Artificial Intelligence Adoption and Business Resilience of MSMEs in Digital Platform Economy: The Mediating Role of Digital Business Model Innovation

Abstract

The development of digital platform economy ecosystems has driven MSMEs to adopt artificial intelligence (AI) as a business resilience strategy. However, the mechanisms linking AI adoption to MSME business resilience through digital business model innovation remain insufficiently understood in the Indonesian context. Purpose: This study aims to analyze the effect of artificial intelligence adoption on MSME business resilience and to examine the mediating role of digital business model innovation in this relationship. Methods: A quantitative approach with a cross-sectional survey design was employed. The sample consisted of 320 MSME operators in Indonesia who utilized at least one digital platform in their business operations. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. Results: AI adoption has a significant positive effect on MSME business resilience (β=0.412; p<0.001) and on digital business model innovation (β=0.538; p<0.001). Digital business model innovation partially mediates the effect of AI adoption on MSME business resilience (indirect effect β=0.231; p<0.001). Conclusion: Digital business model innovation is proven to partially mediate the relationship between AI adoption and MSME business resilience, indicating that AI adoption accompanied by business model reconfiguration yields more optimal business resilience.