IDEAS home Printed from https://ideas.repec.org/a/aou/nszioz/y2022i1p63-76.html
   My bibliography  Save this article

What managers of SMEs in the CEE region should know about challenges of artificial intelligence’s adoption? – an introductive discussion

Author

Listed:
  • Cristian-Mihai Vidu
  • Florina Pinzaru
  • Andreea Mitan

Abstract

The next step of the digital transformation is to adopt artificial intelligence (AI), even if the technology itself is still evolving. Nevertheless, discussions on AI pros and cons are vivid: managers are in the frontline of the decision-making on the best ways for such transitions. If corporations are already familiar with AI, at least partially for some processes, small and medium enterprises (SMEs) face a double pressure: their inequal degree of digital maturity, as well as the everyday constraints on how to increase competitiveness. CEE SMEs, in particular, find themselves in a complex framework, and the adoption of AI, even if challenging, could be one of the solutions to advance in terms of efficiency. Nevertheless, risks in such an approach must be carefully considered. Based on a semi-structured literature review, this opinion paper discusses the main risks that managers of SMEs in the CEE region should understand regarding AI and the consequent challenges of adopting it in business. Final considerations and future research discussions conclude the paper.

Suggested Citation

  • Cristian-Mihai Vidu & Florina Pinzaru & Andreea Mitan, 2022. "What managers of SMEs in the CEE region should know about challenges of artificial intelligence’s adoption? – an introductive discussion," Nowoczesne Systemy Zarządzania. Modern Management Systems, Military University of Technology, Faculty of Security, Logistics and Management, Institute of Organization and Management, issue 1, pages 63-76.
  • Handle: RePEc:aou:nszioz:y:2022:i:1:p:63-76
    as

    Download full text from publisher

    File URL: https://nsz.wat.edu.pl/pdf-147989-75990
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yang Lu, 2019. "Artificial intelligence: a survey on evolution, models, applications and future trends," Journal of Management Analytics, Taylor & Francis Journals, vol. 6(1), pages 1-29, January.
    2. Ipsmiller, Edith & Dikova, Desislava, 2021. "Internationalization from Central and Eastern Europe: A systematic literature review," Journal of International Management, Elsevier, vol. 27(4).
    3. Jarrahi, Mohammad Hossein, 2018. "Artificial intelligence and the future of work: Human-AI symbiosis in organizational decision making," Business Horizons, Elsevier, vol. 61(4), pages 577-586.
    4. Loureiro, Sandra Maria Correia & Guerreiro, João & Tussyadiah, Iis, 2021. "Artificial intelligence in business: State of the art and future research agenda," Journal of Business Research, Elsevier, vol. 129(C), pages 911-926.
    5. Canhoto, Ana Isabel & Clear, Fintan, 2020. "Artificial intelligence and machine learning as business tools: A framework for diagnosing value destruction potential," Business Horizons, Elsevier, vol. 63(2), pages 183-193.
    6. Dawid, Herbert & Muehlheusser, Gerd, 2022. "Smart products: Liability, investments in product safety, and the timing of market introduction," Journal of Economic Dynamics and Control, Elsevier, vol. 134(C).
    7. Fotis Kitsios & Maria Kamariotou, 2021. "Artificial Intelligence and Business Strategy towards Digital Transformation: A Research Agenda," Sustainability, MDPI, vol. 13(4), pages 1-14, February.
    8. János Kornai, 2008. "The Great Transformation of Central Eastern Europe: Success and Disappointment," International Economic Association Series, in: János Kornai & László Mátyás & Gérard Roland (ed.), Institutional Change and Economic Behaviour, chapter 1, pages 1-37, Palgrave Macmillan.
    9. Elena-Mădălina Vătămănescu & Elena-Alexandra Gorgos & Alexandru Mihai Ghigiu & Monica Pătruț, 2019. "Bridging Intellectual Capital and SMEs Internationalization through the Lens of Sustainable Competitive Advantage: A Systematic Literature Review," Sustainability, MDPI, vol. 11(9), pages 1-22, April.
    10. Frey, Carl Benedikt & Osborne, Michael A., 2017. "The future of employment: How susceptible are jobs to computerisation?," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 254-280.
    11. Klaus E Meyer & Mike W Peng, 2016. "Theoretical foundations of emerging economy business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(1), pages 3-22, January.
    12. Ramona Rupeika-Apoga & Larisa Bule & Kristine Petrovska, 2022. "Digital Transformation of Small and Medium Enterprises: Aspects of Public Support," JRFM, MDPI, vol. 15(2), pages 1-21, January.
    13. Königstorfer, Florian & Thalmann, Stefan, 2020. "Applications of Artificial Intelligence in commercial banks – A research agenda for behavioral finance," Journal of Behavioral and Experimental Finance, Elsevier, vol. 27(C).
    14. Klaus E Meyer & Mike W Peng, 2005. "Probing theoretically into Central and Eastern Europe: transactions, resources, and institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(6), pages 600-621, November.
    15. Daniela Livia Trașcă & George Marian Ștefan & Daniela Nicoleta Sahlian & Răzvan Hoinaru & George-Laurențiu Șerban-Oprescu, 2019. "Digitalization and Business Activity. The Struggle to Catch Up in CEE Countries," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elena-Mădălina Vătămănescu & Andreea Mitan & Paul Claudiu Cotîrleț & Andreia Gabriela Andrei, 2022. "Exploring the Mediating Role of Knowledge Sharing between Informal Business Networks and Organizational Performance: An Insight into SMEs Internationalization in CEE," Sustainability, MDPI, vol. 14(7), pages 1-15, March.
    2. Koveshnikov, Alexei & Dabija, Dan-Cristian & Inkpen, Andrew & Vătămănescu, Elena-Mădălina, 2022. "Not running out of steam after 30 years: The enduring relevance of Central and Eastern Europe for international management scholarship," Journal of International Management, Elsevier, vol. 28(3).
    3. Makarius, Erin E. & Mukherjee, Debmalya & Fox, Joseph D. & Fox, Alexa K., 2020. "Rising with the machines: A sociotechnical framework for bringing artificial intelligence into the organization," Journal of Business Research, Elsevier, vol. 120(C), pages 262-273.
    4. Ipsmiller, Edith & Dikova, Desislava, 2021. "Internationalization from Central and Eastern Europe: A systematic literature review," Journal of International Management, Elsevier, vol. 27(4).
    5. Chotia, Varun & Cheng, Yue & Agarwal, Reeti & Vishnoi, Sushant Kumar, 2024. "AI-enabled Green Business Strategy: Path to carbon neutrality via environmental performance and green process innovation," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    6. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    7. Paschen, Jeannette & Wilson, Matthew & Ferreira, João J., 2020. "Collaborative intelligence: How human and artificial intelligence create value along the B2B sales funnel," Business Horizons, Elsevier, vol. 63(3), pages 403-414.
    8. Hasan Boztoprak & Mehmet Eryilmaz, 2021. "The strategy tripod perspective in explaining firms’ export performance," Upravlenets, Ural State University of Economics, vol. 12(5), pages 50-69, November.
    9. Berk Kaan Kuguoglu & Haiko van der Voort & Marijn Janssen, 2021. "The Giant Leap for Smart Cities: Scaling Up Smart City Artificial Intelligence of Things (AIoT) Initiatives," Sustainability, MDPI, vol. 13(21), pages 1-16, November.
    10. Brouthers, Lance & Văduva, Sebastian & Tiron-Tudor, Adriana & Burtic, Daniel, 2023. "The Transformation of the Romanian Economy Through Privatization and Internationalization," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 28(2), pages 265-292.
    11. Na Yang & Jue Wang & Xiaming Liu & Lingyun Huang, 2022. "Home-country institutions and corporate social responsibility of emerging economy multinational enterprises: The belt and road initiative as an example," Asia Pacific Journal of Management, Springer, vol. 39(3), pages 927-965, September.
    12. Mendi, Pedro & Mudida, Robert, 2018. "The effect on innovation of beginning informal: Empirical evidence from Kenya," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 326-335.
    13. Ayat Sami ODEIBAT, 2021. "The Effect Of Technology Evolution On The Future Of Jobs," Network Intelligence Studies, Romanian Foundation for Business Intelligence, Editorial Department, issue 17, pages 57-67, June.
    14. Liu, Xiaming & Yang, Na & Li, Linjie & Liu, Yuanyuan, 2021. "Co-evolution of emerging economy MNEs and institutions: A literature review," International Business Review, Elsevier, vol. 30(4).
    15. Victoria Golikova & Boris Kuznetsov, 2017. "Suboptimal Size: Factors Preventing the Growth of Russian Small and Medium-Sized Enterprises," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(3), pages 83-93.
    16. Yang, Chih-Hai, 2022. "How Artificial Intelligence Technology Affects Productivity and Employment: Firm-level Evidence from Taiwan," Research Policy, Elsevier, vol. 51(6).
    17. Chowdhury, Soumyadeb & Budhwar, Pawan & Dey, Prasanta Kumar & Joel-Edgar, Sian & Abadie, Amelie, 2022. "AI-employee collaboration and business performance: Integrating knowledge-based view, socio-technical systems and organisational socialisation framework," Journal of Business Research, Elsevier, vol. 144(C), pages 31-49.
    18. Holmström, Jonny, 2022. "From AI to digital transformation: The AI readiness framework," Business Horizons, Elsevier, vol. 65(3), pages 329-339.
    19. Barnard, Helena & Mamabolo, Anastacia, 2022. "On religion as an institution in international business: Executives’ lived experience in four African countries," Journal of World Business, Elsevier, vol. 57(1).
    20. Makowski, Piotr Tomasz & Kajikawa, Yuya, 2021. "Automation-driven innovation management? Toward Innovation-Automation-Strategy cycle," Technological Forecasting and Social Change, Elsevier, vol. 168(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aou:nszioz:y:2022:i:1:p:63-76. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michał Jurek (email available below). General contact details of provider: http://nsz.wat.edu.pl/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.