Abstract
This study examines whether institutional support, artificial intelligence (AI) literacy, and self-efficacy predict students' innovative behavior in higher business education in the context of growing AI use. Drawing on Social Cognitive Theory, we explain innovative behavior as an outcome shaped by the interaction between environmental conditions and personal capabilities. Empirically, the study relies on survey data collected from undergraduate students in North Macedonia to assess the effects of the three predictors on innovative behavior. The findings show that AI literacy emerges as the strongest predictor, while self-efficacy also has a positive and significant effect. In contrast, institutional support is positively related to innovative behavior but does not make a significant independent contribution. These results suggest that students' innovative actions depend more strongly on their competence and confidence than on support alone. The study contributes to the literature on AI in higher education by extending a social cognitive perspective to students' behavioral patterns related to innovation and highlights the importance of strengthening AI literacy and self-efficacy through higher education practice.

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