article · Technovation
Generative artificial intelligence offers small and medium enterprises an accessible means to reassess business models during severe market disruptions such as pandemics, geopolitical tensions, and economic slowdowns. An empirical survey of 87 French enterprises examined how generative artificial intelligence and entrepreneurial orientation shape entrepreneurial resilience through the framework of dynamic capabilities. The findings demonstrate that both generative artificial intelligence tools and entrepreneurial orientation significantly support the development of entrepreneurial resilience. However, intense market turbulence exerts a negative moderating effect on the relationship between entrepreneurial orientation and resilience. This outcome indicates that dynamic capabilities do not always translate into resilience under extreme volatility, disproving standard linear assumptions regarding how market disruption affects business capabilities and competitive advantage.
Small businesses often struggle to endure severe economic shocks with limited capital. Demonstrating that generative artificial intelligence can bolster resilience helps small firms justify low-cost software adoption during crises. Additionally, knowing that high turbulence can dampen standard entrepreneurial orientation allows managers to rethink crisis strategies rather than relying on flawed assumptions.
The abstract does not indicate an application pathway or a proprietary technology ready for market transfer. It provides survey-based analytical findings concerning the management of small and medium enterprises using generative artificial intelligence tools. While the insights can inform digital strategy advisory services or management consultancy programmes, the work itself is observational research rather than a deployable commercial product.
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Recently, Gen AI has garnered significant attention across various sectors of society, particularly capturing the interest of small business due to its capacity to allow them to reassess their business models with minimal investment. To understand how small and medium-sized firms have utilised Gen AI-based tools to cope with the market's high level of turbulence caused by the COVID-19 pandemic, geopolitical crises, and economic slowdown, researchers have conducted an empirical study. Although Gen AI is receiving more attention, there remains a dearth of empirical studies that investigate how it influences the entrepreneurial orientation of firms and their ability to cultivate entrepreneurial resilience amidst market turbulence. Most of the literature offers anecdotal evidence. To address this research gap, the authors have grounded their theoretical model and research hypotheses in the contingent view of dynamic capability. They tested the research hypotheses using cross-sectional data from a pre-tested survey instrument, which yielded 87 useable responses from small and medium enterprises in France. The authors used variance-based structural equation modelling with the commercial WarpPLS 7.0 software to test the theoretical model. The study's findings suggest that Gen AI and EO have a significant influence on building entrepreneurial resilience as higher-order and lower-order dynamic capabilities. However, market turbulence has a negative moderating effect on the path that joins entrepreneurial orientation and entrepreneurial resilience. The results suggest that the assumption that high market turbulence will have positive effects on dynamic capabilities and competitive advantage is not always true, and the linear assumption does not hold, which is consistent with some scholars' assumptions. The study's results offer significant contributions to the contingent view of dynamic capabilities and open new research avenues that require further investigation into the non-linear relationship of market turbulence.
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DOI: 10.1016/j.technovation.2024.103063
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