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Enhancing the Competitiveness of AI Technology-Based Startups in the Digital Era

Author

Listed:
  • Byunguk Lee

    (Seoul Business School, aSSIST University, Seoul 03767, Republic of Korea)

  • Boyoung Kim

    (Seoul Business School, aSSIST University, Seoul 03767, Republic of Korea)

  • Ureta Vaquero Ivan

    (Department of Business Economics, Health and Social Care, The University of Applied Sciences and Arts of Southern Switzerland, 6928 Manno, Switzerland)

Abstract

Artificial Intelligence (AI) startups possess four key attributes; being small enterprises, adopting AI technology, undergoing digital transformation, and using big data systems to enhance their competitiveness. This study aims to identify the key influencing factors needed to enhance the competitiveness of AI technology-based startups and to suggest a decision-making model to improve the technology and business competitiveness of AI startups in the digital era. To achieve this, the hierarchy concept framework was built with four evaluation areas based on the mechanism-based view theory, and the 16 evaluation factors that can influence were identified through existing literature, combining factors related to the digital transformation, technological application, and business competitiveness of the startups. These factors were analyzed using the Analytic Hierarchy Process (AHP) by the survey, targeting experts in South Korea. The analysis results indicate that the subject area was the most crucial for the business competitiveness of AI startups. It was also revealed that the subject’s strategic mind is the most significant factor to AI startups’ success. In the case of two control groups, categorized as ‘AI experts’ and ‘startup experts’, AI experts chose the subject as the most important area, whereas startup experts selected the environment, and significant differences were observed in all other factors. The results of this study will provide implications for strengthening the business competitiveness of AI startups and factors important for the growth of AI startups in this era.

Suggested Citation

  • Byunguk Lee & Boyoung Kim & Ureta Vaquero Ivan, 2023. "Enhancing the Competitiveness of AI Technology-Based Startups in the Digital Era," Administrative Sciences, MDPI, vol. 14(1), pages 1-15, December.
    • Handle: RePEc:gam:jadmsc:v:14:y:2023:i:1:p:6-:d:1304989
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    References listed on IDEAS

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    1. J. Sevilla-Bernardo & Teresa C. Herrador-Alcaide & Blanca Sanchez-Robles, 2024. "Successful entrepreneurship, higher education and society: from business practice to academia," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-20, December.
    2. Nam, Jinyoung & Jung, Yoonhyuk & Kim, Junghwan, 2024. "Understandings of the AI business ecosystem in South Korea: AI startups’ perspective," Telecommunications Policy, Elsevier, vol. 48(6).

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