AI-powered smart distribution and firm performance through sustainable digital marketing innovation and sustainability commitment

This research looks at how artificial intelligence (AI) powered smart distribution methods affect performance in fast-moving consumer goods (FMCG), including whether sustainable digital marketing innovations serve to mediate those relationships, and how the level of commitment to sustainability moderates that effect. A sample of 212 distribution, marketing, and sustainability managers and executives from leading FMCG was surveyed using a quantitative methodology in United Arab Emirates (UAE). Findings from structural equation modeling tests indicate that AI powered smart distribution methods have a positive impact on business performance, including through sustainable digital marketing innovations; that sustainable digital marketing innovations have a positive impact on performance. Furthermore, sustainability commitment has a direct positive effect on business performance and a positive moderating effect between AI powered smart distribution methods and business performance. There was no evidence of the mediating effect of sustainable marketing innovations. It is possible that the effects of operational efficiencies occur more quickly. This study contributes to theory by integrating resource-based and sustainability perspectives and has practical implications for FMCG managers to leverage technology, innovation, and sustainability to achieve competitive advantage in UAE. Additionally, results of this study are helpful to achieve Sustainable Development Goals (SDG): SDG 12 and SDG 13.