Re-examining AI Adoption Antecedents and Its Potential Effect on AI Sustained Use in Small and Medium Enterprises (SMEs)

This study investigates the adoption of Artificial Intelligence (AI) within the Small and Medium Enterprises (SMEs) sector in Malaysia, employing the well-established Technology-Organization-Environment (TOE) framework as its conceptual foundation. Through an exploration of nine propositions derived from the TOE framework, encompassing factors such as perceived relative advantage, complexity hurdles, top management support, technological proficiency, financial preparedness, market dynamics influence, regulatory facilitation, competitive pressures, and the critical connection between adoption intention and sustained utilization, this research offers a nuanced understanding of the drivers and inhibitors shaping AI adoption behaviors among Malaysian SMEs. The analysis delves into each proposition, elucidating the nuanced interplay between technological, organizational, and environmental factors influencing AI adoption intentions within Malaysian SMEs. Factors such as the perceived benefits of AI relative to existing practices, the challenges posed by the complexity of AI systems, the pivotal role of top management support, and the importance of technological readiness emerge as central themes in shaping SMEs intentions to adopt AI. Moreover, the study underscores the significance of financial considerations, market dynamics, regulatory frameworks, and competitive pressures in influencing SMEs; AI adoption trajectories. It highlights the need for tailored interventions and supportive ecosystems to address barriers to adoption and foster a conducive environment for AI integration within Malaysian SMEs. Ultimately, the findings emphasize the imperative of strategic and sustainable AI adoption practices among Malaysian SMEs, with implications for enhancing competitiveness, driving innovation, and unlocking new growth opportunities in the rapidly evolving digital economy landscape. By leveraging these insights and collaborative efforts across stakeholders, Malaysian SMEs can position themselves at the forefront of AI-driven transformation, propelling economic growth and prosperity in the digital age.