Artificial intelligence redefines the source of competitive advantage in recruitment and selection: a resource-based view and dynamic managerial capabilities approach

Purpose This study identifies the critical factors influencing the adoption of artificial intelligence in recruitment processes and examines how such adoption reconfigures the sources of competitive advantage. Design/methodology/approach Drawing on the resource-based view and dynamic managerial capabilities perspectives, we conceptualise managerial capabilities as the applied manifestation of the microfoundations of dynamic managerial capabilities, in the context of artificial intelligence implementation. Data from 245 HR professionals involved in artificial intelligence driven recruitment were analysed using structural equation modelling. Findings HR competency and open innovation, operating through the microfoundations of dynamic managerial capabilities and manifested in managerial capabilities, significantly drive artificial intelligence adoption. Top management support strengthens these relationships by ensuring strategic alignment and resource mobilisation. Artificial intelligence adoption enhances competitive advantage by integrating human expertise with artificial intelligence–enabled capabilities. Research limitations/implications The study does not capture longitudinal dynamics and their generalisability across different cultural and industrial contexts. Practical implications Organisations should build internal capabilities, foster external innovation partnerships and secure leadership commitment to ensure responsible and strategically aligned artificial intelligence adoption. Social implications The adoption of AI in recruitment processes underscores the pivotal role of human-machine collaboration, enhancing HR practices and promoting a competitive edge in the labour market. This shift necessitates a re-evaluation of workforce dynamics and the ethical considerations surrounding AI integration in human resource management. Originality/value This study offers a novel perspective on how intangible resources and managerial capabilities interact to drive artificial intelligence adoption and reshape competitive advantage in recruitment contexts.