Factors influencing the adoption of artificial intelligence in e-commerce by small and medium-sized enterprises

Abstract

The rapid evolution of technology has fundamentally transformed business operations. Therefore, companies are increasingly leveraging technology to enhance their processes and gain a competitive edge. In this context, the adoption of artificial intelligence (AI) in e-commerce has become a crucial area for business development. However, there is currently a lack of understanding regarding the key factors that determine the adoption of AI in e-commerce by small and medium-sized enterprises. Thus, to fill this gap, this study aims to investigate the factors influencing the adoption of AI tools in e-commerce for SMEs. This study will also explore how the adoption of AI by SMEs contributes to the business performance of these organizations. To achieve this, the study proposes an integrated model based on the dynamic capabilities framework, entrepreneurial orientation, and customer-centric systems. Empirical data for the current study were collected using a digital survey, which was disseminated to a purposive sample of SMEs in Saudi Arabia. Analysis of the collected data was performed using structural equation modeling (SEM), and the results support the role of both dynamic capabilities and entrepreneurial orientation in facilitating the adoption of AI in e-commerce. The study confirms of the significant role of AI adoption in enhancing the business performance of SMEs. This study seeks to make several theoretical contributions and implications for practice. This will also provide small and medium-sized companies with valuable insights that help in making decisions and building strategies. However, it is important to acknowledge the limitations of this study, which will be discussed later in the paper.