Towards a framework for successful metaverse adoption in Small and Medium-sized Enterprises: An exploratory study

Abstract

The digital transformation of our physical lives, driven by cutting-edge technologies like AI, 5G, and Extended Reality, is rapidly unfolding through the metaverse. This study investigates the factors influencing the adoption intention of the metaverse and its impact on small and medium-sized enterprises (SMEs) performance, employing the technology-organization-environment (TOE) framework. A cross-sectional analysis involving 173 owners/senior managers of SMEs in Canada was conducted to develop a conceptual model. Exploratory factor analysis and Cronbach’s alpha were employed to assess the questionnaire’s validity and reliability. Correlation, regression analysis, and Baron and Kenny’s method were used to evaluate relationships and mediation effects. The findings revealed seven significant factors influencing SMEs’ metaverse adoption intention. Notably, anxiety, security, and privacy did not impact adoption intention. Conversely, a positive correlation emerged between metaverse adoption intention and SME performance. The study demonstrated that metaverse adoption intention fully mediated the relationship between predictors and performance, with the indirect effect moderated by relationship qualities (RQs) like service experience and customer engagement. These insights provide decision-makers with valuable guidance for prioritizing essential factors crucial for successful metaverse technology implementation in SMEs.