WHY DO ENTERPRISES ADOPT AI? GOVERNMENT AI READINESS AND CULTURAL LEADERSHIP CONTEXTS IN EUROPE

Radu Oana-Roxana
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Radu Oana-Roxana: OVIDIUS UNIVERSITY OF CONSTANTA, ROMANIA

Annals - Economy Series, 2026, vol. 2, 406-420

Abstract: This study examines the extent to which the adoption of artificial intelligence (AI) at the enterprise level in Europe is shaped by government institutional readiness and national cultural dimensions. Integrating institutional theory with Hofstede's cultural dimensions model, the research analyzes how the Government AI Readiness Index, Uncertainty Avoidance (UAI), and Long-Term Orientation (LTO) influence AI adoption in 31 European countries in 2025. Using a multiple linear regression model with interaction terms, the study tests the direct and moderating effects of these factors on the proportion of businesses using AI technologies. The results confirm that government institutional readiness exerts a significant positive effect on AI adoption (β = .450, p = .006), explaining 52.4% of the variation in adoption (R² = .524, F = 7.147, p

Keywords: artificial intelligence adoption; institutional readiness; cultural dimensions; strategic leadership; uncertainty avoidance; digital transformation (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cbu:jrnlec:y:2026:v:2:p:406-420

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