The Adoption of Digital Technologies by Small and Medium-Sized Enterprises for Sustainability and Value Creation in Pakistan: The Application of a Two-Staged Hybrid SEM-ANN Approach

Raheem Bux Soomro, Sanam Gul Memon, Nisar Ahmed Dahri, Waleed Mugahed Al-Rahmi (), Khalid Aldriwish, Anas A. Salameh, Ahmad Samed Al-Adwan and Atif Saleem
Additional contact information
Raheem Bux Soomro: Institute of Business Administration, Shah Abdul Latif University, Khairpur 66020, Pakistan
Sanam Gul Memon: Government College for Women, Khairpur 66020, Pakistan
Nisar Ahmed Dahri: Faculty of Social Science and Humanities, School of Education, Universiti Teknologi Malaysia, Skudai 81310, Johor, Malaysia
Waleed Mugahed Al-Rahmi: Department of Management Information System, College of Business Administration, Dar Al Uloom University, Al Falah, Riyadh 13314, Saudi Arabia
Khalid Aldriwish: Computer Science Department, College of Computer Sciences and Information Technology, Majmaah University, Al Majmaah 11952, Saudi Arabia
Anas A. Salameh: Department of Management Information Systems, College of Business Administration, Prince Sattam Bin Abdulaziz University, 165, Al-Kharj 11942, Saudi Arabia
Ahmad Samed Al-Adwan: Department of Business Technology, Hourani Center for Applied Scientific Research, Business School, Al-Ahliyya Amman University, Amman 19111, Jordan
Atif Saleem: School of Education, University of Limerick, V94 T9PX Limerick, Ireland

Sustainability, 2024, vol. 16, issue 17, 1-29

Abstract: Digital technologies have revolutionized the business field, offering significant opportunities for small and medium-sized enterprises (SMEs) to enhance sustainability and value creation. This study investigates the impact of digital technology adoption on economic and social value creation, as well as SME performance. Specifically, it examines how social media applications, big data analytics, IoT applications, blockchain applications, and AI-enabled applications influence economic and social value within SMEs. We employed a hybrid approach integrating Structural Equation Modeling (SEM) and Artificial Neural Network (ANN) techniques using SmartPLs 4.0 Application; this research analyzes these relationships. For our analysis, data were collected from 305 SME managers operating in Upper Sindh, Pakistan, specifically from major cities like Sukkur, Larkana, Shikarpur, Jacobabad, and Khairpur. The findings reveal that social media applications, big data analytics, IoT applications, and blockchain applications significantly contribute to both economic and social value creation for SMEs. Conversely, AI-enabled applications show no significant impact on value creation. Importantly, economic and social value creation positively correlates with enhanced SME performance. This study enriches our understanding of how digital technologies influence SMEs in Pakistan, particularly in enhancing economic and social value creation. Through advanced methodologies and rigorous analysis, it bridges theory with practical applications in SMEs’ digital transformation.

Keywords: digital technologies; small and medium-sized enterprises (SMEs); economic value creation; social value creation; sustainability; hybrid modeling (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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