How to survive in the age of artificial intelligence? Exploring the intelligent transformations of SMEs in central China
International Journal of Emerging Markets
ISSN: 1746-8809
Article publication date: 29 December 2021
Issue publication date: 16 May 2022
Abstract
Purpose
The purpose of the research is to explore how small and medium enterprises (SMEs) in central China achieve intelligent transformation through the use of artificial intelligence (AI). Because of unequal resource allocation, constraints on the intelligent transformation of SMEs in central China are different from those in economically and technologically well-developed coastal provinces. Hence, the authors focus on SMEs in central China to identify drivers of and barriers to intelligent transformation.
Design/methodology/approach
The interview data were collected from 66 SMEs across 20 industries in central China. To verify the validity of the data collection method, the authors used two methods to control for retrospective bias: multi-level informants and enterprises' AI project application materials (Wei and Clegg, 2020). The final data were validated without conflicts. Next, the authors cautiously followed a two-step approach recommended by Venkatesh et al. (2010) and used NVivo 11.0 to analyze the collected text data.
Findings
SMEs in central China are enthusiastic about intelligent transformation while facing both internal and external pressures. SMEs need to pay attention to both internal (enterprise development needs, implementation cost, human resources and top management involvement) and external factors (external market pressure, convenience of AI technology and policy support) and their different impacts on intelligent transformation. However, constrained by limited resources, SMEs in central China have been forced to take a step-by-step intelligent transformation strategy based on their actual needs with the technological flexibility method in the short term.
Originality/value
Considering the large number of SMEs and their importance in promoting China's economic development and job creation (SME Bureau of MIIT, 2020), more research on SMEs with limited resources is needed. In the study, the authors confirmed that enterprises should handle “social responsibility” carefully because over-emphasizing it will hinder intelligent transformation. However, firms should pay attention to the role of executives in promoting intelligent transformation and make full use of policy support to access more resources.
Keywords
Acknowledgements
This work was supported by the grants from National Natural Science Foundation of China (Project No. 71810107003) and National Social Science Fund of China (Project No. 18ZDA109). This work was also supported by the Modern Information Management Research Center at Huazhong University of Science and Technology. Peng Hu contributes much to this work and he is co-corresponding author.
Citation
Wang, J., Lu, Y., Fan, S., Hu, P. and Wang, B. (2022), "How to survive in the age of artificial intelligence? Exploring the intelligent transformations of SMEs in central China", International Journal of Emerging Markets, Vol. 17 No. 4, pp. 1143-1162. https://doi.org/10.1108/IJOEM-06-2021-0985
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited