AI for the underdogs: Navigating risk and growth in high-tech micro-firms through generative artificial intelligence

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Shahzad, Faisal, Hoque, Mohammad Tayeenul, Khan, Iqra Sadaf and Arslan, Ahmad (2026) AI for the underdogs: Navigating risk and growth in high-tech micro-firms through generative artificial intelligence. Journal of Strategy & Innovation, 37 (1). ISSN 3050-7901 (In Press)

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Abstract

Generative Artificial Intelligence (Gen-AI) has gained significant traction in larger firms, yet its adoption among micro-firms remains underexplored particularly in contexts marked by resource scarcity and heightened operational risk. This study addresses this gap by investigating how hightech micro-firms adopt Gen-AI for risk management and growth. Drawing on semi-structured interviews with decision-makers from eight Finnish micro-firms, the research applies the Technology-Organization-Environment (TOE) framework to identify critical enablers and barriers. The findings highlight five key dimensions influencing adoption: technological readiness, leadership engagement, regulatory compliance, data-driven decision-making, and competitive pressures. While Gen-AI fosters operational resilience and strategic agility, its impact is constrained by limited data quality and high implementation costs. By offering a holistic and theoretically grounded perspective, this study advances understanding of Gen-AI adoption in microfirms and contributes to literature on digital transformation under resource constraints. The insights also inform policymakers and practitioners aiming to enhance AI accessibility and governance for micro-enterprises.

Item Type: Article
Additional Information: Data availability: The data that has been used is confidential.
Uncontrolled Keywords: artificial intelligence,generative ai,high-tech micro-firms,risk management,technology adoption,information systems and management,management of technology and innovation,marketing,computer science applications,strategy and management ,/dk/atira/pure/subjectarea/asjc/1800/1802
Faculty \ School: Faculty of Social Sciences > Norwich Business School
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Depositing User: LivePure Connector
Date Deposited: 10 Feb 2026 12:37
Last Modified: 16 Feb 2026 14:31
URI: https://ueaeprints.uea.ac.uk/id/eprint/101892
DOI: 10.1016/j.jsinno.2026.200566

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