Turning Artificial Intelligence Readiness into Innovation in Greek Small and Medium-Sized Enterprises

Abstract

Artificial intelligence (AI) is increasingly accessible to small and medium-sized enterprises (SMEs), yet prior research explains less clearly how readiness is converted into innovation performance after firms move beyond initial tool adoption. This study examines Greek SMEs and tests whether AI readiness influences innovation performance through AI assimilation and organizational learning capability. Using an exploratory sequential mixed-methods design, the study combines 14 semi-structured interviews with survey evidence from 420 valid responses. Partial least squares structural equation modeling is estimated on 257 AI-exposed firms. The findings show that readiness positively affects assimilation, assimilation strengthens organizational learning capability and innovation performance, and the serial mediation pathway is supported. The main contribution is to show that AI readiness creates innovation value when it becomes embedded in organizational routines and converted into learning capability, rather than when firms merely gain access to AI tools.