AI adoption boosts SME performance through strategic partnerships and change management, study finds
New research published in PJCSS highlights how leadership vision, trading partnerships, and change readiness influence AI-driven growth in Pakistani SMEs.
Bentham Science Publishers
A recent study authored by Dr. Faizan ul Haq and Prof. Dr. Norazah Mohd Suki, published in the Pakistan Journal of Commerce and Social Sciences (Vol. 18, Issue 4), investigates the role of artificial intelligence (AI) adoption in improving the performance of small and medium-sized enterprises (SMEs) in Pakistan’s manufacturing sector.
The research examines how organizational factors—such as leadership vision and change management capability—and environmental factors—like trading partnerships and competitive pressure—affect AI adoption. The study finds that trading partnerships are the most significant driver, followed by change readiness and leadership alignment. Importantly, AI adoption mediates the effect of trading partnerships and competitive pressure on SME performance.
Drawing on 349 valid responses from SME managers and applying the Technology-Organization-Environment (TOE) framework, Resource-Based View (RBV), and Diffusion of Innovations (DoI) theory, the study presents an integrated model for AI-driven transformation in resource-constrained environments.
The findings offer guidance for business leaders and policymakers aiming to support SME competitiveness under Industry 4.0. Recommendations include promoting inter-organizational collaborations, strengthening internal readiness, and enabling AI adoption through targeted support mechanisms.
Citation:
ul Haq, F., & Mohd Suki, N. (2024). Mediating Role of AI Adoption Between the Relationship of Leadership Vision, Change Management Capability, Competitive Pressure, Trading Partnerships, and SME Performance. Pakistan Journal of Commerce and Social Sciences, 18(4), 872–892.
Access the publication:
https://hdl.handle.net/10419/308827
License: CC BY-NC 4.0
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