The Influence of Artificial Intelligence Utilization, Innovation Capability, and Marketing Capability on the Performance of Small and Medium-Sized Enterprises in Upper Northern Thailand

Abstract

This study examined the influence of artificial intelligence (AI) utilization, innovation capability, and marketing capability on the performance of small and medium-sized enterprises (SMEs) in Upper Northern Thailand. Grounded in the resource-based view and dynamic capability theory, the study employed a quantitative, cross-sectional research design. Data were collected through structured questionnaires from 400 SME owners, entrepreneurs, and executives across eight provinces in Upper Northern Thailand. The data were analyzed using descriptive statistics, Pearson correlation analysis, path analysis, and bootstrap analysis to assess direct and indirect effects. The results revealed that AI utilization had significant positive effects on innovation capability (β = .681), marketing capability (β = .327), and firm performance (β = .214). Innovation capability positively influenced marketing capability (β = .535) and firm performance (β = .281), while marketing capability positively influenced firm performance (β = .463). Furthermore, AI utilization exerted a significant indirect effect on firm performance through innovation and marketing capabilities. The findings demonstrate that the organizational value of AI extends beyond its direct impact on performance and is substantially realized through complementary organizational capabilities. The study highlights the importance of integrating AI utilization with innovation and marketing capability development to enhance SME performance and provides practical implications for SME managers and policymakers seeking to strengthen competitiveness in an increasingly digital business environment.