Partial Least Squares Structural Equation Modeling Research Articles

Graduate Education in China Meets AI: Key Factors for Adopting AI-Generated Content Tools

Abstract Factors influencing Chinese graduate students’ adoption of AI-generated content (AIGC) tools are examined through partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA). The developed AIGCT-SI model incorporates key elements such as information accuracy, trust, and privacy concerns. PLS-SEM results indicate that performance expectancy, effort expectancy, facilitating conditions, and habit significantly impact students’ intentions, with trust acting as a key mediator, particularly for privacy concerns and social influence. FsQCA reveals seven configurations, demonstrating how combinations of performance expectancy, effort expectancy, and facilitating conditions drive adoption. A bidirectional relationship between privacy concerns and trust is observed, with trust mitigating privacy risks in several configurations. This integrative approach highlights the complex dynamics of AIGC tool adoption and provides strategic insights for their effective use in Chinese graduate education. As the findings are based on the Chinese context, further exploration in other educational settings is encouraged to validate their broader applicability.

ANALYSING THE ROLE OF POSITIVE PSYCHOLOGICAL CAPITAL IN PROMOTING EMPLOYEE WELL-BEING IN HEALTHCARE ORGANIZATIONS: INSIGHTS FROM PUBLIC HOSPITALS IN ALGERIA

Purpose: The purpose of this study is to explore the impact of positive psychological capital on enhancing employee well-being within healthcare organizations, with a focus on public hospitals in Algeria. The aim is to gain insights from administrators working in these institutions to understand how positive psychological capital influences employee well-being. Theoretical Reference: The study is grounded in the theory of positive psychology, specifically focusing on the concept of psychological capital. It seeks to understand how positive psychological resources such as optimism, resilience, hope, and self-efficacy contribute to the well-being of employees in healthcare settings. Methodology: The methodology employed involves surveying 97 administrators from public hospitals in Algeria. An electronic questionnaire was distributed to gather data, and analysis was conducted using SmartPLS4 software, which utilizes the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. This approach allows for examining the relationships between variables, particularly the influence of positive psychological capital on employee well-being. Findings: The findings indicate a significant role of positive psychological capital in promoting employee well-being within healthcare organizations. The study reveals that enhancements in positive psychological capital correlate with increased levels of psychological, social, and physical well-being among employees. These results underscore the importance of fostering positive psychological resources in healthcare work environments to support the well-being and performance of staff members. Implications for Theory and Practice: The study contributes to theoretical understanding by emphasizing the importance of positive psychological capital in healthcare settings. It suggests that interventions aimed at enhancing positive psychological resources can lead to improvements in employee well-being and overall organizational performance. Practically, the findings suggest that healthcare organizations in Algeria should prioritize strategies that cultivate positive psychological capital among employees to foster a supportive and thriving work environment. Originality: This research offers original insights into the relationship between positive psychological capital and employee well-being in the context of healthcare organizations in Algeria. By focusing on public hospitals and involving administrators in the study, it provides unique perspectives that contribute to the existing literature on positive psychology and organizational well-being. The study's findings fill a gap in understanding the role of positive psychological resources in promoting employee well-being within healthcare settings, particularly in the Algerian context.

Unlocking the Power of Financial Experience: How Risk Perception Shapes Investment Decisions

Research Aims: This study aims to investigate the influence of financial experience on investment decisions, with risk perception acting as an intervening variable among stock investors in Banjarmasin. Design/methodology/approach: The research employs a Partial Least Squares Structural Equation Modeling (PLS-SEM) approach to analyze the data collected through a survey questionnaire distributed to 122 stock investors in Banjarmasin. This methodology allows for simultaneous analysis of direct and indirect relationships between variables, providing a comprehensive understanding of the dynamics influencing investment decisions. Research Findings: The findings indicate that financial experience significantly and positively affects investment decisions, suggesting that investors with more extensive financial experience are likely to make more informed and strategic choices. Furthermore, financial experience significantly impacts risk perception, which in turn influences investment decisions, underscoring the crucial role of risk perception as a mediator in this relationship. Theoretical Contribution/Originality: This study contributes to the behavioral finance literature by elucidating the relationship between financial experience, risk perception, and investment decisions. It highlights the importance of financial literacy and education in enhancing investment decision-making processes, thereby promoting more rational and independent investment choices. Keywords: Financial experience, investment decisions, risk perception, behavioral finance, PLS-SEM

Limitations and Future Directions in Studying Organisational Justice in Academia: A Call for Longitudinal and Multivariate Approaches

This study delves into the complex dynamics of organizational justice within academic settings, acknowledging its significant role in shaping faculty perceptions and institutional effectiveness. Despite offering valuable insights, the study is constrained by its cross-sectional design, which limits the ability to infer causality. To address this limitation, future research should employ longitudinal designs, enabling the exploration of how perceptions of organisational justice evolve over time. Additionally, investigating other potential modifiers, such as organisational subcultures and individual differences, could provide a more nuanced and comprehensive understanding. Emphasizing these approaches will enhance the depth of knowledge regarding organisational justice, facilitating more effective strategies to foster fair and equitable academic environments. Through Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis of data from 276 MBA faculty members, the research identifies leadership behavior, organisational policies and procedures, and interpersonal relationships as key antecedents of organisational justice. The study further explores how these antecedents, through organizational justice, affect job satisfaction and organizational commitment, and how academic rank moderates these relationships.

Reimagining sustainability: The power of AI and intellectual capital in shaping the future of tourism and hospitality organizations

This research investigates the effect of artificial intelligence (AI) on organizational sustainability (OS) and delves into how this relationship is mediated by various dimensions of intellectual capital (IC), namely human (HC), structural (SC), and relational capital (RC). Data were collected from employees of Saudi travel agencies, resulting in 1122 valid responses, which were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that AI positively impacts OS as well as the three IC dimensions. Additionally, HC, SC, and RC have a positive influence on OS. The study also reveals that these dimensions partially mediate the relationship between AI and OS. This study advances the literature by clarifying how AI-enabled capabilities are translated into sustainable outcomes within the tourism and hospitality sectors. The findings offer valuable insights for industry professionals aiming to harness AI technologies for sustainable transformation. The study also offers strategic recommendations for tourism and hospitality organizations to invest in enhancing their IC, thereby optimizing the sustainability advantages of AI integration.

Effect of The Implementation of International Maritime Law and The Quality of Ship Crew on The Prevention of Coastal Environmental Pollution with Ship Safety as a Mediation in The Bintan Island Area

: This study aims to investigate the effect of the implementation of international maritime law and the quality of ship crews on the prevention of coastal environmental pollution with ship safety as a mediating variable in the Bintan Island area. With a focus on the issues of the implementation of maritime regulations that are not yet optimal and the variability of the quality of ship crews, this study uses a quantitative descriptive method approach with a sample of 160 ship crews in Bintan Island. The standard theory in takingThe samples used in this study were obtained using the Nonprobability Sampling technique with Saturated Sampling. Data were collected through a questionnaire that measured the variables of the application of international maritime law, the quality of the ship's crew, ship safety, and prevention of coastal environmental pollution. Data analysis was carried out using Structural Equation Modeling Partial Least Squares (SEM-PLS) to evaluate the relationship between variables. The results of the study indicate that the application of international maritime law has a significant effect on ship safety and prevention of coastal environmental pollution. In addition, the quality of the ship's crew also affects ship safety and pollution prevention efforts. Ship safety has been shown to play a significant role as a mediator in the relationship between the application of international maritime law andquality of ship crews with prevention of coastal environmental pollution. The discussion of these findings indicates that increasing the implementation of international maritime law and improving the quality of ship crews can improve ship safety and reduce environmental pollution. Ship safety plays a crucial role in mediating this relationship. This study concludes that stricter policies and effective training for ship crews will contribute to the protection of the coastal environment in Bintan Island. The implications of these results emphasize the importance of implementing better maritime policies and improving the competence of ship crews to achieve optimal results in preventing coastal environmental pollution.

Consumer behavior and spending patterns on cultural goods and services

This study investigates the factors influencing consumer behavior and spending patterns on cultural goods and services. Using a quantitative research approach with Partial Least Squares Structural Equation Modeling (PLS-SEM), data were gathered through a structured survey of 350 respondents from diverse demographic backgrounds. The results reveal that cultural interest, social influence, and perceived value have a significant and positive impact on consumer spending behavior, with cultural interest showing the strongest influence (β = 0.45, p < 0.01). Additionally, the study highlights the mediating role of perceived value in the relationship between social influence and spending behavior. These findings provide practical insights for marketers and cultural institutions aiming to better understand consumer motivations in the cultural sector. Future research should consider expanding the sample size and exploring other potential mediating variables.

Organizational Commitment as a Mediator: Exploring the Relationship between Job Satisfaction and Job Performance in the Ghanaian Public Sector

Public sector organizations in developing countries face significant challenges related to workforce retention, job satisfaction, and performance, particularly in Ghana, where limited resources and economic constraints exacerbate these issues. Addressing these challenges is vital for improving organizational outcomes and ensuring effective delivery of public services. This study explores the relationship between job satisfaction and job performance in Ghana’s public sector, focusing on the mediating role of organizational commitment. Understanding these dynamics is becoming increasingly important as public sector organizations grapple with the complexities of workforce management in resource-constrained environments. A sample of 300 employees was selected through purposive and convenience sampling, with 200 valid responses (66.6% response rate). Data were analyzed using SMART PLS 3.0 and SPSS 22, applying partial least squares structural equation modeling (PLS-SEM) to assess the research model and hypotheses. The findings reveal that job satisfaction significantly impacts affective, continuance, and normative commitment. Additionally, continuance and normative commitment positively influence job performance, whereas affective commitment does not. This study underscores the importance of job satisfaction in enhancing job performance through its effect on organizational commitment. To improve workforce outcomes, the study recommends targeted training programs that address skill gaps and increase job satisfaction. Public sector organizations, particularly local governments, should prioritize the implementation of effective job satisfaction strategies to boost employee performance and commitment. This research provides valuable insights into how public sector entities in developing countries like Ghana can foster employee performance through improved organizational commitment.

Attitude towards the profession, emotional exhaustion, cynicism, and intention to abandon tourism SMEs as an entrepreneur: a conditional mediation model

ABSTRACT While small and medium-sized enterprises (SMEs) are fundamental to the tourism industry, the literature analysing those that fail is scarce. The present study addresses the reasons by examining how two dimensions of burnout (emotional exhaustion and cynicism) and attitude towards being an entrepreneur influence the intention of entrepreneurs to leave their businesses. It also demonstrates the role of conditional mediation, where attitude towards being an entrepreneur moderates the mediation of cynicism in the relationship between emotional exhaustion and intention to abandon one’s business. The sample comprised 231 SME entrepreneurs, and the data were analysed using tri-level approach: partial least squares structural equation modeling (PLS-SEM); necessary condition analysis (NCA); and artificial neural networks (ANN). The results confirm the importance of the variables above in the participants’ intention to abandon one’s business.

The Impact of Market Orientation, Product Innovation, and Competitive Advantage on the Marketing Performance of Culinary Enterprises

In this study, the impact of product innovation and market orientation on the marketing performance and competitive advantage of micro-entrepreneurs in Kampar Regency's culinary industry will be examined. Additionally, this study assesses how competitive advantage influences marketing effectiveness by acting as a mediating factor between market orientation and product innovation. Tests of the direct and indirect effects between variables are conducted quantitatively using the SEM-PLS (Structural Equation Modeling - Partial Least Squares) analytical methodology. Questionnaires and interviews with micro-entrepreneurs in Kampar Regency's culinary industry were used to gather data. A total of 378 respondents were chosen as relevant samples using the purposeful sampling approach. The findings indicated that competitive advantage was significantly enhanced by market focus and product innovation. Furthermore, marketing performance was significantly improved by competitive advantage, product innovation, and market orientation. Additionally, the link between market orientation and product innovation on marketing success was shown to be reinforced by competitive advantage acting as a mediator.

Driving SMES towards Green Business: The Impact of Sustainable Marketing Mix on Performance and Loyalty in BNI'S Go Green Movement

Growing global concerns over environmental issues, such as climate change and pollution, have heightened the demand for sustainable business practices, particularly in the banking sector. Financial institutions support environmental sustainability through green finance by offering eco-friendly products like green loans and bonds. This study examines how BNI's Go-Green initiative enhances SME customer loyalty by incorporating the sustainable marketing mix, focusing on people, profit, and planet. A quantitative approach was used to assess the impact of the sustainable marketing mix on SME performance and customer loyalty within BNI's Go Green movement in Bukittinggi, Indonesia. A stratified random sample of 303 SMEs was selected from a population of 1,239. Data were gathered through structured questionnaires using a five-point Likert scale and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). Confirmatory Factor Analysis (CFA) validated the measurement model, and the structural model assessed direct and indirect effects. The variable had the highest Average Variance Extracted (AVE) 0.873. Discriminant validity showed a strong correlation between business sustainability and customer loyalty (0.768). Place and Business Sustainability had significant positive effects on customer loyalty, while People and Planet had more limited impacts. This study introduces the expanded marketing mix people, profit, and planet into the green finance framework and highlights the underexplored mediating role of business sustainability in fostering SME customer loyalty. The findings emphasize the importance of aligning green banking products with SME needs to enhance loyalty and support global sustainability goals, including the United Nations’ Sustainable Development Goals (SDGs).

Leadership styles and job insecurity in Indonesian start-ups: The role of challenges and engagement

Even though Indonesia’s start-up scene is experiencing rapid growth, the industry is grappling with considerable hurdles, such as a high rate of business closures, strong dependence on employee efficiency, and heavy reliance on technology. This paper examines the correlation between leadership styles, job challenges, job engagement, and job insecurity in Indonesian start-ups, which face unique challenges affecting employee job security. Unlike most research on how job insecurity impacts job engagement, this study explores whether higher job engagement impacts job insecurity, providing practical insights for leaders. The study was structured using a quantitative approach known as structural equation modeling-partial least squares (SEM-PLS), which analyzed 198 responses from Indonesian start-up employees. This study found that leadership styles significantly affect job insecurity (β = 1.337, p-value < 0.05), however, leadership styles do not substantially affect job engagement (β = 0,435, p-value > 0.05). Another finding states that job challenges do not significantly affect job engagement (β = 0.491, p-value > 0.05) and job insecurity (β = –0.037, p-value > 0.05). Job engagement significantly influences job insecurity (β = –0.428, p-value < 0.05). This study specifically targets employees in Indonesian start-ups to uncover mechanisms and offer practical recommendations for enhancing job security and motivation. The findings underscore the significant impact of leadership style on job insecurity, emphasizing the importance of engaging and motivating employees through personalized leadership style approaches to enhance job stability and overall workforce effectiveness in Indonesian start-ups.

The Role of Visionary Leadership, Curriculum Innovation, and Management of Educational Resources on the Quality of Character-Based Education for High School Students in West Java

This study examines the influence of visionary leadership, curriculum innovation, and educational resource management on the quality of character-based education in high schools in West Java, Indonesia. Utilizing a quantitative approach, data were collected from 170 high school students through a Likert-scale survey. The data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The findings reveal that curriculum innovation has the most significant positive impact on character-based education, followed by the management of educational resources and visionary leadership. These results underscore the importance of adopting innovative curricula and effectively managing educational resources to enhance character education. Visionary leadership also plays a critical role in setting a direction for character development, though its impact is more pronounced when combined with curriculum and resource management. The study provides insights for educators, policymakers, and school administrators in creating an educational environment that fosters both academic and moral development.

Understanding the consumer purchase behaviour towards green electronic products: using insight from the theory of planned behaviour

PurposeThis research investigation aims to explore the factors that affect purchasing behaviour among consumers in India in the context of green electronic products with the aid of the extended theory of planned behaviour (TPB) by incorporating two additional constructs, namely environmental concern and ethical obligation.Design/methodology/approachThe current research adopted a quantitative methodology, utilising a survey (questionnaire) to gather data from respondents residing in Delhi-NCR, India. A convenience sampling technique was used to select these respondents. Both online and offline modes were used to collect the data. Moreover, to evaluate the theoretical foundation of the investigation, the researchers employed PLS-SEM (partial least square structural equation modelling) on 346 useable samples.FindingsThe outcome reveals that attitude, subjective norm and perceived behaviour control (PBC) are significant predictors, supplementary constructs such as environmental concern are not significant predictors, whereas ethical obligation is a substantial predictor of purchase intention. Consumer purchase behaviour, in turn, is influenced by consumer purchase intention.Practical implicationsThe outcome of this research could help the country’s legislators formulate policies and programs related to current environmental problems faced by our planet. Marketers could understand the factors that drive consumers' purchasing behaviour towards green electronic products and design effective marketing strategies accordingly. Thus, by enhancing the company’s green image, marketers of green products may potentially increase future purchases, all of which contribute to solving worldwide environmental problems.Originality/valueThis research confirms the usefulness of TPB in understanding Indian consumers' purchasing intention and behaviour towards green electronic products. It further extends the TPB by showing that new components, environmental concerns and ethical obligations influence Indian consumers' purchasing intentions and behaviour. Moreover, prior studies mostly used both additional constructs for green products. Current research used specific types of green products, i.e. green electronic products, as very few studies are available on these products that apply TPB, which makes this study novel. In contrast to previous research that primarily examined purchase intention, this study takes a further step by investigating the connection between intentions and consumers' purchase behaviour. It establishes intention as a precursor to behaviour, specifically towards green electronic products. Additionally, this study introduces new constructs and explores the Indian context, significantly contributing to the existing literature.

Artificial Intelligence and Environmental Sustainability: Insights from PLS-SEM on Resource Efficiency and Carbon Emission Reduction

This study investigates the relationship between Artificial Intelligence (AI) and environmental sustainability, focusing on how AI-driven resource efficiency, energy consumption, environmental monitoring, and carbon emission reduction contribute to sustainability outcomes. The purpose of this research is to examine the dual nature of AI's impact on sustainability by testing both positive and negative effects using Partial Least Squares Structural Equation Modeling (PLS-SEM). Drawing from a sample of 233 firms in the energy, transportation, and manufacturing sectors, this study collects data through an online survey measured on a five-point Likert scale. Four hypotheses are tested, revealing that AI-driven resource efficiency and environmental monitoring positively affect sustainability, while AI energy consumption has a negative impact. Furthermore, AI integration in industrial processes helps reduce resource depletion. The findings suggest that governments should incentivize AI adoption aimed at resource efficiency and environmental monitoring through policies like tax breaks or subsidies, particularly for firms reducing their carbon footprint. To mitigate the negative effects of AI energy consumption, policymakers are urged to promote energy-efficient AI models and invest in renewable energy infrastructure. A balanced policy approach is crucial to optimize the environmental benefits of AI while minimizing its energy-related drawbacks.

CARBON ACCOUNTING INFORMATION DISCLOSURE AND INVESTORS’ ATTITUDES TOWARDS INVESTING IN NIGERIAN ECONOMY

Users of financial reports of companies have shifted their interest from only profitability to efforts of enterprises in addressing environmental problems, global climate change, carbon reduction, and their vision for green development. Business stakeholders particularly investors are more interested in investing their funds in enterprises that demonstrate commitment to de-carbonization and reduction of harmful effects of their operation on society and reporting. Reporting/disclosure is an issue in Nigeria where Carbon Accounting Information Disclosure (CAID) is voluntary. The voluntary disclosure has generated doubts about whether it has impacted on investors' attitudes to commit their funds to enterprises in the Nigerian economy. The aim of this study there is to examine the impact of CAID on the attitudes of investors to invest in enterprises in Nigeria. Data for the study were collected primarily through a questionnaire administered to a sample of investors in corporate enterprises in Nigeria. Analysis of the data was done through Partial Least Square Structural Equation Modeling (PLS-SEM). Results indicated that the disclosure has a positive and significant impact on investors' attitudes toward investing in enterprises in the Nigerian economy. The study recommended that the government should by legislation make CAID compulsory in Nigeria, especially for those enterprises whose activities have a direct impact on the environment and society.

THE MODERATION ROLE OF E-INVOICING IN NATIONAL TRADE: THE IMPACT OF IT AUDITING ON E-ACCOUNTING INFORMATION SYSTEMS AT JORDANIAN CUSTOMS POINTS

This study investigates the moderation role of e-invoicing in national trade, specifically examining how IT auditing impacts electronic accounting information systems (EAIS) at Jordanian customs points. The primary aim is to analyze how effective IT auditing enhances EAIS effectiveness and explores the implications for operational efficiency and compliance within Jordan’s customs operations. A survey methodology was employed, gathering primary data from 322 employees across various customs points through distributed questionnaires. We utilized partial least squares structural equation modeling (PLS-SEM) to ensure methodological rigor in our analysis. The findings indicate that effective IT auditing significantly enhances EAIS effectiveness, with e-invoicing acting as a moderator that amplifies this effect. This underscores the critical role of auditing practices in improving operational dynamics at customs points, facilitating smoother national trade processes. The study offers actionable insights for industry professionals and policymakers, emphasizing the importance of integrating robust IT auditing practices with e-invoicing systems. By doing so, stakeholders can promote greater efficiency and compliance in national trade operations at Jordanian customs points, ultimately contributing to the optimization of trade processes and regulatory adherence. This research highlights the significance of strengthening auditing frameworks and leveraging technological advancements like e-invoicing to enhance operational effectiveness within Jordan’s customs environment.

Reflective model assessment of adherence to COVID-19 non-pharmaceutical interventions

Abstract Background Non-pharmaceutical interventions (NPIs) decrease COVID-19 transmission. We identified behavioral factors that affected NPI adherence according to Normalization Process Theory (NPT) in medical students, travel seekers, and people with substance use disorder using reflective model measurement, which previously had not been conducted. Public health officials should consider factors that influence adherence to create preventive strategies for COVID-19. Methods In a cross-sectional design, medical students and people with substance use disorders in treatment comprised a probabilistic sample, and travelers and COVID-19 suspected persons comprised a convenience sample. Participants were from Split-Dalmatia County (n = 656) in the Mediterranean and consented to self-administered surveys in 02/2021. Sociodemographic data, locus of control (LoC), and moral behavior were collected. Partial least squares structural equation modeling (PLS-SEM) was used to measure reflective assessment of NPI adherence according to NPT. Results PLS-SEM reflective model assessment provided two-group specific factors in inverse relationships which determined NPI adherence with excellent goodness of fit (χ2=1.292, df = 1; p = 0.297). Significant negative factors covariance estimate (-0.716) revealed an increase in adherence to the first factor, NPIs and internal LoC [0.640], as the second factor, age (≤25) and highest education level (1.362), decreased. LoC was the mechanism by which sex (MLsex=-0.017, SE = 0.007, p < 0.016) and being a student or person with substance use disorder (MLgroup=-0.008, SE = 0.003, p = 0.015) showed indirect effect on NPI adherence. Conclusions Students and people with substance use disorders more adhered to NPIs. Higher-educated younger adults with a tendency toward external LoC facilitated the normalization. Public health interventions could encourage these subgroups to act as promoters to increase NPI adherence in similar settings. Key messages • COVID-19 non-pharmaceutical interventions and psychological factors of students and people with substance abuse disorder influenced adherence. Targeted interventions could promote adherence. • Public health officials should consider that preventive strategies may be more effective in highly educated adults younger than 25 years of age.

Exploring the impact of egalitarianism on employee proactivity: unpacking the mediating role of relational social capital

PurposeThis study examines how the resource of egalitarianism, at both individual and organizational levels, affects employee proactivity. Specifically, we propose relational social capital is an effective mechanism through which an individual's egalitarian mindset and the organization's egalitarian HR practice facilitate employee proactivity.Design/methodology/approachThis study surveys a sample of 511 knowledge workers employed in small to medium-sized enterprises in Australia and New Zealand.FindingsResults of partial least squares structural equation modeling (PLS-SEM) demonstrate that relational social capital partially mediates the relationship between an egalitarian mindset and employee proactivity and fully mediates the effects of egalitarian HR practice on employee proactivity.Practical implicationsGlobally, a social transformation, particularly around the notions of social responsibility and sustainability, is occurring, and this means increasing numbers of employees support egalitarian ideals. HR practitioners therefore need to be aware of how their human resource management (HRM) system supports this value orientation.Originality/valueThis study illuminates a new performance pathway by highlighting egalitarianism's contribution, as a valuable resource, to organizational and employee innovation. This focus on egalitarianism is both timely and important. This is because the United Nations Sustainable Development Goals, through their support of diversity, inclusiveness and equality, reflect an egalitarian ethos, and managers are becoming increasingly cognizant of the need to embed these values into organizational structures and operational processes.

Balancing Innovation and Profitability: Technological Diversification in Iran’s Insurance Industry

Abstract This study explores how technological diversification affects financial performance in Iran’s insurance industry. Using semi-structured interviews with six experts, including CEOs and faculty members, key indicators of technological diversification were identified, such as new underwriting software and digital advertising platforms. A 33-item questionnaire was developed based on these insights and distributed to top managers of Iranian insurance companies, with secondary financial data sourced from the Central Insurance of Iran. The study employes regression analysis and Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the impact of technological diversification on financial performance, controlling for firm size, debt ratio, and company age. Findings indicate a significant negative relationship between technological diversification and both Return on Equity (ROE) and Return on Assets (ROA), suggesting that the costs of adopting new technologies may outweigh their short-term financial benefits. Additionally, high debt ratios were found to adversely affect ROA, highlighting the financial risks of excessive borrowing.