AI-Driven Product Development and Time-to-Market Acceleration in High-Tech SMEs

Authors

    Amir Hossein Taherzadeh * PhD student in Technology Management, Department of Industrial and Technology Management, Alborz Campus, University of Tehran, Tehran, Iran amir.taherzadeh@ut.ac.ir

Keywords:

Artificial intelligence, Product development, Time-to-market, High-tech SMEs, Process integration, Organizational readiness

Abstract

This study examines how AI adoption intensity, organizational readiness, and AI-enabled process integration influence product development efficiency and time-to-market acceleration in high-tech small and medium-sized enterprises. The research employed an applied, descriptive-analytical design using a cross-sectional survey of 210 high-tech SMEs across software, electronics, biomedical, and advanced manufacturing sectors. Data were gathered through a structured questionnaire assessing AI adoption, organizational readiness, process integration, and development outcomes, complemented by semi-structured interviews to contextualize quantitative findings. Statistical analyses included descriptive measures, correlation analysis, multiple regression models, and mediation testing using structural equation modeling to evaluate direct and indirect effects. Bootstrapped confidence intervals were applied to assess the significance of mediation pathways. AI adoption intensity demonstrated significant positive correlations with process integration (r = .68, p < .001), product development efficiency (r = .52, p < .001), and time-to-market reduction (r = .47, p < .001). Regression analyses revealed that AI adoption (β = .39, p < .001), organizational readiness (β = .21, p = .003), and process integration (β = .27, p < .001) significantly predicted time-to-market reduction, explaining 41% of its variance. Mediation analysis showed a significant indirect effect of AI adoption on time-to-market reduction via process integration (effect = 1.79, 95% CI: 0.94–2.80), indicating partial mediation. Group comparisons demonstrated that high AI adoption firms achieved substantially greater time-to-market reductions (23.41% vs. 9.74%, p < .001) and higher development efficiency than low adoption firms. AI adoption substantially enhances product development outcomes in high-tech SMEs, with process integration serving as a key mechanism through which these benefits materialize. Organizational readiness strengthens AI’s impact, indicating that both technological and structural capabilities are essential for accelerating innovation cycles. Strengthening AI integration practices can therefore support SMEs in achieving faster and more efficient market delivery.

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Published

2026-03-01

Submitted

2025-09-24

Revised

2025-12-14

Accepted

2025-12-15

Issue

Section

Articles

How to Cite

Taherzadeh, A. H. (2026). AI-Driven Product Development and Time-to-Market Acceleration in High-Tech SMEs. Future of Work and Digital Management Journal, 1-13. https://www.journalfwdmj.com/index.php/fwdmj/article/view/200

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