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 Department of Economic Development and Planning, Faculty of Economics, Allameh Tabataba’i University Corresponding Author E-mail: zandi@atu.ac.ir

2 PhD in science and technology policy, University of Tehran, Tehran, Iran E-mail: me.zandi@ut.ac.ir

3 Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran E-mail: mostafa_mansouri@atu.ac.ir

https://doi.org/10.22034/kes.2026.2092976.1122
Abstract
Iranian knowledge-based firms operate under institutional and resource constraints that may limit their ability to translate digital capabilities into performance gains. This study aimed to explain the effect of digital leadership and organizational artificial intelligence (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 was conceptualized as a second-order construct comprising innovative and supportive dimensions. Business model innovation was examined as a mechanism through which managerial and technological effects are transmitted to relative performance. In terms of purpose, this study was applied, and in terms of method, it followed a descriptive-survey design. Cross-sectional data were collected through using a structured questionnaire, and after data screening, 264 valid questionnaires were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicated that digital leadership had a positive and significant effect on organizational AI usage intensity, business model innovation, and relative performance. In addition, organizational AI usage intensity had a significant effect on business model innovation but no significant direct effect on relative performance, suggesting that its performance value may be realized primarily through business model innovation. Consistent with this interpretation, the business model innovation showed the strongest direct effect on relative performance and significantly mediated the main relationships. The findings suggested that managers of knowledge-based firms should integrate organizational AI usage with digital leadership and business model innovation, while policymakers should support capability-building initiatives that enable firms to convert AI use into firm-level value and performance gains.

Keywords

Digital Leadership
Organizational Artificial Intelligence (AI)
Business Model Innovation
Firm Relative Performance
Knowledge-based Firms
Subjects
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Knowledge Economy Studies
Volume 3, Issue 2
July 2026
Pages 37-68

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