Jinisha K. V., Santhoshkumar |
Abstract
Artificial Intelligence (AI) is emerging as a trans-formative driver of entrepreneurial innovation, yet empirical evidence on its adoption by first-level entrepreneurs in emerging economies remains scarce. This study investigates AI adoption in Kerala, India, through the Technology–Organisation–Environment (TOE) framework. Using snowball sampling, survey data from 240 entrepreneurs and aspiring entrepreneurs were analysed via descriptive statistics, t-tests, ANOVA, correlation, and regression. Findings show that technologically, AI is valued for productivity gains, cost reduction, and decision support, but adoption is constrained by data privacy concerns and regulatory uncertainty. Organisationally, significant skill gaps in data science, machine learning, and programming limit readiness, while partnering with AI experts and targeted training emerge as preferred solutions. Environmentally, unclear regulations and insufficient policy support are major barriers, though access to AI resources boosts adoption intent. This study advances AI entrepreneurship literature by contextualising TOE factors in a developing economy and demonstrating their interplay in shaping adoption readiness. Practical implications include the need for capacity-building programmes, ethical AI guidelines, and supportive policy frameworks to foster sustainable AI integration within entrepreneurial ecosystems.
Keywords: Artificial Intelligence, Entrepreneurship, AI Adoption, TOE Framework, Emerging Economies, Innovation
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