How to survive in the age of artificial intelligence? Exploring the intelligent transformations of SMEs in central China

Abstract

PurposeThe purpose of the research is to explore how small and medium enterprises (SMEs) in central China achieve intelligent transformation through the use of artificial intelligence (AI). Because of unequal resource allocation, constraints on the intelligent transformation of SMEs in central China are different from those in economically and technologically well-developed coastal provinces. Hence, the authors focus on SMEs in central China to identify drivers of and barriers to intelligent transformation.Design/methodology/approachThe interview data were collected from 66 SMEs across 20 industries in central China. To verify the validity of the data collection method, the authors used two methods to control for retrospective bias: multi-level informants and enterprises' AI project application materials (Wei and Clegg, 2020). The final data were validated without conflicts. Next, the authors cautiously followed a two-step approach recommended by Venkatesh et al. (2010) and used NVivo 11.0 to analyze the collected text data.FindingsSMEs in central China are enthusiastic about intelligent transformation while facing both internal and external pressures. SMEs need to pay attention to both internal (enterprise development needs, implementation cost, human resources and top management involvement) and external factors (external market pressure, convenience of AI technology and policy support) and their different impacts on intelligent transformation. However, constrained by limited resources, SMEs in central China have been forced to take a step-by-step intelligent transformation strategy based on their actual needs with the technological flexibility method in the short term.Originality/valueConsidering the large number of SMEs and their importance in promoting China's economic development and job creation (SME Bureau of MIIT, 2020), more research on SMEs with limited resources is needed. In the study, the authors confirmed that enterprises should handle “social responsibility” carefully because over-emphasizing it will hinder intelligent transformation. However, firms should pay attention to the role of executives in promoting intelligent transformation and make full use of policy support to access more resources.

Factors Influencing 4.0 Technology Adoption in Manufacturing SMEs in an Emerging Country

“…Regarding Proposition 2.3 and the benefits that SMEs can perceive while they are implementing these new technologies, Wang et al (2021) argue that despite the difficulties and costs, SMEs have the enthusiasm to see the benefits and positive impacts of digital transformation with 4.0 technologies, the most important of which are flexibility and cost reduction. In addition, this research validates the proposition because benefits are one the existing categories presented, and the flexibility and cost decrease during the process are included in it.…”

“…They proposed the application of road mapping technologies, enhancing collaboration, standardization with partners and the improvement of big data platforms as possible solutions. In China, Wang et al (2021) argue that, despite the difficulties and costs, SMEs have the enthusiasm to see the benefits and positive impacts of digital transformation with 4.0 technologies. The most important are flexibility and cost reduction, the latter being a relevant variable that is also found in Malaysia and Nigeria (Gbadebo et al, 2019).…”

Untitled

“…Garbellano and Da Veiga (2019) highlight the significance of involving workers, including blue-collar workers, in digital transformation project kick-off meetings to address concerns, costs, and risks. Wang et al (2022) propose integrating the adoption of 4IR technologies, such as AI, into the key performance areas of workers to encourage active involvement and adoption. However, the literature indicates that a lack of vision, support, and direction from leadership adversely affects 4IR technology adoption.…”

The Application of Industrial Robot and the High-Quality Development of Manufacturing Industry: From a Sustainability Perspective

“…Moreover, AI technology accelerates the speed of information transfer between manufacturing sectors and extends the layout of industrial chain division of labor [57]. Third, AI technology can enhance the core competitiveness of manufacturing enterprises [57,58]. Enterprises can use AI technology to improve the added value of their products.…”