Examining the AI-related factors influencing innovative business development in South Africa

Abstract

This study examines the critical role of artificial intelligence (AI)-related factors in driving innovative business development in South Africa, a developing economy that faces unique challenges. Using the Technology-Organization-Environment (TOE) framework, this study explores how AI skills, technical infrastructure, and competitive pressures influence organizational innovation. A quantitative research design was employed to collect data through cross-sectional online surveys targeting professionals involved in AI strategies and integration. The findings reveal that while technical infrastructure significantly impacts innovation, a critical skills gap and intense competitive pressure hinder effective AI adoption. This study highlights the urgent need for investments in digital infrastructure, workforce upskilling, and targeted policy interventions to address these barriers. By addressing these factors, South African businesses can leverage AI for sustainable growth and enhance their competitiveness in the global market. This study contributes to the growing body of knowledge on AI adoption in resource-constrained settings and offers actionable insights for policymakers and industry leaders.