Abstract

This study aims to examine the relationships among absorptive capacity, AI literacy, algorithmic thinking skills, and open innovation competency. The research sample comprised 308 undergraduate senior students majoring in entrepreneurship from both public and private higher education institutions in Thailand. Data were collected using a questionnaire developed based on a comprehensive literature review and validated for reliability and content validity. The findings, analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM), revealed that absorptive capacity significantly and positively influences AI literacy and algorithmic thinking skills. Furthermore, AI literacy and algorithmic thinking skills play crucial mediating roles in linking absorptive capacity with open innovation competency, with algorithmic thinking skills emerging as the most prominent structural factor contributing to open innovation success. The results underscore the importance of developing absorptive capacity, AI literacy, and algorithmic thinking skills to enhance open innovation competency among Gen Z entrepreneurship students. These findings provide actionable insights for educational institutions and organizations to design curricula or training programs that focus on technology skills and complex problem-solving capabilities, thereby preparing young entrepreneurs for the challenges of the digital economy.