Knowledge Economy Studies

From Digital Leadership and AI Usage to Relative Firm Performance: The Mediating Role of Business Model Innovation in Iranian Knowledge-Based Firms

Document Type : Original Article

Authors

Mohammad Amin Zandi 1
Mohammad Ehsan Zandi 2
Mostafa Mansouri 3

1 Assistant Professor, Department of Economic Development and Planning, Faculty of Economics, Allameh Tabataba’i University

2 PhD in science and technology policy, University of Tehran, Tehran, Iran

3 Master’s Degree in Economics and Electronic Commerce, Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran.

https://doi.org/10.22034/kes.2026.2092976.1122
Abstract
This study aims to explain the effect of digital leadership and organizational AI usage intensity on the relative performance of Iranian knowledge-based firms, with an emphasis on the mediating role of business model innovation. Digital leadership is conceptualized as a second-order construct comprising innovative and supportive dimensions, and business model innovation is examined as a mechanism through which managerial and technological effects are transmitted to relative performance. In terms of purpose, this study is applied, and in terms of method, it follows a descriptive-survey design. Cross-sectional data were collected through a structured questionnaire, and after data screening, 264 valid questionnaires were analyzed using partial least squares structural equation modeling and SmartPLS 3 software. The significance of the relationships was assessed through bootstrapping with 5,000 subsamples. The findings indicate that digital leadership has a positive and significant effect on organizational AI usage intensity, business model innovation, and relative performance. In addition, organizational AI usage intensity has a significant effect on business model innovation; however, its direct effect on relative performance is not significant. Business model innovation shows the strongest direct effect on relative performance and plays a significant mediating role in the main relationships. The results suggest that improving the performance of knowledge-based firms requires digital leadership and the transformation of AI capabilities into business model innovation.

Keywords

Digital leadership
organizational artificial intelligence
business model innovation
firm relative performance
knowledge-based firms
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