The Assessment of Artificial Intelligence for Business Performance in Bangladesh

Abstract

In Bangladesh, improving small and medium enterprise (SME) performance is still an uphill task. The study aims to explore the effects of AI on the performance of small and medium business organizations. With advanced statistical analysis, the study highlighted the significant effects of artificial intelligence on the performance of small and medium enterprises by accepting all the proposed hypotheses. Additionally, effective business management (EBM) showed the role of a partial mediator, since artificial intelligence directly and indirectly held an association with small and medium enterprise performance. Moreover, the authenticity of the study was supported by confirmatory factor analysis (CFA) and structural equation model (SEM) which were represented based on model fit exponents, composite reliability, convergent validity, and discriminant validity. The study ended by providing theoretical and managerial implications that will assist business owners, managers, stakeholders, and policymakers in improving their business performance.