Investment innovation, artificial intelligence adoption and dynamic capabilities: Basis for agile innovation framework for IT driven SMEs

The study explored the relationship between investment innovation, artificial intelligence adoption and dynamic capabilities to enhance an agile innovative performance of IT driven SMEs.By examining this relationship, this study contributed to a deeper understanding of the factors that contributes to organizational success in a dynamic and competitive business environment.The descriptive design provided a solid foundation for exploring the complex relationships between investment innovation, AI adoption, dynamic capabilities, and agile innovation in IT-based SMEs.It allowed to delve deeper into the current state of the variables understudy.The survey questionnaire was the data gathering tool used in the study as it allowed for statistical analysis to identify relationships and trends that provided valuable insights on these variables.The 400 managers and employees of five Technology SMEs were used as respondents.Results of the study showed moderate agreement on the technology companies' investment innovation as to willingness to invest, ability to invest and its benefits to the company.The respondents generally agreed on AI adoption as to scope, purpose, acceptance and risks.They also generally agreed that dynamic capabilities were essential in fostering a culture of innovation and change, building relationships with key stakeholders and making strategic resource investments.Significant relationships were found among investment innovation, artificial intelligence adoption and dynamic capabilities.An agile innovation framework for IT Driven SMEs was developed to compete effectively in a dynamic market.By providing a comprehensive understanding of the factors influencing agile innovation in IT-based SMEs, the study can contribute to the growth and competitiveness of the IT sector and inform evidence-based policy development.