The Synergy of Green Entrepreneurship and AI Adoption in Enhancing Sustainable Business Performance Among SMEs in Indonesia

Yona Octiani Lestari, Eka Ananta Sidharta, Ilfi Nur Diana, Misbahul Munir, Irmayanti Hasan, Fitri Romadhon, Anin Dyah Luthfiani, Bunga Annisa Lenanta, Nur Fadjrih Asyik, Rusdiyanto

Abstract

This study examines the moderating role of artificial intelligence (AI) adoption in the relationships among green entrepreneurial intention (GEI), green entrepreneurial behaviour (GEB), and sustainable business performance (SBP) among 151 small and medium-sized enterprises (SMEs) in Gresik, East Java, Indonesia. The study also evaluates the direct effects of GEI on GEB and of GEB on SBP. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) after the measurement model was confirmed to demonstrate adequate validity and reliability. The results show that AI adoption has positive and significant effects on GEB and SBP. GEI also positively influences GEB, while GEB has a significant positive effect on SBP. However, the moderating effects of AI adoption are negative, indicating that greater AI adoption does not necessarily strengthen the relationships among green entrepreneurial intention, green entrepreneurial behaviour, and sustainable business performance. These findings suggest that the effectiveness of AI adoption depends on organizational readiness, digital competence, top-management support, data quality, and the firm’s ability to integrate AI into business processes. From a practical perspective, AI adoption should be supported by training, technological assistance, financial support, and digital-literacy development. Such measures may strengthen green entrepreneurial behaviour, improve sustainable business performance, and enhance the competitiveness of SMEs in response to growing sustainability demands.

 

Keywords: artificial intelligence adoption; green entrepreneurial intention; green entrepreneurial behaviour; sustainable business performance.

 

DOI https://doi.org/10.55463/issn.1674-2974.53.9.3


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References


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