<![CDATA[This study aims to examine the effects of AI Adoption and AI Literacy on Employee Performance and to investigate the mediating role of Work Autonomy in the MSME context. A quantitative cross-sectional design was employed using questionnaire data from 300 respondents, analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 3. The measurement model was assessed through reliability, convergent validity, and discriminant validity, while the structural model was evaluated using path coefficients and indirect effects. The results indicate that AI Adoption and AI Literacy are positively and significantly associated with both Work Autonomy and Employee Performance, and Work Autonomy is positively and significantly associated with Employee Performance. Work Autonomy also partially mediates the relationships between AI Adoption and Employee Performance and between AI Literacy and Employee Performance. This study contributes to the literature by integrating AI Adoption, AI Literacy, and Work Autonomy into a single framework to explain Employee Performance in MSMEs. The findings highlight Work Autonomy as an important mechanism through which employees’ AI adoption and literacy can translate into improved performance, offering a more nuanced understanding of the human and organizational implications of AI in the workplace.]]>
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