Effectiveness in the furniture industry: artificial intelligence, big data and sustainable design

Abstract

Purpose: This research aims to investigate the interaction between artificial intelligence (AI) capability, big data capabilities, sustainability design and organizational effectiveness in the context of the furniture industry. It aims to explore how investments in AI and big data technologies can spur sustainability-focused innovation and ultimately increase corporate performance. Design/methodology/approach: Based on data collected from businesses operating in the furniture industry, this research uses a quantitative approach to analyze the relationships between independent variables (AI capability and big data features), mediating variable (sustainability design) and dependent variable (organizational effectiveness). The structural equation modeling (SEM) technique was used to test the proposed theoretical model and hypotheses. The SmartPLS program was used for analysis. Findings: Analysis results show a significant positive relationship between AI capability, big data capabilities, sustainability design and organizational effectiveness in the furniture industry. Moreover, sustainability design demonstrates its important role in translating technological advances into tangible performance results by mediating the relationship between AI capability, big data capabilities and organizational effectiveness. Research limitations/implications: Although this research contributes valuable insights, it also has limitations. It would not be appropriate to make a general assessment of the generalizability of the findings due to the focus on the furniture industry and the fact that the data of the research were collected from furniture-producing companies in Istanbul. Future research could explore additional industries and incorporate qualitative methods to provide a deeper understanding of the underlying mechanisms driving the observed relationships. Practical implications: The findings offer valuable insights to industry practitioners seeking to leverage the potential of AI and big data technologies to increase sustainable organizational effectiveness. Practical implications include strategic recommendations for integrating sustainability principles into organizational strategies, leveraging data-driven decision-making processes and encouraging innovation through technological investments. Originality/value: The originality of this research lies in its comprehensive examination of the intertwined dynamics between AI capability, big data capabilities, sustainability design and organizational effectiveness, especially in the context of the furniture industry. By combining knowledge from multiple disciplines, this research offers a new perspective on the strategic implications of technological innovation for sustainable business practices.