IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v10y2026i3p2154-2164.html

Artificial Intelligence in Small and Medium Enterprises: Its Influence on Business Performance in the Bangsamoro Autonomous Region in Muslim Mindanao

Author

Listed:
  • Raffeq Salipada Alim

    (Cotabato State University)

Abstract

Artificial intelligence (AI) is a key driver of digital transformation, yet its adoption among small and medium enterprises (SMEs) remains uneven, particularly in developing regions. This study examined the readiness of SMEs in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), Philippines, to adopt AI and its relationship with business performance using the Technology–Organization–Environment (TOE) framework. A quantitative descriptive–correlational design was employed, with data collected from 150 SME owners and managers, and analyzed using descriptive statistics and Pearson correlation. The results indicate that SMEs demonstrate moderate technological and organizational readiness but low environmental readiness, reflecting limited external support and market demand. Business performance was also found to be moderate, suggesting that AI adoption yields incremental improvements in operational and economic outcomes. Correlation analysis revealed that AI readiness is significantly associated with business performance, with organizational readiness showing the strongest influence. The study concludes that SMEs are in a transitional stage of digital transformation, where internal capabilities play a more critical role than external factors, and emphasizes the need to strengthen human capital, technological capacity, and institutional support to enhance AI adoption and competitiveness.

Suggested Citation

  • Raffeq Salipada Alim, 2026. "Artificial Intelligence in Small and Medium Enterprises: Its Influence on Business Performance in the Bangsamoro Autonomous Region in Muslim Mindanao," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(3), pages 2154-2164, March.
    • Handle: RePEc:bcp:journl:v:10:y:2026:i:3:p:2154-2164
    as

    Download full text from publisher

    File URL: https://rsisinternational.org/journals/ijriss/uploads/vol10-iss3-pg2154-2164-202603_pdf.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/view/artificial-intelligence-in-small-and-medium-enterprises-its-influence-on-business-performance-in-the-bangsamoro-autonomous-region-in-muslim-mindanao/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dwivedi, Yogesh K. & Hughes, Laurie & Ismagilova, Elvira & Aarts, Gert & Coombs, Crispin & Crick, Tom & Duan, Yanqing & Dwivedi, Rohita & Edwards, John & Eirug, Aled & Galanos, Vassilis & Ilavarasan, , 2021. "Artificial Intelligence (AI): Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research, practice and policy," International Journal of Information Management, Elsevier, vol. 57(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Meenakshi Murugappan & Bavani Ramayah & Logaiswari Indiran & Jayakumar Raj, 2026. "AI Adoption among Manufacturing SMEs in Malaysia: Interview Insights from A TOE Perspective," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(4), pages 5769-5781, April.
    2. Joan Torrent‐Sellens & Mihaela Enache‐Zegheru & Pilar Ficapal‐Cusí, 2025. "Promoting the European Sustainable Firm: How Economic, Social, and Green Innovation and the AI‐Based Technologies Create Pathways of Social and Environmental Sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 34(7), pages 9093-9119, November.
    3. Kashyap, Abhishek & Shukla, Om Ji & Kumar, Rupesh & Alam, Md Mahmudul & Oberoi, Sarbjit Singh, 2025. "Online retailing and the metaverse: Addressing stakeholder impediments in e-commerce," Journal of Retailing and Consumer Services, Elsevier, vol. 84(C).
    4. Ayala, Néstor Fabián & Rodrigues da Silva, Jassen & Cannarozzo Tinoco, Maria Auxiliadora & Saccani, Nicola & Frank, Alejandro G., 2025. "Artificial Intelligence capabilities in Digital Servitization: Identifying digital opportunities for different service types," International Journal of Production Economics, Elsevier, vol. 284(C).
    5. Eunice Ngozi Ajuluchukwu & Usani Joseph Ofem & Stephen Undie & Mecry Akeke & Eno E. Elogbo & Fabian Ugbe Udida & Patricia Akwaya Olom & Mary Rose Eze & Bessong Bessong, 2026. "Exploring the impact of green human resource management practices enabled by artificial intelligence on organizational sustainability: the mediating roles of digital literacy and green organizational climate," International Journal of Corporate Social Responsibility, Springer, vol. 11(1), pages 1-21, December.
    6. Borba, Rafael Lucas & de Paula Ferreira, Iuri Emmanuel & Bertucci Ramos, Paulo Henrique, 2024. "Addressing discriminatory bias in artificial intelligence systems operated by companies: An analysis of end-user perspectives," Technovation, Elsevier, vol. 138(C).
    7. Samuel N. Kirshner, 2025. "Psychological Distance and Algorithm Aversion: Congruency and Advisor Confidence," Service Science, INFORMS, vol. 17(2-3), pages 74-91, June.
    8. Evangelos Katsamakas & Oleg V. Pavlov & Ryan Saklad, 2024. "Artificial intelligence and the transformation of higher education institutions," Papers 2402.08143, arXiv.org.
    9. Hongyu Chen & Jiachen Peng & Lufei Huang, 2025. "AIGC Technology in the Fintech Sector: An Analysis of Theme Evolution Based on the BERTopic Model," SAGE Open, , vol. 15(4), pages 21582440251, November.
    10. Woszczyna Karolina & Mania Karolina, 2023. "The European map of artificial intelligence development policies: a comparative analysis," International Journal of Contemporary Management, Sciendo, vol. 59(3), pages 78-87, September.
    11. Vincenzo Varriale & Antonello Cammarano & Francesca Michelino & Mauro Caputo, 2025. "Critical analysis of the impact of artificial intelligence integration with cutting-edge technologies for production systems," Journal of Intelligent Manufacturing, Springer, vol. 36(1), pages 61-93, January.
    12. Chen, Pengyu & Chu, Zhongzhu & Zhao, Miao, 2024. "The Road to corporate sustainability: The importance of artificial intelligence," Technology in Society, Elsevier, vol. 76(C).
    13. Yi Sun & Shihui Li & Lingling Yu, 2022. "The dark sides of AI personal assistant: effects of service failure on user continuance intention," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(1), pages 17-39, March.
    14. Jose Ramon Saura & Rita Bužinskienė, 2025. "Behavioral economics, artificial intelligence and entrepreneurship: an updated framework for management," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-33, December.
    15. Weidong Li & Yalin Qin & Changjie Chen & Meng Wang, 2025. "An investigation into personal data sensitivity in the Internet of Everything—insights from China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-14, December.
    16. Maslinawati Mohamad & Fatmawati Jusoh & Noor Faiza M. Ja'afar & Rabiatul Alawiyah Zainal Abidin, 2024. "From Threat to Shield: How Fintech Empowers Financial Institutions in Combating Fraud," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(14), pages 346-354, December.
    17. Byung-Jik Kim & Julak Lee, 2024. "The mental health implications of artificial intelligence adoption: the crucial role of self-efficacy," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    18. Leonardo Banh & Gero Strobel, 2023. "Generative artificial intelligence," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-17, December.
    19. Gang Kou & Yang Lu, 2025. "FinTech: a literature review of emerging financial technologies and applications," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-34, December.
    20. Yuexian Zhang & XueYing Wang & Xin Zhao, 2025. "Supervising or assisting? The influence of virtual anchor driven by AI–human collaboration on customer engagement in live streaming e-commerce," Electronic Commerce Research, Springer, vol. 25(4), pages 3047-3070, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:10:y:2026:i:3:p:2154-2164. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.