DIGITAL TRANSFORMATION AS A CULTURAL PROCESS: AI-ENABLED RELATIONSHIP MARKETING AND SME COMPETITIVENESS

Emerging digital transformation technologies within SME businesses demonstrate the importance of the socially embedded practices of value culture and Artificial Intelligence (AI)-driven relationship marketing. This study presents the effect of the value culture and AI-driven relational marketing practices of SMEs as aligners of the impact of adopting technologies and AI-driven relational practices using a mixed-methods research design consisting of a qualitative explanatory design and a quantitative cross-sectional study involving 320 SMEs engaged in digital activities in Indonesia. Using PLS-SEM, this study estimates a range of relationships, positive and negative, direct and indirect, among the defining elements of competitiveness. PLS-SEM demonstrates that the use of digital transformative technologies and practices with SME businesses improves relational marketing and competitiveness. Cultural values impact practices and technologies. This study defines competitiveness in digitally transformative practices as the relational culture of adapted business practices and technology, showing that the digital transformative practices of SMEs is a culturally embedded relational process and provide the AI-driven relational marketing practices to increase value.