Aligning Socio-Technical Systems: Rethinking AI Adoption and Digital Transformation in SMEs

Abstract

This study examines how SMEs adopt AI using a qualitative design informed by Socio-Technical Systems Theory. The findings indicate that AI adoption is shaped by the interaction of technical constraints, organizational routines, and external pressures such as client expectations and policy uncertainty. Leadership engagement, data infrastructure, and workforce dynamics play a central role in influencing implementation progress. The study provides practical guidance for supporting more context-sensitive and adaptive approaches to AI-enabled transformation in SMEs.