@article{ART003370787},
author={Gi-Do Koo and Myoungsug Chung},
title={The Strategic Value of AI Capability in Public Procurement Markets: Institutional Alignment and Bid Performance},
journal={Journal of The Korea Society of Computer and Information},
issn={1598-849X},
year={2026},
volume={31},
number={8},
pages={253-262},
doi={10.9708/jksci.2026.31.08.253}
TY - JOUR
AU - Gi-Do Koo
AU - Myoungsug Chung
TI - The Strategic Value of AI Capability in Public Procurement Markets: Institutional Alignment and Bid Performance
JO - Journal of The Korea Society of Computer and Information
PY - 2026
VL - 31
IS - 8
PB - The Korean Society Of Computer And Information
SP - 253
EP - 262
SN - 1598-849X
AB - This study examines how AI capability creates strategic value in public procurement markets by integrating the institution-based view with dynamic capabilities theory. Using PLS-SEM with 228 managers from public-procurement-related industries and 5,000 bootstrap resamples, we find that AI capability significantly strengthens institutional alignment (β = 0.194) and execution speed (β = 0.183), whereas its effect on strategic accuracy is non-significant (β = 0.106). Institutional alignment is the primary predictor of bid success (β = 0.255, p < .001), while competitive positioning does not significantly predict it (β = 0.062, p = .337), and the AI capability × institutional alignment interaction is also non-significant (β = 0.090, p = .105). Mediation analysis further shows that AI capability creates value primarily through institutional alignment, with a significant indirect effect on bid success (indirect = 0.050, 95% CI [.012, .103]). These findings suggest that AI capability generates strategic value in regulated markets chiefly by strengthening institutional alignment rather than by improving competitive positioning alone.
KW - AI Capability;Information Processing Capability;Institutional Alignment;Competitive Positioning;Bid Success Rate;Public Procurement;PLS-SEM
DO - 10.9708/jksci.2026.31.08.253
ER -
Gi-Do Koo and Myoungsug Chung. (2026). The Strategic Value of AI Capability in Public Procurement Markets: Institutional Alignment and Bid Performance. Journal of The Korea Society of Computer and Information, 31(8), 253-262.
Gi-Do Koo and Myoungsug Chung. 2026, "The Strategic Value of AI Capability in Public Procurement Markets: Institutional Alignment and Bid Performance", Journal of The Korea Society of Computer and Information, vol.31, no.8 pp.253-262. Available from: doi:10.9708/jksci.2026.31.08.253
Gi-Do Koo, Myoungsug Chung "The Strategic Value of AI Capability in Public Procurement Markets: Institutional Alignment and Bid Performance" Journal of The Korea Society of Computer and Information 31.8 pp.253-262 (2026) : 253.
Gi-Do Koo, Myoungsug Chung. The Strategic Value of AI Capability in Public Procurement Markets: Institutional Alignment and Bid Performance. 2026; 31(8), 253-262. Available from: doi:10.9708/jksci.2026.31.08.253
Gi-Do Koo and Myoungsug Chung. "The Strategic Value of AI Capability in Public Procurement Markets: Institutional Alignment and Bid Performance" Journal of The Korea Society of Computer and Information 31, no.8 (2026) : 253-262.doi: 10.9708/jksci.2026.31.08.253
Gi-Do Koo; Myoungsug Chung. The Strategic Value of AI Capability in Public Procurement Markets: Institutional Alignment and Bid Performance. Journal of The Korea Society of Computer and Information, 31(8), 253-262. doi: 10.9708/jksci.2026.31.08.253
Gi-Do Koo; Myoungsug Chung. The Strategic Value of AI Capability in Public Procurement Markets: Institutional Alignment and Bid Performance. Journal of The Korea Society of Computer and Information. 2026; 31(8) 253-262. doi: 10.9708/jksci.2026.31.08.253
Gi-Do Koo, Myoungsug Chung. The Strategic Value of AI Capability in Public Procurement Markets: Institutional Alignment and Bid Performance. 2026; 31(8), 253-262. Available from: doi:10.9708/jksci.2026.31.08.253
Gi-Do Koo and Myoungsug Chung. "The Strategic Value of AI Capability in Public Procurement Markets: Institutional Alignment and Bid Performance" Journal of The Korea Society of Computer and Information 31, no.8 (2026) : 253-262.doi: 10.9708/jksci.2026.31.08.253
