Enhancing entrepreneurial opportunity exploitation through AI: the mediating role of dynamic capabilities

Purpose Artificial intelligence (AI) technologies have widely penetrated the business-related activities affecting the dynamics of business environments, especially in high-tech small and medium-sized enterprises (SMEs). This study aims to assess the mediating role of dynamic capabilities (DCs) in the relationship between AI adaptation (AIA) and opportunity exploitation (OE) within the context of the entrepreneurial ecosystem in Oman. Design/methodology/approach This paper used a quantitative research design online-based survey, which was distributed to entrepreneurs and managers of high-tech SMEs. Empirical data were collected through snowball sampling and yielded a considerable number of responses from 164 SMEs based in Oman. Analysis of the data collected was done with the use of Partial Least Squares Structural Equation Modeling, which is very effective in predictive modeling that entails complex dynamics. Findings It was found that DCs have a mediating effect, whereby the impact of AIA on OE is positive and significant, but this is mediated by DCs. These results highlight that even though AI influences OE through the DCs, the impact is not maximally strong, and other factors can also be critical in determining the OE. Research limitations/implications This study contributes to existing literature by providing empirical evidence on the interplay between AIA, DCs and OE. This study offers valuable insights for policymakers, entrepreneurs and managers aiming to enhance the competitiveness and innovation capacity of SMEs in the rapidly evolving technological landscape. Originality/value Despite the general awareness of AIA and OE among SMEs, little is known about the potential moderating effect of DC between AIA and OE in the context of high-tech SMEs in Oman.