Exploring Generative AI Adoption in Entrepreneurial Ventures through the TOE Framework

Utilizing the Technology-Organization-Environment (TOE) framework, this research explores the critical factors and potential opportunities associated with the adoption of Generative Artificial Intelligence in entrepreneurial ventures. A revised TOE framework is proposed by conducting a two-stage mixed-method approach, starting with an exploratory qualitative empirical study with semi-structured interviews with experts in the startup ecosystem, reaffirming some established findings while integrating newly identified contextual factors. A subsequent quantitative analysis based on a survey among entrepreneurs reveals that while all identified factors influence GenAI adoption, their impact varies. The most notable opportunities emerging from GenAI include enhanced creative processes and cost reduction opportunities applying GenAI in startups. The findings of this study offer valuable insights for entrepreneurs, policymakers, and researchers, providing a strategic framework to foster successful adoption and maximize the potential of GenAI applications in entrepreneurial settings.