Human Capital and Entrepreneurial Antecedents of Sustainable SME Performance: The Mediating Role of AI Adoption and the Moderating Role of Government Support

Authors

DOI:

https://doi.org/10.46977/amt.2026.v07i02.003

Keywords:

AI Adoption, Entrepreneurial Orientation, Entrepreneurial Self-Efficacy, Government Support, Human Capital, Mediation, SMEs, Sustainable Performance

Abstract

What causes small and medium-sized enterprises (SMEs) with similar resources to have such a variance in success in harnessing the power of artificial intelligence (AI) for long-term gain? This article presents some initial ideas to answer this question. Among the causes, this work identifies human capital, which denotes the firm’s capabilities, and entrepreneurial precursors, which include self-efficacy and orientation and are the motivational and dispositional aspects of the decision maker and the firm’s posture. This article's central claim is that these causes do not directly correlate with long-term gain. AI adoption is the mediating mechanism through which the firm’s capabilities and the decision maker’s disposition are converted into a digital capability, and the extent of this change is determined by the level of government support. The framework is built on the ability-motivation-opportunity synthesis and the microfoundations of dynamic capabilities. It yields seven propositions and an integrated model. The contribution is to reposition AI adoption from a dependent variable, as the adoption literature usually treats it, to a mediating mechanism; to derive the moderating role of government support from a multiplicative interaction logic rather than asserting a direct effect; and to bring the capability-based and agency-based accounts of small firm digital transformation into a single explanatory structure. The article closes with an agenda for empirical testing.

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Published

2026-10-10

How to Cite

Yadewani, D., Kulal, S. M. ., & Wijaya, R. . (2026). Human Capital and Entrepreneurial Antecedents of Sustainable SME Performance: The Mediating Role of AI Adoption and the Moderating Role of Government Support. Advancement in Management and Technology (AMT) , 7(2), 39-55. https://doi.org/10.46977/amt.2026.v07i02.003

Issue

Vol. 7 No. 2 (2026): Advancement in Management and Technology (AMT)

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Article

Copyright (c) 2026 Advancement in Management and Technology (AMT)

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