The Interplay of AI Adoption, IoT Edge, and Adaptive Resilience to Explain Digital Innovation: Evidence from German Family-Owned SMEs

Abstract

This study aims to discover how artificial intelligence adoption in notion (AI) plays a role in digital innovation using the theoretical foundation of diffusion of innovations and effectuation theories. The current research also investigates the moderating role of other edge Internet of Things (IoT) and the mediating role of adaptive resilience. The data collection is performed using a survey conducted among employees of family-owned SMEs. The findings reveal that AI forecasts digital innovation through adaptive resilience. The results also confirm the moderating role of threat to IoT edge and the mediating role of adaptive resilience, but moderated mediating is not supported. We conclude that family-owned SMEs intend to adopt AI, but SMEs face challenges using IoT edge. This study has implications for family firms specifically and technology adopters in general.

Integration of Smart City Technology and Business Model Innovation

“…The external factors are associated with new market opportunities [47,50], institutional change [44], technological innovation [31,35,43], and other perspectives of the industry [34]. These studies are associated with the energy sector [50], manufacturing companies [30], family businesses [48], and technology start-ups [49].…”

“…Transformative sustainable business models [46] 2023 action research Motivations and challenges of using IoT sensors to reduce food waste [47] 2023 mixed study The interplay of artificial intelligence, the IoT edge, and impact resilience [48] 2022 questionnaire Technology startup business models utilizing knowledge management systems [49] 2022 interview Business model innovation in the energy sector [50] •…”

Interplay of entrepreneurial failure experience, entrepreneurial resilience, and re-entrepreneurship performance: Evidence from China

“…Secondly, the exploration of additional mediating variables between entrepreneurial failure experiences and re-entrepreneurship performance can provide a more comprehensive understanding of the impact mechanisms. Lastly, interdisciplinary collaborative research can be conducted, considering the widespread application of artificial intelligence, especially its role in enterprises [33] , using diverse research methods from different disciplines to study entrepreneurs' experiences of failure. This will enrich theoretical research and provide practical guidance for entrepreneurial practice.…”

Digital economy and urban economic resilience: The mediating role of technological innovation and entrepreneurial vitality

“…Saleem et al(2023) revealed that AI adoption strengthens adaptive resilience and moderates the role of IoT edge in German family-owned SMEs [ 18 ]. Ghobakhloo (2020) identifies factors influencing the implementation of Information and Digital Technologies (IDT) in smart manufacturing and highlights the importance of digital technology and management support [ 19 ]. Skare et al(2023) used the Digital Economy and Society Index (DESI) to explore how digital transformation impacts SMEs and found SMEs benefit from the collective pool of digital knowledge [ 20 ].…”