Knowledge-driven GenAI adoption in higher education: examining the roles of literacy, self-efficacy and innovation culture

PurposeGenerative AI (GenAI) is becoming increasingly integral to the knowledge work of educational institutions. However, just having access is not enough for meaningful integration in teaching. Successful adoption necessitates preparation, cognitive trust and an institutional culture that fosters experimentation and creativity. The purpose of this study is to use the Technological Pedagogical Content Knowledge (TPACK) framework to examine the influence of GenAI readiness factors (GenAI literacy, GenAI pedagogical self-efficacy and digital innovation culture) on GenAI-enabled pedagogical outcomes (teaching innovation intensity and student engagement enablement). The model also assesses whether educators' perceived academic utility and cognitive trust in GenAI help explain how readiness turns into innovation and engagement.Design/methodology/approachData were collected from 233 faculty members in digitally mature higher education environments. Multi-item measurement scales were used to measure GenAI literacy, GenAI pedagogical self-efficacy, digital innovation culture, teaching innovation intensity and student engagement enablement. This study investigates not only whether GenAI is adopted but also what drives educators toward confidence and meaningful teaching transformation. The findings pave the way for how TPACK works in a GenAI-enabled academic environment.FindingsGenAI literacy is not significantly associated with perceived academic utility, indicating that knowing how to use GenAI does not automatically make educators view it as academically valuable. In contrast, GenAI pedagogical self-efficacy and a strong digital innovation culture significantly enhance perceived utility, which in turn strengthens educators' cognitive trust in GenAI. Higher perceived utility and trust encourage more innovative teaching practices and more profound student engagement. Both pedagogical self-efficacy and innovation culture improve teaching and engagement outcomes only through perceived utility and cognitive trust. Moreover, GenAI literacy shows no direct or indirect effects on GenAI-enabled teaching innovation.Originality/valueAccording to this study, the TPACK highlights the need for both access to GenAI and technical familiarity with its features. Sustainable adoption of GenAI will occur when instructors possess confidence in their competencies, recognize the technology as actually beneficial and function within a culture that fosters creativity. The results show that using GenAI-enabled teaching methods is not mainly a problem with technology; instead, the problems are with the culture of the institution, the trust of the educators and the growth of their skills. So, schools need to focus on building pedagogical self-efficacy, trust in AI-supported processes and psychological safety that encourages experimentation.