“AI and Digital Technologies as Enablers of Environmental, Social, and Economic Sustainability in MSMEs and Startups: An Empirical Study from Emerging Economies”

Authors

Dr. Srikantamurthy M. R.

Assistant Professor, Dayanandasagar College of Arts, Science and Commerce, Bangalore, Karnataka (India)

Dr. V Chandrasekhar Rao

HOD & Professor, Dept of MBA, Potti Sriramulu Chalavadi Mallikarjuna Rao College of Engineering & Technology, Vijayawada (India)

Prof. Muralidhara K. S.

Assistant Professor, Dayanandasagar College of Arts, Science and Commerce, Bangalore, KarnatakaAssistant Professor, Dayanandasagar College of Arts, Science and Commerce, Bangalore, Karnataka (India)

Article Information

DOI: 10.47772/IJRISS.2026.100600096

Subject Category: Management

Volume/Issue: 10/6 | Page No: 1298-1307

Publication Timeline

Submitted: 2026-05-25

Accepted: 2026-05-30

Published: 2026-06-18

Abstract

MSME popularly known as Micro, Small, and Medium Enterprises along with startup play an important role in taking ahead inclusive economic and its growth in emerging economics, but also face significant challenges in economic, social and environmental sustainability. The quick adoption of AI (Artificial Intelligence) and relative digital technology has offered new opportunities for those firms which can overcome resource restrictions and also enhances itself in sustainable performance. This research paper with empirical study examines how Artificial Intelligence driven tools along with digital technologies such as cloud computation, data analytics, digital platforms and digital automation as an enabler of sustainability across the three bottom lines in the field of MSMEs and startups which gets operated in emerging economics. This research paper is based on primary data collected from MSME owners, founder of start up companies, and senior managers this paper also employees structural equation modelling to analyse the association between digital technology adoption along with sustainability outcomes. The research findings literally reveals that artificial intelligence and digital technologies improve significantly in the field of environmental sustainability through resource optimization and as well as waste reduction along with social sustainability with the help of enhanced workforce presence, development of skills and stakeholders getting engaged and finally economic sustainability through market expansion productivity gains and cost efficiency. This research paper study further through identifying organizational defines through digital capabilities as a key intermediate factor which influences sustainability outcomes. The study has been done through empirical evidence from emerging economics, where the research contributes to the growing literature on digital sustainability also offers practical insights for entrepreneurs, policymakers and practitioners who seek to leverage AI- driven transformation towards sustainable development in the field of MSME and startups.

Keywords

Digital technologies, policymakers, MSMEs, sustainable development

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