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The rapid development of generative artificial intelligence presents transformative opportunities for resource-constrained small and medium-sized enterprises (SMEs). This study investigates how generative AI strengthens the entrepreneurial resilience of Taiwanese SMEs through the mediating role of entrepreneurial orientation, while examining the moderating influence of market turbulence. Employing structural equation modeling, we analyze survey data from 350 Taiwanese SMEs to examine the relationships among generative AI capabilities, entrepreneurial orientation, entrepreneurial resilience, and market turbulence. Our findings reveal that generative AI capabilities significantly and positively influence entrepreneurial orientation, validating that this technology, as a lower-order dynamic capability, effectively supports the development of higher-order entrepreneurial orientation. Entrepreneurial orientation demonstrates significant positive effects on entrepreneurial resilience, while generative AI capabilities directly and positively impact resilience. Mediation analysis confirms that entrepreneurial orientation plays a partial mediating role, and market turbulence significantly enhances the positive influence of entrepreneurial orientation on entrepreneurial resilience. Theoretically, this research integrates dynamic capability theory and entrepreneurial orientation theory, constructing a comprehensive framework for understanding how generative AI influences organizational resilience. Practically, our findings provide strategic guidance for SME managers regarding technology adoption, recommending prioritized investments in human skill development, technological infrastructure construction, and data-driven culture cultivation. This study offers crucial theoretical foundations and practical guidance for Taiwanese SMEs navigating digital transformation.
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