The Impact of Augmented Reality on Data-Driven Innovation Capabilities In Enhancing Customer Interaction: An Applied Study
DOI:
https://doi.org/10.47134/aaem.v3i2.1064Keywords:
data-driven innovation capabilities, Customer Interaction, Noor Al-Kafeel CompanyAbstract
The research aims to measure the impact of augmented reality on data-driven innovation capabilities (DDI) in enhancing Customer Interaction (CI) among employees at Nour Al-Kafeel Company, as the research variables represent an aspect that has not been sufficiently studied in the current literature. This objective was set to address the problem faced by the company, which was formulated in an important question: (Is there an impact of augmented reality on DDI in enhancing CI among the company's employees?). To address the problem, the research developed a questionnaire tool to collect the necessary data about employees and the levels of the research variables. A total of 100 survey forms were distributed, of which 83 were returned, 7 of them damaged and 76 valid for analysis, resulting in a response rate of 76%. For data analysis, the statistical package (SPSS & AMOS) was used, and after the analysis, the results showed that there is a correlation and influence between augmented reality, DDI, and CI. This highlights Noor Al-Kafeel Company's interest in revealing information related to its products by granting customers the right to compensation and discounts when exposed to the resulting risks. Noor Al-Kafeel Company is also keen to enhance CI by revealing innovation marketing ideas, which motivates customers to engage, repeat purchases, and enrich themselves with sufficient information about these products, encouraging them to try and satisfy their intrinsic desires. Based on this, the study recommended that Noor Al-Kafeel Company focus on using the principles of motivation, compensation, and rewards by investing in innovation ideas that lead to development and steering the company to safety, making it a leading company in the labour market and the first among competing companies in the same sector, which directs the maximum possible number of customers towards adopting and using its products available in the labour market.
References
Adam, M., Wessel, M., & Benlian, A. (2021). AI-based chatbots in customer service and their effects on user compliance. Electronic markets, 31(2), 427-445.
Akter, S., McCarthy, G., Sajib, S., Michael, K., Dwivedi, Y. K., D’Ambra, J., & Shen, K. N. (2021). Algorithmic bias in data-driven innovation in the age of AI. International Journal of Information Management, 60, 102387.
Akter, S., Sultana, S., Gunasekaran, A., Bandara, R. J., & Miah, S. J. (2024). Tackling the global challenges using data-driven innovations. Annals of Operations Research, 333(2), 517-532.
Alaskar, T. H. (2025). Data-driven innovation and innovation ambidexterity for sustaining firm resilience: the mediating role of BA capabilities and digital culture. Discover Sustainability, 6(1), 888.
Alghamdi, O., & Agag, G. (2024). Competitive advantage: A longitudinal analysis of the roles of data-driven innovation capabilities, marketing agility, and market turbulence. Journal of Retailing and Consumer Services, 76, 103547.
Alghizzawi, M., Megdadi, Y., AlWadi, B. M., Zahran, I., & Megdad, Z. (2024). The impact of digital marketing on customer interaction: Electronic fashion sales stores. In Artificial Intelligence (AI) and Customer Social Responsibility (CSR) (pp. 569-579). Cham: Springer Nature Switzerland.
AlHarbi, A., Heavin, C., & Carton, F. (2016). Improving customer oriented decision making through the customer interaction approach. Journal of Decision systems, 25(sup1), 50-63.
Al-Khatib, A. W. (2025). How big data-driven organizational capabilities shape innovation performance? An empirical study from small and medium manufacturing enterprises. Kybernetes, 54(1), 456-482.
Awan, U., Shamim, S., Khan, Z., Zia, N. U., Shariq, S. M., & Khan, M. N. (2021). Big data analytics capability and decision-making: The role of data-driven insight on circular economy performance. Technological Forecasting and Social Change, 168, 120766.
Baashar, Y., Alhussian, H., Patel, A., Alkawsi, G., Alzahrani, A. I., Alfarraj, O., & Hayder, G. (2020). Customer relationship management systems (CRMS) in the healthcare environment: A systematic literature review. Computer standards & interfaces, 71, 103442.
Babu, M. M., Rahman, M., Alam, A., & Dey, B. L. (2024). Exploring big data-driven innovation in the manufacturing sector: evidence from UK firms. Annals of Operations Research, 333(2), 689-716.
Babu, M. M., Rahman, M., Alam, A., & Dey, B. L. (2024). Exploring big data-driven innovation in the manufacturing sector: evidence from UK firms. Annals of Operations Research, 333(2), 689-716.
Bell, R. Q. (2020). Contributions of human infants to caregiving and social interaction. Childhood socialization, 103-122.
Bhatti, S. H., Hussain, W. M. H. W., Khan, J., Sultan, S., & Ferraris, A. (2024). Exploring data-driven innovation: what’s missing in the relationship between big data analytics capabilities and supply chain innovation?. Annals of Operations Research, 333(2), 799-824.
Cachero-Martínez, S., García-Rodríguez, N., & Salido-Andrés, N. (2024). Because I'm happy: exploring the happiness of shopping in social enterprises and its effect on customer satisfaction and loyalty. Management Decision, 62(2), 492-512.
Cao, Y., Zhou, Z., & Majeed, S. (2021). Stimulating customer inspiration through online brand community climates: the mediating role of customer interaction. Frontiers in Psychology, 12, 706889.
Chang, Y. W., Hsu, P. Y., Chen, J., Shiau, W. L., & Xu, N. (2023). Utilitarian and/or hedonic shopping–consumer motivation to purchase in smart stores. Industrial Management & Data Systems, 123(3), 821-842.
Chatterjee, S., Chaudhuri, R., & Vrontis, D. (2024). Does data-driven culture impact innovation and performance of a firm? An empirical examination. Annals of Operations Research, 333(2), 601-626.
Chen, Y., Li, J., & Zhang, J. (2024). Digitalisation, data-driven dynamic capabilities and responsible innovation: An empirical study of SMEs in China. Asia pacific journal of management, 41(3), 1211-1251.
Cheung, M. L., Pires, G., Rosenberger, P. J., and De Oliverira, M. J. (2020a). Driving consumer–brand engagement and co-creation by brand interactivity. Mark. Intell. Plan. 38, 523–541. doi: 10.1108/MIP-12-2018-0587
Christodoulou, I., Utomo Putranto, S., Haj Youssef, M., Simillidou, A., & Chovancová, J. (2025). Strategic scaling initiatives and client networking dynamics for small and medium-sized enterprises growth: a comprehensive case study analysis. Journal of Trade Science, 13(1), 3-22.
Coelho, A., Bairrada, C., and Peres, F. (2019). Brand communities’ relational outcomes, through brand love. J. Prod. Brand Manag. 28, 154–165. doi: 10.1108/JPBM-09-2017-1593
Czeszumski, A., Eustergerling, S., Lang, A., Menrath, D., Gerstenberger, M., Schuberth, S., ... & König, P. (2020). Hyperscanning: a valid method to study neural inter-brain underpinnings of social interaction. Frontiers in Human Neuroscience, 14, 39.
Dinter, B., Kollwitz, C., & Fritzsche, A. (2017). Teaching Data Driven Innovation-Facing a Challenge for Higher Education. In AMCIS.
Eckert, C., Neunsinger, C., & Osterrieder, K. (2022). Managing customer satisfaction: digital applications for insurance companies. The Geneva Papers on Risk and Insurance-Issues and Practice, 47(3), 569-602.
Eriksson, T., & Heikkilä, M. (2023). Capabilities for data-driven innovation in B2B industrial companies. Industrial Marketing Management, 111, 158-172.
Eriksson, T., & Heikkilä, M. (2023). Capabilities for data-driven innovation in B2B industrial companies. Industrial Marketing Management, 111, 158-172.
Ghosh, S. (2025). Developing artificial intelligence (AI) capabilities for data-driven business model innovation: Roles of organizational adaptability and leadership. Journal of Engineering and Technology Management, 75, 101851.
Guerola-Navarro, V., Gil-Gomez, H., Oltra-Badenes, R., & Sendra-García, J. (2021). Customer relationship management and its impact on innovation: A literature review. Journal of Business Research, 129, 83-87.
Guerola-Navarro, V., Gil-Gomez, H., Oltra-Badenes, R., & Soto-Acosta, P. (2024). Customer relationship management and its impact on entrepreneurial marketing: A literature review. International Entrepreneurship and Management Journal, 20(2), 507-547.
Heinonen, K., Jaakkola, E., & Neganova, I. (2018). Drivers, types and value outcomes of customer-to-customer interaction: An integrative review and research agenda. Journal of Service Theory and Practice, 28(6), 710-732.
Huang, D., Markovitch, D. G., & Stough, R. A. (2024). Can chatbot customer service match human service agents on customer satisfaction? An investigation in the role of trust. Journal of Retailing and Consumer Services, 76, 103600.
Ismagilova, E., Hughes, L., Rana, N. P., & Dwivedi, Y. K. (2022). Security, privacy and risks within smart cities: Literature review and development of a smart city interaction framework. Information Systems Frontiers, 24(2), 393-414.
Jetzek, T., Avital, M., & Bjorn-Andersen, N. (2014). Data-driven innovation through open government data. Journal of theoretical and applied electronic commerce research, 9(2), 100-120.
Kedi, W. E., Ejimuda, C., Idemudia, C., & Ijomah, T. I. (2024). AI Chatbot integration in SME marketing platforms: Improving customer interaction and service efficiency. International Journal of Management & Entrepreneurship Research, 6(7), 2332-2341.
Khan, R. U., Salamzadeh, Y., Iqbal, Q., & Yang, S. (2022). The impact of customer relationship management and company reputation on customer loyalty: The mediating role of customer satisfaction. Journal of Relationship Marketing, 21(1), 1-26.
Kissi, P. S. (2024). Examine the influence of collaborative business culture and data-driven analytic capability on business innovation: Moderation role of managerial capability. Business Information Review, 41(3), 110-123.
Kolhar, M., Kazi, R. N. A., & Alameen, A. (2021). Effect of social media use on learning, social interactions, and sleep duration among university students. Saudi journal of biological sciences, 28(4), 2216-2222.
Lee, D. (2020). Untact: a new customer service strategy in the digital age. Service business, 14(1), 1-22.
Lee, V. H., Dwivedi, Y. K., Tan, G. W. H., Ooi, K. B., & Wong, L. W. (2024). How does information technology capabilities affect business sustainability? The roles of ambidextrous innovation and data‐driven culture. R&D Management, 54(4), 750-774.
Liu, Y., Shao, Z., & Hoffmann, N. (2021). Global attention mechanism: Retain information to enhance channel-spatial interactions. arXiv preprint arXiv:2112.05561.
Monfort, A., López-Vázquez, B., & Sebastián-Morillas, A. (2025). Building trust in sustainable brands: revisiting perceived value, satisfaction, customer service, and brand image. Sustainable Technology and Entrepreneurship, 100105.
Nethanani, R., Vuko, S. N., & Thango, B. (2024). Customer Relationship Management (CRM) systems and their impact on SMEs performance: A systematic review. Siphethuxolo N. and Thango, Bonginkosi, Customer Relationship Management (CRM) Systems and their Impact on SMEs Performance: A Systematic Review (October 21, 2024).
Nicholls, R. (2011). Customer‐to‐customer interaction (CCI): A cross‐cultural perspective. International Journal of Contemporary Hospitality Management, 23(2), 209-223.
Nicholls, R., & Gad Mohsen, M. (2019). Managing customer-to-customer interaction (CCI)–insights from the frontline. Journal of Services Marketing, 33(7), 798-814.
Nicolescu, L., & Tudorache, M. T. (2022). Human-computer interaction in customer service: the experience with AI chatbots—a systematic literature review. Electronics, 11(10), 1579.
Oham, C., & Ejike, O. G. (2024). Customer interaction and engagement: A theoretical exploration of live promotional tactics in the arts. Unpublished.
Pietronudo, M. C., Zhou, F., Caporuscio, A., La Ragione, G., & Risitano, M. (2022). New emerging capabilities for managing data-driven innovation in healthcare: the role of digital platforms. European Journal of Innovation Management, 25(6), 867-891.
Rachmad, Y. E. (2024). From Traditional To Digital: The Evolution Of Buyer And Seller Interactions.
Rane, N., Choudhary, S., & Rane, J. (2023). Hyper-personalization for enhancing customer loyalty and satisfaction in Customer Relationship Management (CRM) systems. Available at SSRN 4641044.
Ravat, L., Hemonnet-Goujot, A., & Hollet-Haudebert, S. (2024). Exploring how to develop data-driven innovation capability of marketing within B2B firms: Toward a capability model and process-oriented approach. Industrial Marketing Management, 118, 110-125.
Sheth, J. N., Jain, V., & Ambika, A. (2023). The growing importance of customer-centric support services for improving customer experience. Journal of Business Research, 164, 113943.
Smith, T. L., & Moore, E. B. (2020, April). Storytelling to sensemaking: A systematic framework for designing auditory description display for interactives. In Proceedings of the 2020 CHI conference on human factors in computing systems (pp. 1-12).
Subagja, A. D., Ausat, A. M. A., Sari, A. R., Wanof, M. I., & Suherlan, S. (2023). Improving customer service quality in MSMEs through the use of ChatGPT. Jurnal Minfo Polgan, 12(1), 380-386.
Sultana, S., Akter, S., & Kyriazis, E. (2022). How data-driven innovation capability is shaping the future of market agility and competitive performance?. Technological Forecasting and Social Change, 174, 121260.
Sultana, S., Akter, S., & Kyriazis, E. (2024). Theorising data-driven innovation capabilities to survive and thrive in the digital economy. Journal of Strategic Marketing, 32(7), 864-890.
Vrtana, D., & Krizanova, A. (2023). The power of emotional advertising appeals: Examining their influence on consumer purchasing behavior and brand–customer relationship. Sustainability, 15(18), 13337.
Wang, Y., Song, M., & Zhang, H. (2025). Explorative or exploitative innovation? The moderating effect of big data marketing capability. Journal of Business & Industrial Marketing, 40(4), 1065-1083.
Wong, D. T., & Ngai, E. W. (2024). Linking data-driven innovation to firm performance: a theoretical framework and case analysis. Annals of operations research, 333(2), 999-1018.
Wong, D. T., & Ngai, E. W. (2025). The effects of analytics capability and sensing capability on operations performance: the moderating role of data-driven culture. Annals of Operations Research, 350(2), 781-816.
Żyminkowska, K., & Zachurzok-Srebrny, E. (2025). The role of artificial intelligence in customer engagement and social media marketing—Implications from a systematic review for the tourism and hospitality sectors. Journal of Theoretical and Applied Electronic Commerce Research, 20(3), 184.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Khalid Kadhim Mohammed

This work is licensed under a Creative Commons Attribution 4.0 International License.

