Artificial Intelligence Adoption and Entrepreneurial Performance: Digital Capability as a Conversion Mechanism
DOI:
https://doi.org/10.59890/ijist.v4i9.56Keywords:
Artificial Intelligence, Digital Capability, Entrepreneurial Orientation, Entrepreneurial Performance, Entrepreneurship.Abstract
This study examines how artificial intelligence adoption translates into entrepreneurial performance through digital capability and whether entrepreneurial orientation strengthens this pathway. Survey data from 300 Indonesian entrepreneurs and business managers using digital technologies were analyzed using PLS-SEM in SmartPLS 4. Artificial intelligence adoption positively affected entrepreneurial performance and digital capability, while digital capability improved performance and significantly mediated the adoption-performance relationship. Entrepreneurial orientation did not significantly moderate either the digital capability-performance relationship or the indirect effect. The findings show that artificial intelligence creates business value primarily when entrepreneurs possess capabilities to integrate digital tools, data, and processes. The study offers applied implications for entrepreneurship development, SME digitalization, and capability-building programs in emerging economies.
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