The Interplay between Artificial Intelligence and

Innovation and its impact on B2B Marketing

2023 International Conference on Business Analytics for Technology and Security (ICBATS) | 979-8-3503-3564-4/23/$31.00 ©2023 IEEE | DOI: 10.1109/ICBATS57792.2023.10111306

Performance
Muhammad Turki Alshurideh Samer Hamadneh
Department of Marketing, School of Business, The University of Department of Marketing, School of Business, The
Jordan, Amman 11942, Jordan. University of Jordan, Amman 11942, Jordan.
& Applied Science Research Center, Applied Science Private [email protected]
University, Amman, Jordan
https://orcid.org/0000-0002-7336-381X,
[email protected]
Iman A. Akour
Department of Information Systems, College of Computing
and Informatics. University of Sharjah, Sharjah 27272,
Barween Al Kurdi United Arab Emirates,
Department of Marketing, Faculty of Economics and [email protected]
Administrative Sciences, The Hashemite University,
Zarqa, Jordan. https://orcid.org/0000-0002-0825-4617, Enass Khalil Alquqa
[email protected] College of Art, Social Sciences and Humanities, University
of Fujairah, United Arab Emirates

Abstract— Artificial intelligence has the potential to greatly improve organizations’ marketing potential, B2B digital marketing is
the existing economy's efficiency. It might, however, have a more experiencing an exciting renaissance [1]. The three major goals
profound impact by serving as a brand-new, all-purpose "method of of B2B marketing are to promote greater understanding, prod
invention" that can change the organization innovation processes. consideration, and create and nurture sales leads into new
A wide spectrum of organizations is finding benefit in artificial customers. While considerations are the cornerstone for
intelligence (AI), which is upending the marketing and global fostering connections with prospects and clients, awareness
economic markets. Business researchers and practitioners are comes from generating leads and making a company an industry
showing an increasing interest in AI, according to recent highly leader. Instead of concentrating solely on technology and
referenced studies. For established and startup businesses employing
products, marketing researchers have the chance to further
big data and developing new, innovative strategies and business
models, even in a B2B setting, AI is both an opportunity and a
explore AI interactions inside a B2B innovation framework. It
limitation. This study employs quantitative methodology and data is essential to understand how opportunities for innovation in the
analysis methods based on structural equation modelling. using the AI area may be harnessed and how the risk associated with those
program SmartPLS 4.0. employing practical random sampling innovations can be reduced in the context of reinventing AI-
procedures to select a sample. The replies of 191 employees of enabled business processes in a B2B setting [2]. As the fourth
financial organizations situated in Dubai, United Arab Emirates, industrial revolution pushes the limits of digitalization, machine
who completed online surveys were evaluated. learning, robotics, and AI, such research is crucial.

Keywords—artificial intelligence, innovation, B2B marketing

Much has been said about how corporations may manage
performance. this dynamic business environment when it comes to
digitalization [3]. There is a wealth of study examining the
I. INTRODUCTION effects of innovation in the digital world, from social media
techniques to mobile applications, from the digitization of
Marketing scholars are becoming more and more interested
processes to the usage of artificial intelligence. New
in the use of artificial intelligence (AI) in B2B marketing.
technological innovation in the form of disruptive technology
Businesses are already utilizing AI to uncover unique strategic
and innovative digital thinking has given these various
alternatives in vast swaths of client data that human analysts
researches an extra boost [4].
would have missed, as well as to potentially offer cheaper
operating expenses. As new strategies expand these

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 The application of marketing has undergone significant following hypothesis was developed according to the
theoretical changes as a result of technical advancement in the background study:
digital sphere, particularly in the business-to-business (B2B)
setting where communication is crucial to the alignment of the Ho1: Artificial Intelligence has no relationship and impact
many stakeholders. From the perspective of applications, B2B on B2B Marketing Performance in retail industry UAE.
is defined as "a form of information technology that B. Innovation influence on B2B Marketing
electronically permits enterprise interactions among a range of Theoretically, innovation refers to any subtle or significant
entities in order to achieve corporate or individual objectives." shift in technology incorporated into a product or process,
Understanding the impact of social media on the sales process including adjustments to value-added tasks like administration
and the pleasure of its clients. [5] assert that well-known social and service [15]. From a resource-based perspective, among
media platforms and mobile apps have transformed into ideal other capabilities, this inventive capability is considered as
channels for "producing, consuming, and exchanging different essential to a company developing strategic competitiveness.
types of information." Innovations in particular help businesses succeed financially by
In the last few years, AI has made significant progress in enabling them to sell a broader variety of expensive, rare,
rethinking the B2B marketing process. AI has not only aided distinctive, and differentiating goods. In that sense, technical
marketers in a variety of fields, such as website visitor innovation can comprise works produced by the industrial arts,
engagement through chatbots, but it has also proven to be highly engineering, and applied sciences. In order to obtain and keep a
effective in campaigns including predictive analytics. In the near competitive edge as well as to improve performance in a
future, AI will be able to improve business operations in a changing environment, a company must innovate [16].
variety of other ways. [4] highlighted the fascinating and unique Furthermore, a number of factors affect the link between
ways that AI will change B2B marketing in most productive innovation and marketing performance [17]. The ability of a
way. corporation to transform technology investments into innovation
II. LITERATURE REVIEW is the first, and it is typically influenced by resources that are
exclusive to that company. The type and viability of the
The word "innovation" is frequently used in management innovation that emerges from the company's R&D investments
contexts to refer to various ideas. It is frequently possible to refer to support its commercial activity is the second consideration
to the development, production, and marketing of an innovation [18]. Finally, the degree of market competition that is associated
as a "iterative process" that is sparked by the perception of a new with the firm's stage of technology adoption [19]. The following
market opportunity [6]. These opportunities may include hypothesis was developed according to the background study:
creating new concepts for goods, production techniques, supply
sources, market exploitation, new business structures, processes Ho2: Innovation has no relationship and impact on B2B
for enhancing capabilities, and improved utility [7]. Recent Marketing Performance in retail industry UAE.
study in innovation has increasingly focused on "technical C. Artificial Intelligence and Innovation impact on B2B
innovation," spanning fields of management, marketing,
Marketing Performance.
economics, and production engineering, as more business
activities engage on the digital platform [8], [9]. With increased interactions between buyers and sellers,
communication has become simpler. Through a thorough
A. Artificial Intelligence influence on B2B Marketing communication strategy, these interactions on the B2B platform
Performance are frequently leveraged to forge stronger bonds with the goal of
The creation of machine intelligence that mimics elements influencing the purchasing behavior of its clients. The
of human intelligence are referred to as artificial intelligence. effectiveness of these techniques, which typically include value
Visual perception, logic, problem-solving, recalling past propositions from the company to the client, depends on a
knowledge, communication, perception, and action are among number of variables, including the analysis of the messages'
the aspects of human intellect that are copied [10]. The goal of quality and consistency. It cannot be overstated how important
AI is to make it possible to build intelligent machines. An entity technical innovation is to boosting a B2B company's
with intelligence is able to respond properly to its environment competitive advantage and overall performance.
and foresee its needs [11] [12]. For instance, [8] study suggests that the disruptive potential
Business research has focused on a variety of marketing of technology might concentrate outdated B2B procedures. As a
contexts, including service systems, healthcare, hotels and result, an increasing number of B2B companies are turning to
restaurants, virtual bots, and other practical big data uses. technological innovation to boost productivity, effectiveness,
Cognitive computing, a form of input data-based deep learning and company expansion. However, according to [20], B2B
AI that blends the best of human and machine learning, is an technical advancements can produce a better result with use of
essential area of AI research with tremendous potential [13]. A artificial intelligence and enhanced operational factors that
thorough theoretical foundation is required to comprehend how emphasizes innovative techniques [21]. The adoption of B2B
these tools can be applied in the B2B sphere as AI solutions technical innovation, such as IT in Social Media Apps, is widely
become increasingly accessible and useful to corporate markets employed to support numerous tasks of the company
[14]. The application of AI is anticipated to have significant theoretically. From the adopter's perspective, this might be seen
influence on key functional areas in different industries. The as a development innovation facilitator. If the application is
successful, the firm's procedures are altered, and the new method

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is thereafter more generally embraced [22]. In this regard, the impacts on marketing agencies, this included questions
technology used might enable innovation to the point where it concerning the impact of innovation and artificial intelligence
offers a new service to customers in a way that is novel for the on B2B marketing effectiveness.
company [23]. The following hypothesis was developed
according to the background study: Respondent information was gathered via a survey on a
Likert scale that ranges from 1 for strongly agree to 5 for
Ho3: Artificial Intelligence and Innovation has no strongly disagree. SmartPLS 4 was used to evaluate the PLS-
relationship and impact on B2B Marketing Performance in retail SEM hypothesis and test the proposed model. Testing for
industry UAE. validity and reliability, discriminant validity, were also done.
The demographic data has distributed statistically in below
Table 1.
A. Research Contribution
Table 1: Distribution of survey respondents
Although it is obvious to B2B marketers that AI offers huge
prospects for knowledge and innovation, there are still Description Frequency Percentage
challenges in operationalizing it for marketing operations and (f) (%)
making wise decisions . This resaerch begin by providing a brief Gender
Male 180 84.91
theoretical review as well as the empirical analysis of AI, that Female 32 15.09
would be consider the AI with innovation and their impact on Age
B2B marketing performance in this digital era. Therefore, in Group
order to create an integrated paradigm and suggest future <30 54 25.47
research directions, we concentrate on identifying the key areas 30-40 50 23.58
of AI's potential and innovation usage in B2B marketing 40-50 77 36.32
performance. <50 31 14.63
Job
As a result, the purpose of this research is to investigate the Position
impact of artificial intelligence and innovation on B2B Marketing Manager 88 41.52
marketing performance with a structural modelling approach to Sales Manager 76 35.84
Manager IT & 48 22.64
show that if there is a positive, or negative association between Development
artificial intelligence and innovation, and B2B marketing *n=212
performance. This research may serve as a springboard for
future work on how industrial marketing and management The demographic data was classified into 3 sections that
researchers may use such datasets to offer insights to business revealed with the respondents details as, male respondents were
practitioners. 180 (85%) and female were 32 (15%). Majority of the
respondents are from 40 to 50 age group indicating 36%. And
A conceptual research model was developed containing the high number of respondents were marketing manager with
three hypotheses (Figure 1) below. percentage of 41%. The overall summary is displayed in table 1
above.
Table 2: Reliability and Validity of the Model
Artificial Variables Cronb CR AVE AI INO B2B
Intelligence H1 ach’s
Alpha
Artificial 0.835 0.840 0.554 0.744
B2B Intelligence
H3 Marketing Innovation 0.860 0.861 0.507 0.60 0.712
Performanc B2B 0.844 0.876 0.565 0.85 0.74 0.75
e 1
CR=Composite Reliability, AVE=Average Variance Extracted,
AI=Artificial Intelligence, INO=Innovation, B2B=Business to Business
Innovation
H2 The reliability criteria serves as a barometer for the
consistency and long-term stability of the outcomes. In this
work, the reliability of the construct was investigated using the
Figure 1: Hypothesized Research Model value of composite reliability. A variable is deemed to have
construct reliability if both its Cronbach's Alpha and composite
III. MATERIALS reliability values are more than 0.7.
This research uses quantitative methods and data analysis The AVE value for each variable is greater than 0.50, as
strategies based on structural equation modelling and the shown in Table 1. The measuring model has therefore proven to
program SmartPLS 4.0. Convenient sampling technique are the have discriminant validity. Additionally, the concept and Fornell
foundation of the selection process. Online surveys were sent to Larcker criterion measurement were used to test the
34 company marketing companies to complete. The 212 discriminant validity of the model. If the construct correlation
legitimate respondents who submitted their surveys will now be for each indicator is larger than the construct correlation for the
evaluated. In order to comprehend the relationship and concrete

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other constructs, latent constructions can predict indicators more structure. We also tested the significance levels of our
accurately than other. The Fornell Larcker criterion hypotheses using the bootstrapping technique with 5000
measurements validity values are square root of AVE. The samples.
statistics can be viewed in the Table 2. The findings revealed that the association between each
variable is positive significant when the variable path of the
hypothesis has values less than 0.05. Even though all of the data
in table 3 above showed strong correlations that were both
positive and supported each hypothesis, the significance
threshold for this model was at level 0.05 low to detect any
significant associations. All of the direct hypotheses are
supported by the data since they all have t-values greater than
1.96, which denotes that they are all accepted. These results
imply that the performance of B2B marketing is significantly
influenced by innovation and artificial intelligence.
IV. DISCUSSION
Our hypothesized model measurements which demonstrate
that Ho1 is acceptable when the values of sig. 0.000, t-
value=4.32, artificial intelligence and B2B marketing
performance are significantly associated, are consistent with
this. Customers find it to be more advantageous to offer or
market their business through social media or websites that they
believe to be simpler, which is why this is the case. According
to the research's findings, the majority of marketers employ
cutting-edge strategies and artificial intelligence to connect with
their target audience. One of the best methods for business
marketers to sell or promote their brand is to use AI to predict
Figure 2: Model Assessment (PLS-SEM) consumer demand and need. It becomes significantly more
effective as a result of the significant increase in product sales to
For the proposed research model, the significance of the customers who are actively looking for products and services.
variables were examined. Our model predicts that the likelihood
of using artificial intelligence will have a 45% effect on B2B When it comes to marketing techniques, innovation has a
marketing performance. The R2 indicates the proportion of the significant impact on B2B marketing performance. The results
dependent variable's variance that can be attributed to the of the debate showed that H2 was supported by the value of sig.
independent variable. The effect of innovation on B2B 0.000, t-value=19.56. This aspect of innovation, which also
marketing performance is responsible for 53% of the positively impacts the B2B marketing performance, supports
discrepancy. this research hypothesis. The findings illustrated the impact of
artificial intelligence and innovation on B2B marketing
The structural model represents association between studied performance as positive p value =0.000, t-value is 8.91 that
variables (inner model). The coefficients between variables and supports the third hypothesis of the model.
the value of the R-squared coefficient of determination are used
to evaluate the structural model. The coefficient of Additionally, the use of AI in B2B marketing makes
determination is the main indicator of how well the model can businesses and their personnel more composite. For instance,
account for variations in the dependent variable R-square. technological implementation and automated accountability as
the two main barriers to the use of AI in marketing. Technology-
Table 3: Hypothesis Testing (PLS-SEM) wise, unfavorable experiences with the use of AI products
Hypothesis Paths β R² t- p- Supported bought through B2B exchanges (such as chatbots) have led to
value value scathing condemnation of AI in this setting. According to, AI in
Ho1 AI→B2B 0.081 0.456 4.32 0.000 Yes B2B marketing is excellent at using past events to forecast future
Ho2 INO→B2B 0.729 0.532 19.56 0.000 Yes trends. However, it is unable to adjust to changes in business
Ho3 AI*INO→B2B 0.611 8.91 0.000 Yes settings. The accountability of AI is centered on reliance on
AI=Artificial Intelligence, INO=Innovation, B2B=Business to Business predetermined algorithms created by tech companies but unable
to carry out their intended function, such as facial recognition
In order to strengthen the validity of our results, we added algorithms.
the partial least squares (PLS) method using SmartPLS 4 to
simultaneously evaluate the proposed model. When estimating V. CONCLUSIONS
the model relationships, PLS takes into account all of the The empirical analysis carried out with significant results of
variance (common, unique, and incorrect) that the exogenous the proposed model, that shows artificial intelligence and
variables share with the endogenous variables. The extra way of innovation have a positive relationship with B2B marketing
analysis can improve our comprehension of the data, the performance, that encourages the marketing agencies to adopt
relationships between distinct constructs, and their underlying and particulate the AI tool, applications by adopting innovative

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