AI usage and technology competencies.
The study faced several limitations that need to be addressed in future studies. First, the scope of the research was mainly
confined to only the Chinese businesses, and therefore the results and conclusions cannot be applied to other geographic
locations that might have different levels of technological, economical, and cultural development. Second, this research
was based on the available literature and data which might not capture the dynamic view on the IMS integrated AI
technologies due to their recent emergence. Third, this type of study was also cross-sectional, which limited the
possibilities of observing the long-term effects and tendencies as well. Finally, the assessment of technology competences
and appropriate IMS may be further different among various industries and, therefore, destabilize the outcomes. The
research does not capture other variables that could affect the interconnection between the implementation of AI and
IMS, as well as enhanced competitive advantage. Further studies should overcome these limitations with the help of using
longitudinal data and extending the focus of the research into the different geographical and industrial areas.
6.1. Acknowledgements:
Fundamental business expense of scientific research in Hebei province universities: Dynamic coupling optimization
research of construction project schedule and cost based on recurrent neural network (2024QNJS07).

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