Toward open innovation: An integrated model of artificial intelligence adoption in export-oriented textile small and medium-sized enterprises
Export-oriented manufacturing small and medium-sized enterprises (SMEs) in emerging economies are experiencing escalating cost volatility, regulatory unpredictability, and sustainability compliance pressures, all of which are reshaping their digital transformation decisions. Despite the extensive marketing of artificial intelligence (AI) as an innovation driver and source of competitiveness, little evidence exists on the relationship between AI adoption and post-adoption innovation outcomes under crisis situations. This study designs and empirically tests the combined Technology Acceptance Model–Technology–Organization–Environment model to explain AI adoption and its effects on open innovation performance. Green knowledge management (GKM) is examined as the moderating boundary condition. The survey data of 400 export-oriented textile SMEs from Pakistan were analyzed using partial least squares structural equation modeling. The findings indicate that perceived usefulness and perceived ease of use are core predictors of AI adoption, with top management support, resource availability, competitive pressure, and the regulatory environment playing a major role in shaping perceptions. AI adoption is a post-adoption capability that significantly drives open innovation performance, indicating that it can help overcome cost and compliance pressures for collaboration and knowledge sharing. However, GKM does not significantly mediate this relationship, suggesting that resource-poor SMEs still lack strong institutionalization of sustainability knowledge. The research adds to AI adoption theory by introducing and extending perceptual and contextual explanations and shifting the focus to innovation outcomes after adoption. In practice, the findings indicate that while AI can increase innovation resilience in crisis-affected SMEs, sustainable innovation gains require investments in digital and sustainability expertise, along with data management, that go beyond digitalization for compliance purposes.
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