Does cultural economics affect country’s competitiveness?

Abstract

This study investigates the impact of artificial intelligence (AI) adoption on human resource management (HRM) effectiveness within Lebanese organisations, a context marked by institutional fragility and cultural complexity. Drawing upon socio‑technical systems theory, the technology acceptance model, the technology–organisation–environment framework, and ethical governance theory, a conceptual model was developed to test direct and indirect effects of AI adoption. Survey data from 349 HR professionals were analysed using structural equation modelling. Results show that AI adoption significantly enhances both decision‑making quality and HRM effectiveness. Decision‑making quality partially mediates the AI–effectiveness relationship, while ethical AI governance strengthens both direct and indirect effects. The findings underscore that responsible AI integration can deliver strategic HR benefits even in fragile economies when supported by sound governance and informed human oversight. The study contributes to HRM scholarship by extending technology adoption models to unstable economic contexts and offering practical insights for developing ethical and effective AI‑enabled HR systems.

Keyword : Artificial Intelligence, Human Resource Management, Decision‑Making, Ethical Governance, Fragile Economies, Lebanon