AI-Driven Decision-Making as a Pathway to Entrepreneurial Success: The Mediating role of Entrepreneurial Resilience

Abstract

Artificial intelligence is increasingly transforming entrepreneurial decision making, yet limited research explains how AI-driven decision making lead toward entrepreneurial success, particularly in SMEs in emerging economies. This study addresses this gap by examining the effect of AI-driven decision making on entrepreneurial success and investigating the mediating role of entrepreneurial resilience among SMEs in Pakistan. Keeping in view the Resource based view an Dynamic capabilities theory, the study conceptualizes entrepreneurial resilience as a critical capability through which AI-generated intelligence can be converted into entrepreneurial outcomes. A quantitative, cross sectional research design was employed, and data were collected from 354 owners/managers of SMEs, using structured questionnaire and purposive sampling. Data was analyzed using Hayes’ Process Macro Model 4. The findings demonstrate that AI-driven decision making has a significant positive effect on entrepreneurial success and entrepreneurial resilience (H1, H2). Entrepreneurial resilience also showed significant positive effect on entrepreneurial success (H3). Importantly, the indirect effect of AI-driven decision making on entrepreneurial success through entrepreneurial resilience was positive and significant, whereas the direct effect became statistically insignificant (H4). These findings indicate that entrepreneurial resilience represents a key mechanism through which AI-driven decision making contributes to entrepreneurial success. The study extends AI-enabled entrepreneurship research by integrating  technological and entrepreneurial capabilities and provides evidence from an emerging economic context. The findings  suggests that SMEs should complement investments in AI-driven decision making with initiatives that  strengthen entrepreneurial resilience , adaptability and capacity to respond effectively to uncertainty.  

Keywords: AI-Driven Decision making, Entrepreneurial Resilience, Entrepreneurial Success.