Artificial Intelligence Capabilities, Sustainable Innovation and SMEs’ Resilience: A Serial-Parallel Mediation Model of Dynamic and Digital Platform Capabilities

Abstract

The development of digital capability for resilience remains a major challenge for small and medium-sized enterprises (SMEs). Drawing on dynamic capability theory (DCT), this research develops and tests a model linking artificial intelligence capabilities (AIC), digital platform capabilities (DPC), sustainable innovation (SI) and SME resilience (R). The data were collected from 321 Saudi SMEs and analysed using SmartPLS for structural equation modelling. Findings confirm AIC’s mediating effect on both SI and R. Additionally, the results support the conclusion that the DPC developed through AI mediates only the relationship between AIC and SI. Moreover, the sequential parallel mediating model confirms the complementary roles of DPC and dynamic capabilities in linking AIC to SI and R. The validated model offers a practical framework for operations managers seeking to enhance resilience and sustainability and to extend this effect to the corresponding mechanisms linking AIC, SI, and R. In fact, this study clarifies a digital capability pathway in SMEs. In terms of managerial implications, it highlights the importance of AI-driven capabilities as a strategic priority. However, the use of cross-sectional data and a sectoral scope can limit the research contributions and suggest new directions for future longitudinal and cross-country research.