Artificial Intelligence Adoption and Startup Performance: The Moderating Role of Government Startup Schemes
Artificial Intelligence (AI) has increasingly become an important technological capability for startups seeking to improve innovation, operational efficiency, decision-making and market competitiveness. However, the extent to which AI adoption contributes to startup performance may depend on the availability of appropriate institutional and government support. This study examines the relationship between AI adoption and startup performance and investigates the moderating role of government startup schemes. Primary data were collected from 100 startup entrepreneurs using a structured questionnaire. The study considers AI adoption as the independent variable, startup performance as the dependent variable and government startup schemes as the moderating variable. Descriptive statistics, correlation analysis, regression analysis and moderation analysis were proposed to examine the relationships among the variables. The findings indicate a positive relationship between AI adoption and startup performance, suggesting that startups using AI more extensively may achieve better innovation, productivity, decision-making and competitive outcomes. Government startup schemes are expected to strengthen this relationship by providing financial assistance, incubation, training, mentoring and technological support. The study highlights the importance of integrating AI capabilities with effective government support mechanisms to enhance startup growth and sustainability.