How Does the Adoption of Generative AI Affect the Speed of Strategic Decision-Making and Innovation Performance in SMEs?

Abstract This study investigates the impact of generative artificial intelligence (AI) acceptance on strategic decision-making speed and innovation performance within small and medium-sized enterprises (SMEs). The research utilizes data collected through a cross-sectional survey of 392 SME employees. The collected data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The findings indicate significant relationships between generative AI acceptance and both innovation performance and strategic decision-making speed in SMEs. In particular, mediation analyses reveal that strategic decision-making speed acts as a partial mediator in the relationship between generative AI acceptance and innovation performance, suggesting that higher performance enhances employees’ work pace, thereby strengthening their propensity to adopt AI technologies. These results contribute to a deeper understanding of the dynamics of AI integration in organizational contexts and offer valuable insights for SME managers and policymakers. The study provides meaningful implications for how AI acceptance can influence business processes, strategic decision-making, and innovation outcomes, highlighting the complex and nuanced effects of AI adoption on organizational performance and innovation.