In the evolving landscape of sustainable development, artificial intelligence (AI) has become a critical enabler for small and medium-sized enterprises (SME) striving to achieve entrepreneurial sustainable development goals (ESDG). This study investigates how AI capabilities, encompassing human skills, technology, data-driven culture (DDC), and organizational learning intensity, contribute to ESDGs through both internal organizational mechanisms and external market dynamics. Data are collected from 460 employees across various SMEs in China and analyzed via partial least squares-structural equation modeling. The results demonstrate that green ambidexterity innovation (GAI) significantly mediates the relationship between AI capabilities and ESDGs. Market resilience capacity (MRC) also serves as a significant mediator across most AI dimensions, except for DDC. Meanwhile, green entrepreneurial orientation (GEO) shows significant but negative mediating effects across AI dimensions. Market turbulence does not significantly moderate the effects of GAI and MRC on ESDGs; meanwhile, it positively moderates the relationship between GEO and ESDGs. These findings contribute to the sustainability and entrepreneurship literature by revealing how AI readiness and innovation orientation enable SMEs to circumnavigate complex market environments. They also underscore the need for SMEs and policymakers to prioritize AI-driven strategies and innovation, and build resilience for sustainable entrepreneurial performance.
Shahzad et al. (Thu,) studied this question.