MSMEs and the Role of Technology in Achieving Business Sustainability

Authors

  • Frans Gidion Sinuhaji Universitas Mahkota Tricom Unggul
  • Hendra Jonathan Sibarani Universitas Mahkota Tricom Unggul
  • Victor Maruli Pakpahan Universitas Mahkota Tricom Unggul

DOI:

https://doi.org/10.59934/jaiea.v4i1.724

Keywords:

Artificial Intelligence; Business Sustainability; Financial Technology; MSMEs; Structural Equation Modeling

Abstract

This study investigates the impact of Artificial Intelligence (AI) and Financial Technology (FinTech) on business sustainability among Micro, Small, and Medium Enterprises (MSMEs) in Medan City. Employing an associative research approach, the study utilizes quantitative data derived from both primary and secondary sources. The analysis methods include descriptive statistical analysis and Structural Equation Modeling (SEM). The study's population consists of 100 MSMEs in Medan City, selected through accidental sampling. The findings demonstrate that the adoption of AI and FinTech positively and significantly influences business sustainability. The integration of these technologies enhances operational efficiency, supports faster growth, and ultimately strengthens the sustainability of MSMEs. This research highlights the critical role of digital innovation in driving the development and resilience of small businesses, emphasizing the need for broader adoption of AI and FinTech solutions in the MSME sector to foster long-term growth and competitiveness.

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References

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Published

2024-10-15

How to Cite

Sinuhaji, F. G., Sibarani, H. J., & Pakpahan, V. M. (2024). MSMEs and the Role of Technology in Achieving Business Sustainability. Journal of Artificial Intelligence and Engineering Applications (JAIEA), 4(1), 588–593. https://doi.org/10.59934/jaiea.v4i1.724