Integrating artificial intelligence and strategic agility for enhancing sustainable innovation in post-COVID SMEs

Abstract

This study examines how Artificial Intelligence Capabilities (AI), Strategic Agility (SA), and Organizational Learning (OL) influence Sustainable Innovation (SI) among manufacturing SMEs in China after the mediating role of Knowledge Management (KM) and the moderating role of Top Management Support (TMS). 300 managers from SME groups were subjected to a structured questionnaire, and the data were processed by SmartPLS 4. It has turned out that AI, SA, and OL exert significant positive effects on KM, as the latter strongly predicts SI. KM acts as a mediator between AI, SA, OL, and SI; TMS positively moderates the relationships between AI and SI. The findings complement the dynamic capability theory and provide practical recommendations on how internal capabilities and support from the leadership can be used for sustainability-oriented innovation in SMEs.