AI and Digitalization in Manufacturing: Impacts on Enterprise Operational Performance
This study examines the impact of artificial intelligence (AI) and digitalization on the operational performance of manufacturing enterprises, with a focus on the Chinese automotive tire industry. Using a mixed-methods approach, we analyzed financial reports, conducted executive interviews, and appl...
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| Format: | Article |
| Language: | English English |
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INTI International University
2025
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| Subjects: | |
| Online Access: | http://eprints.intimal.edu.my/2181/ http://eprints.intimal.edu.my/2181/1/ij2025_33.pdf http://eprints.intimal.edu.my/2181/2/730 |
| _version_ | 1848766986416291840 |
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| author | Bin, Li Wai Yie, Leong |
| author_facet | Bin, Li Wai Yie, Leong |
| author_sort | Bin, Li |
| building | INTI Institutional Repository |
| collection | Online Access |
| description | This study examines the impact of artificial intelligence (AI) and digitalization on the operational performance of manufacturing enterprises, with a focus on the Chinese automotive tire industry. Using a mixed-methods approach, we analyzed financial reports, conducted executive interviews, and applied structural equation modeling to data from three leading enterprises from 2022 to 2024. The results show that enterprises with higher levels of AI and digitalization—such as Enterprise A with a 22.3% annual growth in digital investment—achieved significant improvements in operational performance. Specifically, each unit increase in digitalization level correlated with an 8% rise in Return on Assets (ROA). Enhanced digitalization also positively affected production and R&D performance, reducing R&D cycles by 22.8% annually and cutting per-project costs by 27.1%. These findings underscore the critical role of AI and digitalization in driving innovation and operational efficiency in manufacturing. |
| first_indexed | 2025-11-14T11:59:51Z |
| format | Article |
| id | intimal-2181 |
| institution | INTI International University |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T11:59:51Z |
| publishDate | 2025 |
| publisher | INTI International University |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | intimal-21812025-09-21T07:18:14Z http://eprints.intimal.edu.my/2181/ AI and Digitalization in Manufacturing: Impacts on Enterprise Operational Performance Bin, Li Wai Yie, Leong HD Industries. Land use. Labor QA75 Electronic computers. Computer science T Technology (General) This study examines the impact of artificial intelligence (AI) and digitalization on the operational performance of manufacturing enterprises, with a focus on the Chinese automotive tire industry. Using a mixed-methods approach, we analyzed financial reports, conducted executive interviews, and applied structural equation modeling to data from three leading enterprises from 2022 to 2024. The results show that enterprises with higher levels of AI and digitalization—such as Enterprise A with a 22.3% annual growth in digital investment—achieved significant improvements in operational performance. Specifically, each unit increase in digitalization level correlated with an 8% rise in Return on Assets (ROA). Enhanced digitalization also positively affected production and R&D performance, reducing R&D cycles by 22.8% annually and cutting per-project costs by 27.1%. These findings underscore the critical role of AI and digitalization in driving innovation and operational efficiency in manufacturing. INTI International University 2025-09 Article PeerReviewed text en cc_by_4 http://eprints.intimal.edu.my/2181/1/ij2025_33.pdf text en cc_by_4 http://eprints.intimal.edu.my/2181/2/730 Bin, Li and Wai Yie, Leong (2025) AI and Digitalization in Manufacturing: Impacts on Enterprise Operational Performance. INTI JOURNAL, 2025 (33). pp. 1-12. ISSN e2600-7320 https://intijournal.intimal.edu.my |
| spellingShingle | HD Industries. Land use. Labor QA75 Electronic computers. Computer science T Technology (General) Bin, Li Wai Yie, Leong AI and Digitalization in Manufacturing: Impacts on Enterprise Operational Performance |
| title | AI and Digitalization in Manufacturing: Impacts on Enterprise Operational Performance |
| title_full | AI and Digitalization in Manufacturing: Impacts on Enterprise Operational Performance |
| title_fullStr | AI and Digitalization in Manufacturing: Impacts on Enterprise Operational Performance |
| title_full_unstemmed | AI and Digitalization in Manufacturing: Impacts on Enterprise Operational Performance |
| title_short | AI and Digitalization in Manufacturing: Impacts on Enterprise Operational Performance |
| title_sort | ai and digitalization in manufacturing: impacts on enterprise operational performance |
| topic | HD Industries. Land use. Labor QA75 Electronic computers. Computer science T Technology (General) |
| url | http://eprints.intimal.edu.my/2181/ http://eprints.intimal.edu.my/2181/ http://eprints.intimal.edu.my/2181/1/ij2025_33.pdf http://eprints.intimal.edu.my/2181/2/730 |