TOWARDS A SUSTAINABILITY PERFORMANCE OF SMES: THE ROLES OF ARTIFICIAL INTELLIGENCE (AI), SOCIAL MEDIA ADOPTION, & DIGITAL COMPETENCIES

Abstract

A sustainable business means creating the right conditions to ensure long-term business success. It is about the core operations of a business, and it means looking ahead and planning strategically for the future. Sustainability encompasses four aspects: social, environmental, economic, and governance. Understanding trends and the long-term implications of decisions will allow companies to manage risks better, seize new opportunities, and adapt quickly to change. Thus, this study examines the influence of artificial intelligence (AI), social media adoption, and digital competencies on SMEs' sustainable performance. This study involved 218 SME women entrepreneurs who were purposively selected as the study sample. The developed questionnaire was distributed to the respondents face to face to obtain more accurate data. The study data analysis was conducted using the Statistical Package for Social Sciences (SPSS) and Structural Equation Modeling (SEM) software. The study findings showed a significant direct relationship between artificial intelligence (AI), social media adoption, digital competencies, and sustainable performance. The study findings also showed that digital competencies mediate the relationship between artificial intelligence (AI), social media adoption, and sustainable performance. Thus, access to technology is crucial in strengthening the competitiveness of entrepreneurs in the digital era. Mastery of technology facilitates daily business management and opens opportunities for growth and innovation. Therefore, support and learning opportunities for entrepreneurs in technology are important to help them succeed in this increasingly digital market.