The nexus of artificial intelligence, frugal innovation and business model innovation to nurture internationalization: A survey of SME's readiness

This study uses transaction cost economics theory to explain the interplay of artificial intelligence readiness, frugal innovation, and business model innovation to achieve SMEs’ internationalization objectives. A survey is conducted among SMEs using cluster sampling to determine their readiness for artificial intelligence adoption. The results are analyzed using Smart PLS 4.1 software. The study explored the mediating role of business model innovation and artificial intelligence’s moderating role in promoting business model innovation and SMEs’ internationalization, respectively. Finally, the authors performed a necessary conditions analysis to identify the necessary conditions for SME internationalisation. The study has contextual implications for stakeholders and policymakers of an oil-rich nation.