From GenAI-enabled knowledge creation to SME digital transformation: the mediating role of entrepreneurial innovativeness

Purpose This study aims to examine how generative artificial intelligence (GenAI)-enabled knowledge creation processes influence entrepreneurial knowledge co-creation and small and medium-sized enterprise (SME) digital transformation through entrepreneurial general innovativeness and entrepreneurial specific innovativeness. Design/methodology/approach Drawing on the socialization, externalization, combination and internalization (SECI) knowledge creation framework, the study develops and tests a mediation model linking GenAI internalization (GAI), GenAI externalization (GAE), GenAI socialization (GAS) and GenAI combination (GAC) with SME outcomes. Data was collected from 391 SME respondents and analysed using covariance-based structural equation modelling in analysis of moment structures. Findings The findings show that GAI, GAE and GAC significantly enhance both entrepreneurial general innovativeness and entrepreneurial specific innovativeness. GAS significantly influences entrepreneurial specific innovativeness but does not significantly affect entrepreneurial general innovativeness. Both forms of entrepreneurial innovativeness positively influence entrepreneurial knowledge co-creation and SME digital transformation. Mediation results further show that entrepreneurial general innovativeness mediates the effects of GAI, GAE and GAC, while entrepreneurial specific innovativeness provides a more consistent mediating pathway across GenAI-enabled knowledge processes. Practical implications SME managers should use GenAI not merely for automation or content generation, but for learning, knowledge articulation, knowledge integration, innovation adoption and digital transformation. Originality/value The study advances GenAI entrepreneurship research by showing how GenAI-enabled SECI processes create SME value through entrepreneurial innovativeness.