AI’s Operational Capabilities in Fashion Retail Distribution: Navigating Organizational Agility, Creativity, and Innovative Culture for Market and Operational Performance
Abstract
This study explores the role of Artificial Intelligence (AI) operational capabilities in transforming fashion retail distribution by enhancing organizational agility, creativity, and performance. Grounded in Dynamic Capabilities Theory, it examines how AI's key operational capabilities—information accessibility, operation flexibility, data integrability, and service reliability—contribute to organizational agility and creativity, ultimately driving market and operational performance. Additionally, the moderating role of an innovative organizational culture in shaping these relationships is investigated. Using data collected via an online survey from 318 U.S.-based fashion retail distribution employees, this study employs PLS-SEM. Results reveal that AI operational capabilities significantly enhance organizational agility, with select capabilities also boosting organizational creativity. Both agility and creativity improve market and operational performance, while innovative organizational culture amplifies agility's market impact but moderates creativity's influence. These findings offer strategic insights for fashion retailers, emphasizing targeted AI investments to foster competitive advantage in a dynamic market landscape.
Keywords: AI capabilities, organizational creativity, market performance, innovative culture, Retail Distribution
How to Cite:
Swazan, I. & Youn, S., (2025) “AI’s Operational Capabilities in Fashion Retail Distribution: Navigating Organizational Agility, Creativity, and Innovative Culture for Market and Operational Performance”, International Textile and Apparel Association Annual Conference Proceedings 81(1). doi: https://doi.org/10.31274/itaa.18791
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