IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v10y2022i6p129-d829931.html
   My bibliography  Save this article

The Critical Factors Impacting Artificial Intelligence Applications Adoption in Vietnam: A Structural Equation Modeling Analysis

Author

Listed:
  • Nguyen Van Phuoc

    (Faculty of Business Administration, Posts and Telecommunications Institute of Technology, Ha Dong, Hanoi 12100, Vietnam)

Abstract

The concept of artificial intelligence (AI) is the transformation of inanimate objects into intelligent beings that can reason similarly to humans. Computer systems are capable of imitating a number of human intelligence functions, such as learning, reasoning, problem solving, speech recognition, and planning. In this regard, artificial intelligence applications have been developed to assist corporations and entrepreneurs in making business decisions. Hence, the aim of the study is to investigate the adoption of AI applications at the Vietnamese organizational level. Using the core structures of the technology–organization–environment (TOE), the theoretical model was constructed based on how technical and environmental elements influence companies’ technological innovation adoption decisions. Ten critical factors related to AI adoption are identified. To test the model, data were obtained from 193 senior managers who are directly in charge of information systems in both private and public companies in Vietnam. Subsequently, the Structural Equation Modeling (SEM) approach was used to analyze the data. The findings indicate that technical compatibility, relative advantage, technical complexity, technical capability, managerial capability, organizational readiness, government involvement, market uncertainty, and vendor partnership are significantly related to AI application adoption. Interestingly, the study results indicated that the relationship between organization size and AI adoption was not statistically significant. Therefore, the suggested adoption of the AI application could contribute to the existing research on the adoption of AI through the TOE. Finally, the significant government law implications and future research directions are further addressed.

Suggested Citation

  • Nguyen Van Phuoc, 2022. "The Critical Factors Impacting Artificial Intelligence Applications Adoption in Vietnam: A Structural Equation Modeling Analysis," Economies, MDPI, vol. 10(6), pages 1-16, June.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:6:p:129-:d:829931
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/10/6/129/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/10/6/129/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hal Varian, 2018. "Artificial Intelligence, Economics, and Industrial Organization," NBER Chapters, in: The Economics of Artificial Intelligence: An Agenda, pages 399-419, National Bureau of Economic Research, Inc.
    2. Paul Attewell, 1992. "Technology Diffusion and Organizational Learning: The Case of Business Computing," Organization Science, INFORMS, vol. 3(1), pages 1-19, February.
    3. Viswanath Venkatesh & Hillol Bala & V. Sambamurthy, 2016. "Implementation of an Information and Communication Technology in a Developing Country: A Multimethod Longitudinal Study in a Bank in India," Information Systems Research, INFORMS, vol. 27(3), pages 558-579, September.
    4. Ajay Agrawal & Joshua Gans & Avi Goldfarb, 2019. "Economic Policy for Artificial Intelligence," Innovation Policy and the Economy, University of Chicago Press, vol. 19(1), pages 139-159.
    5. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shaofeng Wang & Mengjia Gao & Hao Zhang, 2024. "Strengthening SMEs competitiveness and performance via industrial internet: Technological, organizational, and environmental pathways," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.

    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. Ajay Agrawal & Joshua Gans & Avi Goldfarb, 2019. "Economic Policy for Artificial Intelligence," Innovation Policy and the Economy, University of Chicago Press, vol. 19(1), pages 139-159.
    2. Yingying Lu & Yixiao Zhou, 2021. "A review on the economics of artificial intelligence," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1045-1072, September.
    3. Peng, Zeyu & Sun, Yongqiang & Guo, Xitong, 2018. "Antecedents of employees’ extended use of enterprise systems: An integrative view of person, environment, and technology," International Journal of Information Management, Elsevier, vol. 39(C), pages 104-120.
    4. Azmi, Anna & Sapiei, Noor Sharoja & Mustapha, Mohd Zulkhairi & Abdullah, Mazni, 2016. "SMEs' tax compliance costs and IT adoption: the case of a value-added tax," International Journal of Accounting Information Systems, Elsevier, vol. 23(C), pages 1-13.
    5. Fındık, Derya & Tansel, Aysit, 2013. "Resources on the stage: a firm level analysis of the ict adoption in Turkey," MPRA Paper 65956, University Library of Munich, Germany, revised 05 Aug 2014.
    6. Liu, Qian & Shao, Zhen & Fan, Weiguo, 2018. "The impact of users’ sense of belonging on social media habit formation: Empirical evidence from social networking and microblogging websites in China," International Journal of Information Management, Elsevier, vol. 43(C), pages 209-223.
    7. Christian Rammer & Gastón P Fernández & Dirk Czarnitzki, 2021. "Artificial Intelligence and Industrial Innovation: Evidence from Firm-Level Data," Working Papers of Department of Economics, Leuven 674605, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    8. Hazem Ali & Ting Chen & Yunhong Hao, 2021. "Sustainable Manufacturing Practices, Competitive Capabilities, and Sustainable Performance: Moderating Role of Environmental Regulations," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    9. Hao-Fan Chumg & Thi-Tinh Hoang & Si-Yu Zhou, 2025. "Factors Affecting Shopping Intentions on Social Commerce Websites in Vietnam," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 15(1), pages 1-9.
    10. Claudio Vitari & Elisabetta Raguseo, 2016. "Big data value and financial performance: an empirical investigation [Digital data, dynamic capability and financial performance: an empirical investigation in the era of Big Data]," Post-Print halshs-01923271, HAL.
    11. Ashwin W. Joshi, 2017. "OEM implementation of supplier-developed component innovations: the role of supplier actions," Journal of the Academy of Marketing Science, Springer, vol. 45(4), pages 548-568, July.
    12. Mario Silic & Andrea Back, 2016. "The Influence of Risk Factors in Decision-Making Process for Open Source Software Adoption," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 151-185, January.
    13. Gupta, Prashant & Seetharaman, A. & Raj, John Rudolph, 2013. "The usage and adoption of cloud computing by small and medium businesses," International Journal of Information Management, Elsevier, vol. 33(5), pages 861-874.
    14. Czarnitzki, Dirk & Fernández, Gastón P. & Rammer, Christian, 2023. "Artificial intelligence and firm-level productivity," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 188-205.
    15. Asif Khan & Chih-Cheng Chen & Kwanrat Suanpong & Athapol Ruangkanjanases & Santhaya Kittikowit & Shih-Chih Chen, 2021. "The Impact of CSR on Sustainable Innovation Ambidexterity: The Mediating Role of Sustainable Supply Chain Management and Second-Order Social Capital," Sustainability, MDPI, vol. 13(21), pages 1-25, November.
    16. Teller, Christoph & Kotzab, Herbert & Grant, David B., 2012. "The relevance of shopper logistics for consumers of store-based retail formats," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 59-66.
    17. Mehwish Iftikhar & Muhammad Imran Qureshi & Shazia Qayyum & Iram Fatima & Sriyanto Sriyanto & Yasinta Indrianti & Aqeel Khan & Leo-Paul Dana, 2021. "Impact of Multifaceted Workplace Bullying on the Relationships between Technology Usage, Organisational Climate and Employee Physical and Emotional Health," IJERPH, MDPI, vol. 18(6), pages 1-19, March.
    18. Gediminas Adomavicius & Jesse Bockstedt & Alok Gupta, 2012. "Modeling Supply-Side Dynamics of IT Components, Products, and Infrastructure: An Empirical Analysis Using Vector Autoregression," Information Systems Research, INFORMS, vol. 23(2), pages 397-417, June.
    19. Haijun Bao & Xiaoting Zhu & Yingying Cen & Yi Peng & Jibin Xue, 2018. "Effects of Social Network on Human Capital of Land-Lost Farmers: A Study in Zhejiang Province," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(1), pages 167-187, May.
    20. Bulent Akkaya & Anna Bagieńska, 2022. "The Role of Agile Women Leadership in Achieving Team Effectiveness through Interpersonal Trust for Business Agility," Sustainability, MDPI, vol. 14(7), pages 1-16, March.

    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:gam:jecomi:v:10:y:2022:i:6:p:129-:d:829931. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.