Factors and moderators influencing artificial intelligence adoption by Jordanian MSMEs

Abstract

Purpose

This study aims to investigate the factors influencing the adoption intention of artificial intelligence (AI) by micro, small and medium enterprises (MSMEs) in Jordan.

Design/methodology/approach

The study adopts the technology–organization–environment (TOE) model. It examines the moderating effects of innovation culture, employee digital skill level and market competition on the relationships between the independent and dependent variables. A survey was utilized to collect data from 537 MSME owners or managers in Jordan and employed partial least squares structural equation modeling to test the hypotheses.

Findings

The results of the study support seven out of eight hypotheses. Business innovativeness, management support, perceived benefits and technological infrastructure have positive and significant effects on AI adoption intention, while perceived costs have no significant effect. However, the innovation culture, employee digital skill level and market competition were found to moderate the relationships between some of the independent variables and dependent variables.

Practical implications

The study provides valuable insights and recommendations for MSME owners, managers, employees, policymakers, educators and researchers interested in promoting and facilitating AI adoption by MSMEs in Jordan.

Originality/value

The current attempt extends the TOE framework by adding significant constructs representing the three contexts. Moreover, it is one of the few studies that analyzed the factors influencing the adoption intention of AI by MSMEs in Jordan, which are significant to the Jordanian economy and represent 99.5% of enterprises.

Citation

Abaddi, S. (2024), "Factors and moderators influencing artificial intelligence adoption by Jordanian MSMEs", Management & Sustainability: An Arab Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MSAR-10-2023-0049