Leveraging artificial intelligence for business sustainability through mediating effect of marketing innovation strategies and environmental management

Abstract

The objective of this study is to examine how artificial intelligence (AI) enabled digital strategy causes to improve business sustainability through marketing innovation and environmental sustainability in United Arab Emirates (UAE). Data collection and analysis used structured questionnaire to gather data from 278 owners and managers of tourism-based micro, small, and medium enterprises (MSMEs). Data was collected using both face-to-face and internet methods that allowed for a large sample pool from many different regions of country. Data was analyzed using Smart PLS structural equation modeling. Results showed that AI enabled digitalization strategies support overall business sustainability, specifically via innovation strategy, whereas environmental management did not provide any significant mediation effects individually. However, both marketing innovation strategies and environmental management contributed independently to the positive outcomes. While digitalization can significantly support sustainable business outcomes, barriers to business sustainability are limited or reduce the positive effects of digitalization during times of high constraints. Finally, the findings of this research demonstrate the necessity of integrating digital tools into innovative practices to obtain long term success for all three factors of sustainability: economically, environmentally, and socially in UAE. In addition, this study contributed to Sustainable Development Goal (SDG) 12 and Sustainable Development Goal (SDG) 13.