The Impact of Generative AI Servitization on Reward Mix Evaluation: The Equivocal Role of Job Demand and Job Resource

ABSTRACT The advent of generative AI has permeated industries, with its direct impact on employees' jobs and work performance widely anticipated. Although studies have examined the cognitive and psychological impact of AI‐embedded servitization, the evaluation of employees' rewards in relation to their organizational job‐oriented perceptivity has received very little attention. This is critical, especially for small and medium‐sized enterprises, where rewards significantly impact employee performance. The current study addresses this issue through a modular design that measures the direct and indirect effects of job‐oriented positive and negative factors on employees' evaluation of their reward mix. The study draws on a combined theoretical background in digital servitization theory and the job demands–resources (JD–R) theory to examine the direct impact of generative AI implementation on reward evaluation and the effect of job demand‐ and job resource‐oriented factors on this relationship. The survey method was used, and responses were collected from 329 manufacturing‐based SMEs. The data analysis was conducted using structural equation modeling. The results showed a significant impact of the direct and moderate hypotheses on employees' evaluation of perceived complexity in the reward mix. However, it also shows that perceptivity towards acquired job independence does not significantly affect the relationship between the serviceization and reward mix evaluation. The study provides several new contributions from conceptual, theoretical, and managerial perspectives. It extends the conceptualization of job demand‐resources theory through the pioneer model design, which integrates digital servitization to examine the impact of generative AI implementation. It equips the SME managerial fraternity with a practical understanding of reward mix evaluation. The study provides new managerial implications for servitization and job design to enable a more effective reward orientation for organizational staff.