From Readiness to Performance: Modelling AI-Enabled HR Analytics Adoption Capability as a Second-Order Formative Construct in Nigerian SMEs
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Abstract
Objective: This study examines how AI-enabled HR Analytics Adoption Capability (AIHRA), a second-order formative construct, is associated with operational performance among Nigerian SMEs.
Design: Drawing on UTAUT2, the Resource-Based View, and Socio-Technical Systems Theory, a survey was administered to 296 respondents across SMEs in Lagos, Abuja, Port Harcourt, and Kano. PLS-SEM via SmartPLS 4.0.9.9 was used for analysis.
Findings: Technological Readiness (weight = 0.584, p<0.001) and Organisational Support (weight = 0.532, p<0.001) significantly form AIHRA. Perceived Value and Use is non-significant (0.119, p = 0.219) but shows absolute importance. AIHRA is positively associated with operational performance (β = 0.626, R2 = 0.392).
Policy Implications: Managers and policymakers should prioritise digital infrastructure and organisational support before AI procurement.
Originality: This study contributes an empirically tested higher-order formative model linking AI-HR analytics adoption capability to operational performance in Nigerian SMEs, extending prior technology-organisation-environment evidence by showing structural determinants dominate perceptual constructs within a multi-theory, capability-based specification.
Keywords
- operational performance
- technological readiness
- Organisational Support
- Digital Transformation
- Emerging Markets
- HR practices
Categories
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Copyright (c) 2026 Michael Raphael Onenyi, Peter Ugbedeojo Nelson, Muhammed Idris Ogbike

This work is licensed under a Creative Commons Attribution 4.0 International License.
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2025-122026-11
Article history
- ReceivedApril 2, 2026
- Published July 19, 2026
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