Drivers of generative artificial intelligence to fostering exploitative and exploratory innovation: A TOE framework

Abstract

This research work aims to investigate the antecedents of generative artificial intelligence (GEN-AI) adoption, and exploratory and exploitative innovation. A conceptual model based on the technology-organization-environment (TOE) framework is proposed and tested empirically using online survey-based data collected from 260 managers and administrative employees located in the Jordanian retailing industry. To achieve the objectives of this work a covariance-based- structural equation modelling (CB-SEM) was employed. The results indicate that relative advantage, top management support, organizational readiness, and customer pressures positively influence GEN-AI adoption. The empirical results demonstrated that the influence of compatibility and competitive pressures on GEN-AI adoption are insignificant. It was found that complexity negatively influence of GEN-AI adoption, also the findings confirm the positive impact of GEN-AI on both exploratory and exploitative innovation. The findings of the existing research would be valuable for GEN-AI technology providers, managers and top management in the retail firms sector in terms of building effective procedures to promote the successful adoption of GEN-AI technologies and innovation.