Social Capital and Artificial Intelligence Readiness: The Mediating Role of Cyber Resilience and Value Construction of SMEs in Resource-Constrained Environments

Ode, Egena ORCID: https://orcid.org/0000-0002-2134-7404, Awolowo, Ifedapo Francis ORCID: https://orcid.org/0000-0003-0172-0846, Nana, Rabake ORCID: https://orcid.org/0000-0001-8582-5607 and Olawoyin, Femi Stephen ORCID: https://orcid.org/0000-0002-9759-4356 (2025) Social Capital and Artificial Intelligence Readiness: The Mediating Role of Cyber Resilience and Value Construction of SMEs in Resource-Constrained Environments. Information Systems Frontiers. ISSN 1387-3326

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Abstract

Drawing on social capital theory, this study explores the antecedents of AI readiness in Small and Medium-sized Enterprises (SMEs) operating in resource-constrained environments, emphasising capabilities that mitigate cyber risks, and foster value construction in SMEs. Specifically, the study examines how structural, cognitive, and relational social capital fosters cyber resilience and contributes to proactive value construction, enhancing SMEs’ AI readiness and enabling them to construct and sustain value while safeguarding against potential cyber threats. The study adopts a Covariance-based Structural Equation Modelling (CB-SEM) approach to analyse 589 valid responses. A multi-wave data strategy with an interval cross-lagged design was implemented to reduce the risk of common method bias. The findings reveal that structural and relational capital significantly drive AI readiness, while cognitive social capital enhances cyber resilience, which is pivotal in constructing and protecting organisational value. Moreover, cyber resilience mediates the relationship between cognitive social capital and AI readiness, and enabling value construction amid cyber-related disruptions. SMEs with robust social capital networks are better equipped to leverage AI technologies for innovation and growth, construct new value streams, and defend against cyber risks, securing value in dynamic digital environments. This study contributes to the growing discourse on cybersecurity and digital transformation by offering insights into how SMEs can bolster digital innovation and construct sustainable value in the face of mounting cyber risks.