IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i8p3599-d1636022.html

Exploring the Influence of AI Adoption and Technological Readiness on Sustainable Performance in Pakistani Export Sector Manufacturing Small and Medium-Sized Enterprises

Author

Listed:
  • Khalid Jamil

    (College of Economics and Management, Beijing University of Technology, Beijing 100124, China)

  • Wen Zhang

    (College of Economics and Management, Beijing University of Technology, Beijing 100124, China)

  • Aliya Anwar

    (College of Economics and Management, Beijing University of Technology, Beijing 100124, China)

  • Sohaib Mustafa

    (College of Economics and Management, Beijing University of Technology, Beijing 100124, China)

Abstract

This study examines the impact of technological integration on sustainable performance in Pakistani manufacturing SMEs from the export sector, focusing on the mediating role of employee capacity building and the moderating role of organizational learning, drawing on dynamic capabilities theory. Data were collected from manufacturing SMEs in Pakistan via a structured questionnaire, and structural equation modeling (SEM) was employed using Smart-PLS (4.1) for analysis. The results reveal that both AI adoption and technological readiness significantly enhance employee capacity building, which, in turn, positively impacts sustainable performance. Employee capacity building significantly mediates the relationships between both AI adoption and sustainable performance as well as between technological readiness and sustainable performance. Notably, organizational learning shows a significant moderating effect between technological readiness and employee capacity building but an insignificant moderating effect between AI adoption and employee capacity building. These findings offer actionable insights for managers in optimizing AI and readiness strategies to enhance capacity building and sustainable outcomes. This study contributes to the literature by being one of the first to integrate AI adoption and technological readiness with employee capacity building as a mediator and organizational learning as a moderator in the context of SMEs. Unlike prior research, which typically examines these factors independently, our framework offers a holistic approach to understanding sustainable performance.

Suggested Citation

  • Khalid Jamil & Wen Zhang & Aliya Anwar & Sohaib Mustafa, 2025. "Exploring the Influence of AI Adoption and Technological Readiness on Sustainable Performance in Pakistani Export Sector Manufacturing Small and Medium-Sized Enterprises," Sustainability, MDPI, vol. 17(8), pages 1-28, April.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:8:p:3599-:d:1636022
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/8/3599/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/8/3599/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lu, Hui Ting & Li, Xue & Yuen, Kum Fai, 2023. "Digital transformation as an enabler of sustainability innovation and performance – Information processing and innovation ambidexterity perspectives," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    2. Ren, Xiaohang & Zeng, Gudian & Sun, Xianming, 2023. "The peer effect of digital transformation and corporate environmental performance: Empirical evidence from listed companies in China," Economic Modelling, Elsevier, vol. 128(C).
    3. Jiachen Li & Xiu Jin, 2024. "The Impact of Artificial Intelligence Adoption Intensity on Corporate Sustainability Performance: The Moderated Mediation Effect of Organizational Change," Sustainability, MDPI, vol. 16(21), pages 1-21, October.
    4. Reem M. Mashat & Safinaz H. Abourokbah & Mohammad Asif Salam, 2024. "Impact of Internet of Things Adoption on Organizational Performance: A Mediating Analysis of Supply Chain Integration, Performance, and Competitive Advantage," Sustainability, MDPI, vol. 16(6), pages 1-25, March.
    5. Nguyen Thi Mai Anh & Le Thi Khanh Hoa & Lai Phuong Thao & Duong Anh Nhi & Nguyen Thanh Long & Nguyen Thanh Truc & Vu Ngoc Xuan, 2024. "The Effect of Technology Readiness on Adopting Artificial Intelligence in Accounting and Auditing in Vietnam," JRFM, MDPI, vol. 17(1), pages 1-15, January.
    6. Antonio Miceli & Birgit Hagen & Maria Pia Riccardi & Francesco Sotti & Davide Settembre-Blundo, 2021. "Thriving, Not Just Surviving in Changing Times: How Sustainability, Agility and Digitalization Intertwine with Organizational Resilience," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    7. Jerez-Gomez, Pilar & Cespedes-Lorente, Jose & Valle-Cabrera, Ramon, 2005. "Organizational learning capability: a proposal of measurement," Journal of Business Research, Elsevier, vol. 58(6), pages 715-725, June.
    8. Kannan Govindan & Mia Hasanagic, 2018. "A systematic review on drivers, barriers, and practices towards circular economy: a supply chain perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 278-311, January.
    9. Gabrielle Samuel & Federica Lucivero & Lucas Somavilla, 2022. "The Environmental Sustainability of Digital Technologies: Stakeholder Practices and Perspectives," Sustainability, MDPI, vol. 14(7), pages 1-14, March.
    10. Issa, Helmi & Jabbouri, Rachid & Palmer, Mark, 2022. "An artificial intelligence (AI)-readiness and adoption framework for AgriTech firms," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    11. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    12. Majid Zamiri & Ali Esmaeili, 2024. "Methods and Technologies for Supporting Knowledge Sharing within Learning Communities: A Systematic Literature Review," Administrative Sciences, MDPI, vol. 14(1), pages 1-34, January.
    13. Abas Rawashdeh & Ayman Bahjat Abdallah & Moayyad Alfawaeer & Mohammad Al Dweiri & Feras Al-Jaghbeer, 2024. "The Impact of Strategic Agility on Environmental Sustainability: The Mediating Role of Digital Transformation," Sustainability, MDPI, vol. 16(3), pages 1-17, February.
    14. Jorge Luis García Alcaraz & José Roberto Díaz Reza & Karina Cecilia Arredondo Soto & Guadalupe Hernández Escobedo & Ari Happonen & Rita Puig I Vidal & Emilio Jiménez Macías, 2022. "Effect of Green Supply Chain Management Practices on Environmental Performance: Case of Mexican Manufacturing Companies," Mathematics, MDPI, vol. 10(11), pages 1-19, May.
    15. Md. Abu Issa Gazi & Md. Kazi Hafizur Rahman & Abdullah Al Masud & Mohammad Bin Amin & Naznin Sultana Chaity & Abdul Rahman bin S. Senathirajah & Masuk Abdullah, 2024. "AI Capability and Sustainable Performance: Unveiling the Mediating Effects of Organizational Creativity and Green Innovation with Knowledge Sharing Culture as a Moderator," Sustainability, MDPI, vol. 16(17), pages 1-19, August.
    16. Dalenogare, Lucas Santos & Benitez, Guilherme Brittes & Ayala, Néstor Fabián & Frank, Alejandro Germán, 2018. "The expected contribution of Industry 4.0 technologies for industrial performance," International Journal of Production Economics, Elsevier, vol. 204(C), pages 383-394.
    17. Zahid Yousaf & Daniela Mihai & Umair Tanveer & Mădălina Brutu & Smaranda Toma & Sheikh Muhammad Zahid, 2022. "Organizational Innovativeness in the Circular Economy: The Interplay of Innovation Networks, Frugal Innovation, and Organizational Readiness," Sustainability, MDPI, vol. 14(11), pages 1-13, May.
    18. repec:ucp:bkecon:9780226316529 is not listed on IDEAS
    19. Rashmi Ranjan Panigrahi & Avinash K. Shrivastava & Karishma M. Qureshi & Bhavesh G. Mewada & Saleh Yahya Alghamdi & Naif Almakayeel & Ali Saeed Almuflih & Mohamed Rafik N. Qureshi, 2023. "AI Chatbot Adoption in SMEs for Sustainable Manufacturing Supply Chain Performance: A Mediational Research in an Emerging Country," Sustainability, MDPI, vol. 15(18), pages 1-18, September.
    20. Bendig, David & Schulz, Colin & Theis, Lukas & Raff, Stefan, 2023. "Digital orientation and environmental performance in times of technological change," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carmen Cagiza & Massochi Faustino & Ilidio Cagiza & Aristoteles Cajiza, 2025. "AI-Powered Advisory Platforms for Sustainable Marketing Innovation in SMEs: Empirical Evidence from Underserved U.S. Markets," Sustainability, MDPI, vol. 17(20), pages 1-27, October.
    2. Amir, Muhammad Sikander & Ali, Amjad & Audi, Marc, 2025. "Artificial Intelligence Investment and Firm Profitability: Evidence from Pakistan’s Financial and Audit Sectors," MPRA Paper 127314, University Library of Munich, Germany.
    3. Eman Ismail & Mohamed Hamed Elsharnouby & Hossam Ahmed Hanafy, 2025. "RAISA adoption and organizational performance in Egypt’s travel and hospitality sector: an integrated TOE–BOE perspective," Future Business Journal, Springer, vol. 11(1), pages 1-18, December.
    4. Khalid Jamil & Wen Zhang & Aliya Anwar & Sohaib Mustafa, 2025. "Driving SME Sustainability via the Influence of Green Capital, HRM, and Leadership," Sustainability, MDPI, vol. 17(13), pages 1-26, July.
    5. Ali Nawaz Khan & Huang Honglei & Mohsin Ali Soomro, 2026. "Dynamic Capabilities for Circular Economy: Leadership, Eco‐Innovation, and the Mediating Role of Digital Transformation," Business Strategy and the Environment, Wiley Blackwell, vol. 35(3), pages 4484-4494, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Al-khatib, Ayman wael & AL-Shboul, Moh'd Anwer & Khattab, Mais, 2024. "How can generative artificial intelligence improve digital supply chain performance in manufacturing firms? Analyzing the mediating role of innovation ambidexterity using hybrid analysis through CB-SEM and PLS-SEM," Technology in Society, Elsevier, vol. 78(C).
    2. Andrés Fernández-Miguel & Maria Pia Riccardi & Valerio Veglio & Fernando E. García-Muiña & Alfonso P. Fernández del Hoyo & Davide Settembre-Blundo, 2022. "Disruption in Resource-Intensive Supply Chains: Reshoring and Nearshoring as Strategies to Enable Them to Become More Resilient and Sustainable," Sustainability, MDPI, vol. 14(17), pages 1-13, August.
    3. Xi, Mengjie & Liu, Yang & Fang, Wei & Feng, Taiwen, 2024. "Intelligent manufacturing for strengthening operational resilience during the COVID-19 pandemic: A dynamic capability theory perspective," International Journal of Production Economics, Elsevier, vol. 267(C).
    4. Kumar, Mukesh & Tsolakis, Naoum & Agarwal, Anshul & Srai, Jagjit Singh, 2020. "Developing distributed manufacturing strategies from the perspective of a product-process matrix," International Journal of Production Economics, Elsevier, vol. 219(C), pages 1-17.
    5. Husseini Sadick Alhaji & Gáti Mirkó, 2025. "The influence of dynamic capabilities on firm performance: Examining the moderating role of government support in Ghanaian SMEs," Management & Marketing, Sciendo, vol. 20(4), pages 156-172.
    6. Christian Homburg & Moritz Tischer, 2023. "Customer journey management capability in business-to-business markets: Its bright and dark sides and overall impact on firm performance," Journal of the Academy of Marketing Science, Springer, vol. 51(5), pages 1046-1074, September.
    7. Sara Alonso-Muñoz & Rocío González-Sánchez & Cristina Siligardi & Fernando E. García-Muiña, 2021. "New Circular Networks in Resilient Supply Chains: An External Capital Perspective," Sustainability, MDPI, vol. 13(11), pages 1-18, May.
    8. Maseda, Amaia & Iturralde, Txomin & Arzubiaga, Unai, 2025. "Unpacking the role of entrepreneurial orientation in the digital transformation of family SMEs: The importance of leadership structure and generational involvement," Technological Forecasting and Social Change, Elsevier, vol. 219(C).
    9. Yunis, Manal & Tarhini, Abbas & Kassar, Abdulnasser, 2018. "The role of ICT and innovation in enhancing organizational performance: The catalysing effect of corporate entrepreneurship," Journal of Business Research, Elsevier, vol. 88(C), pages 344-356.
    10. Mohammad Fakhrul Islam & Mohammad Imran Hossain & Md. Rashed & Md. Naeemur Rahman & Mohammad Imtiaz Hossain & Md. Faisal-E-Alam, 2025. "Strategizing for Sustainability: Examining the Dynamic Interplay of the Circular Economy, Green Technology Innovation, and Green Performance," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 26(4), pages 935-961, December.
    11. Al-Omoush, Khaled Saleh & Garcia-Monleon, Fernando & Mas Iglesias, José Manuel, 2024. "Exploring the interaction between big data analytics, frugal innovation, and competitive agility: The mediating role of organizational learning," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    12. Sok, Phyra & O’Cass, Aron & Sok, Keo Mony, 2013. "Achieving superior SME performance: Overarching role of marketing, innovation, and learning capabilities," Australasian marketing journal, Elsevier, vol. 21(3), pages 161-167.
    13. Freixanet, Joan & Federo, Ryan, 2025. "A configurational analysis of internationalization, absorptive capacity, and resource-based factors explaining firms’ innovation performance," International Business Review, Elsevier, vol. 34(4).
    14. Joaquín Camps & Antonio Majocchi, 2010. "Learning Atmosphere and Ethical Behavior, Does It Make Sense?," Journal of Business Ethics, Springer, vol. 94(1), pages 129-147, June.
    15. Manis, K.T. & Madhavaram, Sreedhar, 2023. "AI-Enabled marketing capabilities and the hierarchy of capabilities: Conceptualization, proposition development, and research avenues," Journal of Business Research, Elsevier, vol. 157(C).
    16. Alba Barrero Caballero, 2023. "Comportamiento de consumo de los millennials y estrategias comunicativas en Facebook e Instagram del sector de la moda 2016-2019," DOCFRADIS Working Papers 2303, Catedra Fundación Ramón Areces de Distribución Comercial, revised Apr 2023.
    17. Ayman wael AL‐khatib & Thurasamy Ramayah, 2025. "Artificial intelligence‐based dynamic capabilities and circular supply chain: Analyzing the potential indirect effect of frugal innovation in retailing firms," Business Strategy and the Environment, Wiley Blackwell, vol. 34(1), pages 830-848, January.
    18. Elena Cefis & Stefania Scrofani & Matteo Tubiana, 2025. "Innovation policies and firms’ productivity: the Italian Industry 4.0 Plan for digital transformation," The Journal of Technology Transfer, Springer, vol. 50(5), pages 2443-2475, October.
    19. Alessandra Neri & Marta Negri & Enrico Cagno & Vikas Kumar & Jose Arturo Garza‐Reyes, 2023. "What digital‐enabled dynamic capabilities support the circular economy? A multiple case study approach," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 5083-5101, November.
    20. Jekaterina Novicka & Tatjana Volkova, 2025. "Bridging Big Data Analytics Capability with Sustainability Business Performance: A Literature Review," Sustainability, MDPI, vol. 17(6), pages 1-21, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:8:p:3599-:d:1636022. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.