Unraveling AI Adoption: The Impact of Strategic Networking and Diverse Skill Sets on Digital Entrepreneurship in Pakistan

Abstract

This research paper examines the influence of social and human capital on the intentions of entrepreneurs to adopt Artificial Intelligence (AI) in the backdrop of Pakistan’s emerging economy, developing economies, with focus on digital entrepreneurs in Pakistan. A quantitative study was conducted using data collected from 326 Pakistani entrepreneurs across various industries in Pakistan. IBM SPSS v25 was employed to conduct regression analysis to test the proposed relationships. The findings concluded that skill variety has the strongest impact on the Pakistani entrepreneurs’ AI adoption intention. Moreover, Strategic networking, conceptualized as Criteria Related to AI Capabilities and Resources (CACR) and Competitive (AI-Centric) Knowledge (CAIK), plays significant role in strengthening their adoption intention, offering valuable insights into deliberately formed partnerships and quality of acquired knowledge. Control variables were employed, providing more detailed view and explaining the heterogeneous adoption tendencies. By incorporating the social and human capital into the conversation, the paper advances the academic understanding of both strategic networking and AI adoption intention, two underexplored research domains. Moreover, the dimensional study of strategic networking, focusing on the AI-based knowledge exchange, from relational and methodological perspectives, contributes a unique perspective to the digital entrepreneurship research domain. This research paper proposes theoretical and practical actions for the researchers and policymakers in terms of focused training, mentorship, and enhanced institutional support, to promote AI adoption in a resource-starved entrepreneurial ecosystem of Pakistan.