The Impact of Artificial Intelligence (AI) Adoption on Marketing Performance in Zimbabwean Retail Small to Medium Enterprises (SMEs)

Abstract

Artificial intelligence is reshaping the Global Business environment yet its impact within Zimbabwean Small to Medium Enterprises is not yet fully known. Zimbabwean SMEs contribute approximately USD 8.6 Billion to the country’s GDP and provide substantial employment constituting a critical component of the economy. According to the World Bank, Zimbabwean SMEs operate in a difficult environment that is marked by fierce competition in the market, restricted access to capital and operational inefficiencies and the integration of Artificial Intelligence in business operations presents an opportunity for Zimbabwean SMEs to overcome these challenges, improve performance, compete at a global level and ensure sustainable growth. This research investigated the impact of AI adoption on marketing performance among formally registered retail SMEs operating in Harare, Zimbabwe. The research employed a mixed-methods design approach combining qualitative and quantitative data from 38 SMEs operating in Harare. Quantitative survey data was collected via a questionnaire from 23 Artificial Intelligence adopters, and 15 Artificial Intelligence non-adopters and qualitative data was collected via in-depth interviews from 6 SMEs constituting an equal number of adopters and non-adopters. The study employed a combination of the Technology-Organization-Environment (TOE) framework and Technology Acceptance Model (TAM) and data was analysed using SPSS utilizing descriptive statistics, t-tests, correlation analysis, ANOVA and thematic analysis for qualitative data. The results revealed a high level of awareness of AI Technology at 92% among SMEs and an adoption rate of 61% exceeding expectations from a developing country. Both Artificial Intelligence adopters and non-adopters showed a strong perceived usefulness of the technology however the perceived ease of use was low among adopters revealing that there are challenges faced by users of the technology. External environmental factors such as unreliable internet, unstable power, lack of technology vendor support and inadequate information were identified as the major challenges to adoption. Followed by technological challenges such as the cost of the technology and lastly organisational challenges. The study also investigates how other factors such as business size and years in operation affect Artificial Intelligence adoption. The study concludes that Artificial Intelligence adoption results in significant improvement on marketing performance metrics with the t-tests revealing significant positive impacts. The study suggests practical implications and provides recommendations for SME owners, managers, government, policy makers and Artificial Intelligence developers and distributors. The study also contributes to the body of knowledge on technology adoption in developing countries as it focuses specifically on Artificial Intelligence Technology adoption in Zimbabwe and not the broader aspect of Digital Transformation in Zimbabwe.