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Title:Ethical leadership and management of small- and medium-sized enterprises : the role of AI in decision making
Authors:ID Štrukelj, Tjaša (Author)
ID Dankova, Petya (Author)
Files:URL https://www.mdpi.com/2076-3387/15/7/274
 
.pdf Ethical_Leadership_and_Management_of_Small-_and_Medium-Sized_Enterprises.pdf (774,29 KB)
MD5: A2CD689272C2E7C3234E48F2DD1BC974
 
Language:English
Work type:Scientific work
Typology:1.01 - Original Scientific Article
Organization:EPF - Faculty of Business and Economics
Abstract:The integration of artificial intelligence (AI) within the decision-making processes of small- and medium-sized enterprises (SMEs) presents both significant opportunities and substan- tial ethical challenges. The aim of this paper is to provide a theoretical model depicting the interdependence of organisational decision-making levels and decision-making styles, with an emphasis on exploring the role of AI in organisations’ decision making, based on selected process dimension of the MER model of integral governance and management, particularly in relation to routine, analytical, and intuitive decision-making capabilities. The research methodology employs a comprehensive qualitative analysis of the scientific literature published between 2010 and 2024, focusing on AI implementation in SMEs, ethi- cal decision making in integral management, and regulatory frameworks governing AI use in business contexts. The findings reveal that AI technologies influence decision making across business policy, strategic, tactical, and operative management levels, with distinct implications for intuitive, analytical, and routine decision-making approaches. The analysis demonstrates that while AI can enhance data processing capabilities and reduce human biases, it presents significant challenges for normative–ethical decision making, requiring human judgment and stakeholder consideration. We conclude that effective AI integration in SMEs requires a balanced approach where AI primarily serves as a tool for data collection and analysis rather than as an autonomous decision maker. These insights contribute to the discourse on responsible AI implementation in SMEs and provide practical guidance for leaders navigating the complex interplay between (non)technological capabilities, ethical considerations, and regulatory requirements in the evolving business landscape.
Keywords:MER model of integral governance and management, strategic management, management process, intuitive decision making, responsible leadership, small- and medium-sized enterprises (SMEs), artificial intelligence (AI), AI regulatory frameworks, analytical decision making, routine decision making
Publication status:Published
Publication version:Version of Record
Submitted for review:13.06.2025
Article acceptance date:10.07.2025
Publication date:12.07.2025
Publisher:MDPI
Year of publishing:2025
Number of pages:str. 1-27
Numbering:Vol. 15, issue 7, [article no.] 274
PID:20.500.12556/DKUM-93698 New window
UDC:005.5:004.8
ISSN on article:2076-3387
COBISS.SI-ID:242469635 New window
DOI:10.3390/admsci15070274 New window
Publication date in DKUM:15.07.2025
Views:240
Downloads:23
Metadata:XML DC-XML DC-RDF
Categories:Misc.
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Record is a part of a journal

Title:Administrative sciences
Shortened title:Adm. sci.
Publisher:MDPI
ISSN:2076-3387
COBISS.SI-ID:520095769 New window

Document is financed by a project

Funder:ARIS - Slovenian Research and Innovation Agency
Project number:P5-0023-2020
Name:Podjetništvo za inovativno družbo

Funder:ARIS - Slovenian Research and Innovation Agency
Project number:BI-BA/24-25-001-2024
Name:Cilji trajnostnega razvoja za trajnostni razvoj podjetja

Licences

License:CC BY 4.0, Creative Commons Attribution 4.0 International
Link:http://creativecommons.org/licenses/by/4.0/
Description:This is the standard Creative Commons license that gives others maximum freedom to do what they want with the work as long as they credit the author.

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