“ARTIFICIAL INTELLIGENCE AND DIGITAL TECHNOLOGIES AS DRIVERS OF SUSTAINABLE BUSINESS PERFORMANCE IN MSMES AND STARTUPS: EVIDENCE FROM EMERGING ECONOMIES”
DOI:
https://doi.org/10.69980/827nvc84Keywords:
Digital transformation, Business sustainability, Digital capabilities, Business intelligenceAbstract
Artificial intelligence and digital technologies are increasingly transforming how micro, small, and medium-sized businesses and startups pursue resilient growth in emerging economies. These enterprises play a crucial part in inclusive economic development but often face constraints related to resources, technology, and sustainability implementation. The rapid adoption of Intelligent systems–driven tools and electronic technology such as cloud computing, data analytics, digital platforms, and automation offers new opportunities to overcome these limitations and improve sustainable business performance. The relationship between the adoption of digital technology and sustainability results was examined using primary data gathered from business owners, founders, and senior managers. The findings demonstrate that artificial intelligence driven digital technologies significantly enhance operational efficiency, innovation capability, and sustainable business performance, thereby supporting strategic managerial decision making and long-term competitiveness. Improvements were also observed in resource optimization, waste reduction, workforce engagement, and market expansion. Furthermore, digital capabilities emerge as a key organizational factor that strengthens the relationship between technology adoption and sustainability outcomes. From a business management perspective, integrating business intelligence and digital transformation strategies strengthens operational performance and organizational capabilities. The results add to the expanding body of literature on digital sustainability while providing useful insights for entrepreneurs, managers and legislators looking to use artificial intelligence-enabled transformation for sustainable development in emerging economies.
References
1.Abid, N., Ceci, F., & Aftab, J. (2024). Attaining sustainable business performance under resource constraints: Insights from an emerging economy. Sustainable Development, 32(3), 2031-2048.
2.Aiudi, A., Francioni, B., Kyrdoda, Y., & Amerio, S. (2025). The role of artificial intelligence in international strategic decision-making for SMEs. Journal of Strategy and Management, 1-31.
3.Badghish, S., & Soomro, Y. A. (2024). Artificial intelligence adoption by SMEs to achieve sustainable business performance: application of technology–organization–environment framework. Sustainability, 16(5), 1864.
4.Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. V. (2013). Digital business strategy: toward a next generation of insights. MIS quarterly, 37(2), 471-482.
5.Bouncken, R. B., Kraus, S., & Roig-Tierno, N. (2021). Knowledge-and innovation-based business models for future growth: Digitalized business models and portfolio considerations. Review of Managerial Science, 15(1), 1-14.
6.Chen, Y. Y. K., Jaw, Y. L., & Wu, B. L. (2016). Effect of digital transformation on organisational performance of SMEs: Evidence from the Taiwanese textile industry’s web portal. Internet research, 26(1), 186-212.
7.Cui, J. (2025). AI-driven digital transformation and firm performance in Chinese industrial enterprises: Mediating role of green digital innovation and moderating effects of human-AI collaboration. arXiv preprint arXiv:2505.11558.
8.Elia, G., Margherita, A., & Passiante, G. (2020). Digital transformation and entrepreneurship: A systematic literature review. Global Business and Organizational Excellence, 39(6), 1-15.
9.Elkington, J., & Rowlands, I. H. (1999). Cannibals with forks: The triple bottom line of 21st century business. Alternatives Journal, 25(4), 42.
10.Farhana, S., Yua, D., Karamoozianc, A., Al-shawafid, A., & Alsheavif, A. N. (2025). AI-Enhanced TOE Framework for Sustainable Industrial Performance in Fragile and Transforming Economies: Evidence from Yemen and Saudi Arabia. arXiv preprint arXiv:2512.10333.
11.Floridi, L., Cowls, J., Beltrametti, M., Chatila, R., Chazerand, P., Dignum, V., ... & Vayena, E. (2018). AI4People—An ethical framework for a good AI society: Opportunities, risks, principles, and recommendations. Minds and machines, 28(4), 689-707.
12.Gomber, P., Koch, J. A., & Siering, M. (2017). Digital Finance and FinTech: current research and future research directions. Journal of business economics, 87(5), 537-580.
13.Hsiao, M. H. (2024). Resource integration and firm performance through organizational capabilities for digital transformation. Digital Transformation and Society.
14.Khan, S. A. R., Sheikh, A. A., Shamsi, I. R. A., & Yu, Z. (2025). The implications of artificial intelligence for small and medium-sized enterprises’ sustainable development in the areas of blockchain technology, supply chain resilience, and closed-loop supply chains. Sustainability, 17(1), 334.
15.Kraus, S., Breier, M., & Dasí-Rodríguez, S. (2020). The art of crafting a systematic literature review in entrepreneurship research. International Entrepreneurship and Management Journal, 16(3), 1023-1042.
16.Li, F. (2020). The digital transformation of business models in the creative industries. Arts Management Quarterly, 134, 6-14.
17.Nambisan, S. (2017). Digital entrepreneurship: Toward a digital technology perspective of entrepreneurship. Entrepreneurship theory and practice, 41(6), 1029-1055.
18.Omidmand, P., Dorri, R., Mozaffari, A., & Ataei, S. (2025). Artificial intelligence applications in lean startup methodology: A bibliometric analysis of research trends and future directions. arXiv preprint arXiv:2512.22164.
19.Saberi, S., Kouhizadeh, M., Sarkis, J., & Shen, L. (2019). Blockchain technology and its relationships to sustainable supply chain management. International journal of production research, 57(7), 2117-2135.
20.Sarker, I. H., Janicke, H., Mohsin, A., & Maglaras, L. (2026). SME-TEAM: leveraging trust and ethics for secure and responsible use of AI and LLMs in SMEs. npj Artificial Intelligence, 2(1), 12.
21.Thakkar, R. (2023). Digital transformation in SMEs from the perspective of sustainability. International Journal of Innovations in Science, Engineering And Management, 122-128. Guandalini, I. (2022). Sustainability through digital transformation: A systematic literature review for research guidance. Journal of Business Research, 148, 456-471.
22.Tornatzky, L. G., Fleischer, M., & Chakrabarti, A. K. (1990). The processes of technological innovation. (No Title).
23.Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of business research, 122, 889-901.
24.Vial, G. (2021). Understanding digital transformation: A review and a research agenda. Managing digital transformation, 13-66.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 EPH-International Journal of Business & Management Science

This work is licensed under a Creative Commons Attribution 4.0 International License.


