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AI-Driven Digital Transformation in MSMEs: Evaluating Technology Readiness and Digital Entrepreneurial Self efficacy

In: Proceedings of the 3rd International Conference on Artificial Intelligence in Economics, Finance and Management (ICAIEFM 2025)

Author

Listed:
  • P. S. Nisha

    (St. Joseph’s College Autonomous, Irinjalakuda, affiliated to University of Calicut, Part time Research Scholar
    Assistant Professor of Sree Krishna College)

  • G. S. Sandhya Nair

    (St. Joseph’s College Autonomous, Irinjalakuda, affiliated to University of Calicut, Research Supervisor
    Associate Professor of Sree Vivekananda College)

Abstract

This paper proposes to investigate how technology readiness and AI usage contribute to shaping digital entrepreneurial self-efficacy and driving digital transformation. It evaluates 2 constructs of technology readiness. The study is cross sectional nature and collected 100 responses from MSME entrepreneurs. Data were examined using descriptive statistics technique including mean standard deviation and Structural Equation Modelling The findings revealed that strong level of optimism and innovativeness are the sign of greater amount of technological readiness among MSME entrepreneurs. Moreover, MSME entrepreneurs’ high level of digital self-efficacy is the indicator of their confidence and their willingness to adopt digital technology tools such as IOT, AI, social medias etc. in their business. Finally, moderate to high level of Digital transformation exhibited that entrepreneurs are internally ready, but require external support in order to achieve full-fledged digital transformation among MSME entrepreneurs. The results highlight the significant role of AI usage, optimism, and innovativeness in enhancing digital entrepreneurial self-efficacy and facilitating digital transformation. The research emphasized the need of the collaborative efforts involving government, industry for providing targeted training, availing financial aid and develop infrastructure is crucial ensuring sustainable digital ecosystem.

Suggested Citation

  • P. S. Nisha & G. S. Sandhya Nair, 2025. "AI-Driven Digital Transformation in MSMEs: Evaluating Technology Readiness and Digital Entrepreneurial Self efficacy," Advances in Economics, Business and Management Research, in: Bejoy Joseph & Devi Sekhar R (ed.), Proceedings of the 3rd International Conference on Artificial Intelligence in Economics, Finance and Management (ICAIEFM 2025), pages 349-370, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-896-7_18
    DOI: 10.2991/978-94-6463-896-7_18
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