Volume 5 number 1 (04)

Original research

SMALL AI AS A FRUGAL INNOVATION: DESIGN FIT, TECHNOLOGY ADOPTION, AND SOCIO-ECONOMIC OUTCOMES IN KENYA AND GHANA

Pages 41-50

DOI 10.61552/JIBI.2027.01.004

ORCID Tmari Belgacm


Abstract: This study evaluates how Small AI design fit influences technology adoption and socio-economic outcomes across agriculture, education, and small businesses in developing markets. Grounded in Frugal Innovation Theory, we adopted an explanatory sequential mixed-methods design combining a survey of 384 end-users in Kenya and Ghana with four embedded qualitative case studies. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), we find that Small AI design-fit — offline capability, low-cost hardware compatibility, and local language adaptation — has a strong direct effect on socio-economic impact (beta = 0.38, p < 0.001) and adoption intensity (beta = 0.42, p < 0.001). Digital readiness and perceived trust significantly mediate these relationships. Institutional support positively moderates the link (beta = 0.16, p < 0.01). Integrating AI into familiar low-tech channels reduces adoption barriers. Tailoring AI to local infrastructure constraints thus offers a scalable pathway to inclusive digital development.

Keywords: Small AI, Frugal Innovation, Digital Divide, Technology Adoption, Sub-Saharan Africa.

Received: 02.07.2026. Revised: 08.09.2026. Accepted: 01.10.2026.