Empowering SME Potential : How AI Information Quality Fuels Market Orientation Success in the Digital Age

Ha, Shiaw-Tong and Lo, May Chiun and Abang Azlan, Mohamad (2025) Empowering SME Potential : How AI Information Quality Fuels Market Orientation Success in the Digital Age. Journal of the Knowledge Economy. pp. 1-21. ISSN 1868-7865

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Abstract

Small and medium enterprises (SMEs) face increasing pressure to leverage data for agile decision-making in today’s competitive landscape. Existing market orientation frameworks, while valuable, often fail to capture the dynamic and rapidly changing market conditions that artifcial intelligence (AI)-powered real-time insights can provide, creating a critical gap in understanding how SMEs can efectively integrate AI to enhance MO and drive performance. This study addresses this gap by exploring the moderating role of AI information quality on the relationship between MO and SME performance among 130 Malaysian SMEs actively using AI. Specifcally, we examine how the accuracy and currency of AI-driven data infuence the impact of customer orientation, competitor orientation, and inter-functional coordination on SME performance. Our fndings reveal that high-quality AI information signifcantly amplifes the positive efects of both customer and competitor orientation on SME performance. This suggests that AI, combined with high-quality data, empowers SMEs with enhanced customer insights and competitive intelligence, leading to improved strategic adaptation and performance outcomes. These fndings ofer valuable implications for SMEs globally, suggesting that investments in high-quality AI-driven data and its integration with MO strategies can lead to signifcant performance gains across diverse markets. Furthermore, these fndings inform policymakers on strategies to support SME growth in the digital economy by promoting AI adoption and data literacy initiatives.

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