Digital Intelligence and Sustainable SME Performance: The Mediating Role of Green Innovation in Indonesia
DOI:
https://doi.org/10.17509/image.2026.242Keywords:
Digital Intelligence, Green Innovation, Sustainable SME Performance, Sustainability, SMEsAbstract
This study examines how digital intelligence contributes to sustainable performance among small and medium enterprises (SMEs) and whether green innovation translates digital capability into sustainability outcomes. The topic is important because SMEs increasingly adopt digital technologies while facing pressure to improve resource efficiency, environmental responsibility, and long-term competitiveness. Despite increasing digitalization, it remains unclear how digital intelligence improves sustainable SME performance and whether green innovation mediates this relationship, particularly in emerging economies. This study integrates dynamic capability theory and the natural resource-based view to explain the digital intelligence–green innovation–sustainable performance mechanism in West Java SMEs, which remains insufficiently examined. A quantitative cross-sectional survey was conducted using data from 200 SMEs in West Java, Indonesia, and the proposed relationships were tested using Partial Least Squares Structural Equation Modelling (PLS-SEM). Digital intelligence positively influences green innovation and sustainable SME performance, while green innovation improves sustainable performance and partially mediates the relationship. Digital capability generates stronger sustainability outcomes when SMEs convert digital knowledge into environmentally oriented innovation. Managers should therefore align digital investment with green product, process, and managerial improvements.
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Copyright (c) 2026 Okky Rizkia Yustian, Chyntia Ika Ratnapuri, Desi Indrawati (Author)
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