DANCING WITH AI: TOWARD A FRAMEWORK FOR UNDERSTANDING HOW EMERGING MARKET ENTREPRENEURS INTEGRATE GENERATIVE ARTIFICIAL INTELLIGENCE WITH EFFECTUAL DECISION-MAKING
Abstract
Drawing on effectuation theory, this study examines how resource-constrained entrepreneurs in emerging markets reconcile the analytical capabilities of Generative Artificial Intelligence (GenAI) with relationship-based effectual decision-making under high uncertainty. It aims to resolve the tension between algorithmic efficiency and human-centric logic in non-Western contexts. Adopting an abductive multiple case study design, we conducted in-depth semi-structured interviews with twelve Moroccan entrepreneurs (N=12) engaged in international expansion across three distinct sectors: agri-business, traditional crafts, and sports technology. Data analysis followed a hierarchical coding process to identify cross-case patterns of integration and resistance. Findings reveal a Decision-Type Integration Hierarchy (DTIH) where entrepreneurs delegate analytical tasks to AI to operationalize affordable loss while strictly retaining human control over trust-intensive decisions. We document Crisis Reversion (CR), a novel phenomenon where entrepreneurs abandon algorithmic tools during supply chain shocks, reverting to human effectual networks. Furthermore, cultural authenticity acts as a strict boundary condition limiting AI adoption in high-touch sectors. This research extends effectuation theory by demonstrating how GenAI functions as a mechanism for Cognitive Expansion rather than substitution. It contributes a preliminary framework for AI-Enabled Effectuation challenging linear adoption models by highlighting the temporal fragility of AI reliance during crises.
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Generative Artificial IntelligenceEffectuation TheoryEmerging MarketsCrisis ReversionCognitive ExpansionSME Internationalization
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