Improving Project Performance through AI Adoption: The Moderating Role of Organizational and Managerial Capabilities

Riaz  Ahmed; Haris  Shamraiz; Qurat-ul-Ain  Mahmood; Aurangzeb  Khan

doi:10.63056/academia.5.3(s7).2026.2078

Authors

Riaz Ahmed Professor & Head of Department, Department of Project Management and Supply Chain Management, Bahria Business School, Bahria University, Islamabad, Pakistan Author
Haris Shamraiz FPGA Design Engineer, Aerospace Science & Technology Park, Islamabad, Pakistan Author
Qurat-ul-Ain Mahmood Professor of Practice, Department of Project Management and Supply Chain Management, Bahria Business School, Bahria University, Islamabad, Pakistan & Deputy Director, Benazir Income Support Program, Islamabad, Pakistan Author
Aurangzeb Khan Professor, Department of Project Management and Supply Chain Management, Bahria Business School, Bahria University, Islamabad, Pakistan Author

DOI:

https://doi.org/10.63056/academia.5.3(s7).2026.2078

Keywords:

Artificial Intelligence, Project Performance, Managerial Capability, Organizational Capability, Technical Capability Managerial Support, Information Technology

Abstract

This study examines the relationship between Artificial Intelligence and project Performance. Artificial Intelligence (AI) adoption has become increasingly prevalent in organizations, offering the potential to enhance Project performance. However, the impact of AI adoption on project performance is not uniform and can be influenced by several contextual factors, including organizational capability and managerial capability. This study aims to investigate the relationship between AI adoption and Project Performance, while also examining the moderating roles of organizational capability and managerial capability. The study makes use of an integrative model that blends organizational and environmental variables with AI innovation features. The study explores the direct influences of compatibility, organizational capability, managerial support and technical capability on AI adoption and how it enhances project performance. Furthermore, the moderating effects of organizational capability and managerial capability on the relationship between AI adoption and project performance are examined. The findings suggest that project performance is positively associated with AI adoption, indicating that organizations adopting AI technologies may experience improvements in project outcomes. The study also reveals that organizational capability plays a moderating role in the relationship between AI adoption and project performance. Organizations with strong organizational capabilities, including managerial and technical resources, are more likely to effectively implement AI and achieve higher project performance. Managers who possess the skills to inspire and guide employees are more likely to drive successful AI adoption and subsequently enhance project performance. The findings emphasize the importance of managerial support and technical capabilities in facilitating AI adoption and its impact on project performance.