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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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Raheem Bux Soomro & Sanam Gul Memon & Nisar Ahmed Dahri & Waleed Mugahed Al-Rahmi & Khalid Aldriwish & Anas A. Salameh & Ahmad Samed Al-Adwan & Atif Saleem, 2024. "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," Sustainability, MDPI, vol. 16(17), pages 1-29, August.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:17:p:7351-:d:1464585
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    References listed on IDEAS

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    Cited by:

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    2. Xiyu Wang & Ying Yan, 2024. "A Study on the Impact of Digital Transformation on Enterprise Performance: The Mediating Role of Dual Innovation and the Moderating Role of Management Power," Sustainability, MDPI, vol. 16(21), pages 1-20, October.
    3. Mohammed Alquraish, 2025. "Digital Transformation, Supply Chain Resilience, and Sustainability: A Comprehensive Review with Implications for Saudi Arabian Manufacturing," Sustainability, MDPI, vol. 17(10), pages 1-33, May.

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