AI Adoption in SMEs in Pakistan: A Review of TOE framework
DOI:
https://doi.org/10.63468/sshrr.277Keywords:
AI Adoption, TOE Framework, SMEs, Technological Factors, Organizational Factors, Environmental FactorsAbstract
The rapid evolution of Artificial Intelligence (AI) has profoundly transformed the global business landscape, offering organizations new opportunities to enhance operational efficiency, agility, and competitiveness. Small and Medium Enterprises have been gaining competitive edge in the developed economies, but SMEs in developing countries are still facing different challenges in terms of technical, organizational, and environmental regarding AI adoption. Based on TOE, the study investigated the effects of technological, organizational, and environmental factors on AI adoption by SMEs in Pakistan. Data was collected from 341 SMEs employees through structured questioner using convenience sampling and analyzed via smart pls. The study showed a negative impact of technological factors along with positive effect of organizational and environmental factors on AI adoption in SMEs in Pakistan. The was among primary studies conducted to evaluate the AI adoption challenges in developing economies. The study suggested some comparative studies along with longitudinal studies in future.
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Copyright (c) 2025 Mehboob Ahmed, Syed Qasim Hassan Shah Bokhari, Ahsin Ali, Ijaz Mohsin Khokhar, Mariyam, Dr. Iqbal Hussain
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