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Kergroach, S., & Héritier, J. (2025). Emerging Divides in the Transition to Artificial Intelligence. In OECD Regional Development Papers (Issue No. 147). Organization for Economic Cooperation and Development (OECD).

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• TITLE: Automation and Cost Structures in SMEs: Are Small Firms Disadvantaged vs. Multinationals?

  AUTHORS: Suman Banerjee, Aayush Dhar, Kush Dave, Ayushmaan Mukherjee

  KEYWORDS: Finance, Automation, MNCs, SMEs, Artificial Intelligence, RBV, Economies of Scale, Technology

  JOURNAL NAME: Open Journal of Business and Management, Vol.14 No.2, March 10, 2026

  ABSTRACT: This paper examines how automation reshapes the cost structures of small and medium-sized enterprises (SMEs) compared to multinational corporations (MNCs). Using the dual lenses of economies of scale and the resource-based view, the study analyzes financial, human capital, and informational constraints that disadvantage SMEs in adopting capital-intensive technologies such as artificial intelligence, robotics, and enterprise platforms. Comparative case studies from Germany, Japan, India, Sub-Saharan Africa, the United States, and the European Union highlight persistent adoption gaps shaped by institutional context. Findings suggest that while automation-as-a-service and supply-chain integration offer partial relief, structural disadvantages risk widening productivity inequalities worldwide.