Abstract
This paper investigates the effect of artificial intelligence (product information, recommendation, and social media exposure) and payment flexibility on the operational performance of ecommerce retailers. The study is based on Transactional Cost Analysis, Material Flow, and Technology Integration theories. It considered a sample size of 270 members out of the population of 769 employees from five ecommerce companies operating in the region (Namshi.com, Noon, Joly Chic, Extra, and Styli). The analysis involved constructing a structural equation model to examine the trickle-down effect of the variables included in the study. The study concluded that artificial intelligence and payment flexibility are the core reasons that the retailers in the region are registering operational success in the retail market.
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