Marketing Magic or Just Hype? The AI Factor in Indonesia’s MSME Growth

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Quantitative analysis reveals that AI significantly enhances competitiveness in MSMEs, indicating innovative strategies are effective.

AI adoption significantly impacts innovation and competitiveness in MSMEs, with innovation acting as a partial mediator.
A quantitative analysis using PLS-SEM on data from 160 MSMEs shows strong reliability and validity.
The study incorporates the Technology Acceptance Model, Diffusion of Innovations, and Resource-Based View frameworks.
Findings suggest that focusing on AI-driven innovation can enhance the digital transformation of the MSME sector.

Putra et al. (2025) studied this question.

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