Impact of augmented reality on operational performance: the mediating role of process innovativeness

Purpose The purpose of this paper is to investigate the relationships between augmented reality, process innovativeness and operational performance. Design/methodology/approach This research is based on a quantitative approach using a questionnaire survey from a total of 117 firms in the automotive sector. The hypothesized relationships are tested using partial least square structural equation modeling (PLS-SEM). Findings This study demonstrates that augmented reality is positively associated with process innovativeness, and process innovativeness is positively related to operational performance. Furthermore, it is found that process innovativeness fully mediates the relationship between augmented reality and operational performance. Originality/value Although augmented reality attracts great attention from academics and practitioners, the current literature lacks an empirical investigation on how augmented reality creates value for the business. Addressing this crucial gap, this research is the first attempt to empirically reveal the role of augmented reality in facilitating process innovativeness and also unearthing how augmented reality improves operational performance. Therefore, this study offers novel insights into the role of augmented reality in business and provides theoretical and managerial contributions.