AI and Digitalization in Manufacturing: Impacts on Enterprise Operational Performance

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

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Abstract

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.

Item Type:	Article
Uncontrolled Keywords:	AI, Digital transformation, Operational performance, Production performance, R&D outcomes
Subjects:	H Social Sciences > HD Industries. Land use. Labor Q Science > QA Mathematics > QA75 Electronic computers. Computer science T Technology > T Technology (General)
Depositing User:	Unnamed user with email masilah.mansor@newinti.edu.my
Date Deposited:	21 Sep 2025 07:18
Last Modified:	21 Sep 2025 07:18
URI:	http://eprints.intimal.edu.my/id/eprint/2181

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