Dual effects of leader symbolization in AI adoption: A cross-cultural study of SMEs

This study examines the dual impact of leaders’ artificial intelligence (AI) symbolization on employees’ job-crafting behaviors using a cross-cultural analysis of SMEs in China and Pakistan. Based on signaling theory, the study examines how organizational support acts as a crucial moderating factor in the ways that leaders’ overt acceptance of AI influences employee change readiness, perceived threat, and job crafting. The study employs partial least squares structural equation modeling (PLS-SEM, SmartPLS 4.0) to examine survey data collected from employees in AI-driven sectors in two countries: China (n = 195) and Pakistan (n = 165). The findings indicate that leaders’ AI symbolized concurrently fosters proactive job crafting and change readiness, while intensifying feelings of threat. The study reveals cross-cultural distinctions: in China’s policy-oriented AI environment, employees demonstrate increased dependence on leadership signals due to institutional support and collectivist principles, while in Pakistan’s developing AI sector, economic instability and skill deficiencies heighten threat perceptions. Organizational support serves as a crucial buffer, considerably alleviating adverse impacts in Pakistan and enhancing beneficial outcomes in both contexts. This research contributes to the literature on leadership symbolization and AI adoption by highlighting the contextual duality of leader influence across cultures. It provides pragmatic insights for SMEs undergoing AI transitions, highlighting the necessity for customized communication strategies and support systems to use AI’s advantages while alleviating employee apprehensions.