Artificial Intelligence as an Enabler of Digital Economic Transformation toward Sustainable MSMEs: A Qualitative Literature Review
DOI:
https://doi.org/10.61100/tacit.v4i2.371Keywords:
Artificial Intelligence, Digital Economic Transformation, MSMEs, Innovation, Competitive Advantage, SustainabilityAbstract
This study aims to analyze the role of AI as an enabler of digital economic transformation and synthesize the mechanisms linking AI utilization with sustainable MSME development. The study employs a qualitative literature review approach with descriptive-thematic analysis. The literature was obtained from Google Scholar, Scopus, Web of Science, and academic publisher platforms, covering publications from 2019 to 2026. Of the 50 articles identified, 25 articles were selected based on relevance, publication quality, topic alignment, and availability of information for the final synthesis. The findings indicate that AI serves as an enabling technology that strengthens digital transformation through automation, data analysis, prediction, personalization, and decision-making support. These capabilities enhance efficiency and innovation, which subsequently strengthen adaptability, competitiveness, and resilience while contributing to economic, social, and environmental sustainability. The benefits of AI depend on AI literacy, human resources, organizational readiness, infrastructure, data quality, and responsible governance. This study emphasizes that AI is an organizational capability enabler that can support long-term value creation and MSME sustainability.
References
Ahmad, B., Shafique, I., & Kalyar, M. N. (2025). AI capabilities driven sustainability: the effect of AI oriented- leadership and frugal innovation on firm sustainable performance. International Journal of Innovation, 13(2), e27943. https://doi.org/10.5585/2025.27943
Alwakid, W. N., & Dahri, N. A. (2025). Harnessing AI capabilities and green entrepreneurial orientation for sustainable SME performance using SEM analysis approach. Technology in Society, 83, 103007. https://doi.org/10.1016/j.techsoc.2025.103007
Ayu Widiarti, N. S., Utami, C. W., & Bernardus, D. (2025). Driving SME Performance through Digital and Network Capabilities: The Mediating Role of Innovation. Jurnal Ilmiah Manajemen Kesatuan, 13(5), 3727–3740. https://doi.org/10.37641/jimkes.v13i5.3737
Budiarto, D. S., Septiani, R. D., Yennisa, & Herawan, T. (2024). Competitive Advantage as a Bridge to Increase SMEs Sustainability. International Journal of Sustainable Development and Planning, 19(7), 2597–2603. https://doi.org/10.18280/ijsdp.190716
Costa Melo, Dr. I., Queiroz, G. A., Alves Junior, P. N., Sousa, T. B. de, Yushimito, W. F., & Pereira, J. (2023). Sustainable digital transformation in small and medium enterprises (SMEs): A review on performance. Heliyon, 9(3), e13908. https://doi.org/10.1016/j.heliyon.2023.e13908
Denicolai, S., Zucchella, A., & Magnani, G. (2021). Internationalization, digitalization, and sustainability: Are SMEs ready? A survey on synergies and substituting effects among growth paths. Technological Forecasting and Social Change, 166, 120650. https://doi.org/10.1016/j.techfore.2021.120650
Dwivedi, Y. K., Hughes, L., Ismagilova, E., Aarts, G., Coombs, C., Crick, T., Duan, Y., Dwivedi, R., Edwards, J., Eirug, A., Galanos, V., Ilavarasan, P. V., Janssen, M., Jones, P., Kar, A. K., Kizgin, H., Kronemann, B., Lal, B., Lucini, B., … Williams, M. D. (2021). Artificial Intelligence (AI): Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research, practice and policy. International Journal of Information Management, 57, 101994. https://doi.org/10.1016/j.ijinfomgt.2019.08.002
Firdaussiah, S. N., Sutjipto, M. R., & Hidayat, S. (2026). Optimizing Company Resources for Sustainable Competitive Advantage: The Mediating Role of Digital Transformation in Indonesian MSMEs. International Journal of Applied Business and International Management, 11(1), 224–241. https://doi.org/10.32535/ijabim.v11i1.4524
Fitriyanti, F., Sari, P., Baitunnisa, N. C., Rohmana, Y., & Nuriansyah, F. (2026). The Utilization Of Artificial Intelligence In Promoting Msme Sustainability: A Systematic Literature Review. Proceedings of the 4th International Conference on Education, Economics, Business, Entrepreneurship, and Finance (ICEBEF 2026), 4(2), 1–5.
Hamid, E. S., & Artha, B. (2026). Artificial Intelligence Adoption, Implementation Barriers, and Business Impact in Small and Medium-Sized Enterprises: A Systematic Literature Review. Archives of Business Research, 14(07), 86–110. https://doi.org/10.14738/abr.1407.12031
Hussain, A., & Rizwan, R. (2024). Strategic AI adoption in SMEs: A Prescriptive Framework. Computers and Society, 1, 1–17.
Isa, M., Nurohman, Y. A., & Qurniawati, R. S. (2024). Innovation capabilities and performance of small and medium-sized enterprises in Indonesia. Acta Commercii, 24(1). https://doi.org/10.4102/AC.v24i1.1242
Maharani, R. (2023). Organizational Readiness for AI Adoption in Indonesian Manufacturing SMEs. Journal of Sustainability Industrial Engineering and Management System, 2(1).
Mikalef, P., & Gupta, M. (2021). Artificial intelligence capability: Conceptualization, measurement calibration, and empirical study on its impact on organizational creativity and firm performance. Information & Management, 58(3), 103434. https://doi.org/10.1016/j.im.2021.103434
Mumcu, G., & Brieger, S. A. (2026). Artificial Intelligence as a Catalyst for Environmental and Social Sustainability Practices in SMEs: The Moderating Role of Sustainability, Digitalization, and Innovation Barriers. Corporate Social Responsibility and Environmental Management, 1–22. https://doi.org/10.1002/csr.70512
Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., Akl, E. A., Brennan, S. E., Chou, R., Glanville, J., Grimshaw, J. M., Hróbjartsson, A., Lalu, M. M., Li, T., Loder, E. W., Mayo-Wilson, E., McDonald, S., … Moher, D. (2021). The PRISMA 2020 statement: an updated guideline for reporting systematic reviews. Systematic Reviews, 10(1), 89. https://doi.org/10.1186/s13643-021-01626-4
Peretz-Andersson, E., Tabares, S., Mikalef, P., & Parida, V. (2024). Artificial intelligence implementation in manufacturing SMEs: A resource orchestration approach. International Journal of Information Management, 77(8), 1–23. https://doi.org/10.1016/j.ijinfomgt.2024.102781
Philbin, S., Viswanathan, R., & Telukdarie, A. (2022). Understanding how digital transformation can enable SMEs to achieve sustainable development: A systematic literature review. Small Business International Review, 6(1), e473. https://doi.org/10.26784/sbir.v6i1.473
Rajaram, K., & Tinguely, P. N. (2026). Generative Artificial Intelligence in Small and Medium Enterprises: Navigating its Promises and Challenges. Computers and Society, 1, 1–31.
Roblek, V., Meško, M., Pušavec, F., & Likar, B. (2021). The Role and Meaning of the Digital Transformation As a Disruptive Innovation on Small and Medium Manufacturing Enterprises. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.592528
Rupeika-Apoga, R., & Petrovska, K. (2022). Barriers to Sustainable Digital Transformation in Micro-, Small-, and Medium-Sized Enterprises. Sustainability, 14(20), 13558. https://doi.org/10.3390/su142013558
Sari, M. P., & Sarumpaet, T. L. (2025). Sustainable Innovations in MSMEs During the Era of Digital Transformation. Jurnal Bisnis Dan Manajemen, 5(2), 119–127.
Sawang, S., & Sornlertlamvanich, V. (2026). Artificial Intelligence (AI) Maturity in Small and Medium-Sized Enterprises: A Framework of Internalized and Ecosystem-Embedded Capabilities. Computers and Society, 1, 1–18.
Soomro, R. B., Al-Rahmi, W. M., Dahri, N. A., Almuqren, L., Al-mogren, A. S., & Aldaijy, A. (2025). A SEM–ANN analysis to examine impact of artificial intelligence technologies on sustainable performance of SMEs. Scientific Reports, 15(1), 5438. https://doi.org/10.1038/s41598-025-86464-3
Troise, C., Corvello, V., Ghobadian, A., & O’Regan, N. (2022). How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era. Technological Forecasting and Social Change, 174, 121227. https://doi.org/10.1016/j.techfore.2021.121227
Utomo, B. P. C., & Jaafar, J. (2026). The role of big data analytics and AI adoption on green innovation and sustainable SMES performance. Diponegoro International Journal of Business, 9(1), 64–76. https://doi.org/10.14710/dijb.9.1.2026.64-76
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003
Winarsih, W., Mutoharoh, M., Tahar, E., & Aziz, I. (2020). The Role of Fintech and Financial Literacy on SMEs Sustainability. Proceedings of the 1st International Conference on Islamic Civilization, ICIC 2020, 27th August 2020, Semarang, Indonesia, 1–15. https://doi.org/10.4108/eai.27-8-2020.2303270
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Technology and Society Perspectives (TACIT)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
