Artificial Intelligence Adoption, Competitive Pressure, and Their Influence on Business Sustainability: Empirical Evidence from Firms in Emerging Markets
DOI:
https://doi.org/10.52432/justbest.5.2.69-79Keywords:
Artificial Intelligence Adoption, Competitive Pressure, Business Sustainability, Emerging Markets, Digital TransformationAbstract
The increasing adoption of Artificial Intelligence (AI) and intensifying competitive pressure have reshaped business environments, particularly in emerging markets characterized by uncertainty and resource constraints. However, empirical evidence on the combined effects of AI adoption and competitive pressure on business sustainability remains limited. This study examines the impact of Artificial Intelligence Adoption and Competitive Pressure on Business Sustainability among firms operating in Kuala Lumpur, Malaysia. A quantitative approach was employed using survey data collected from 137 firms, which were analyzed using multiple linear regression. The results indicate that Artificial Intelligence Adoption has a positive and significant effect on Business Sustainability (? = 0.451, p < 0.001). Competitive Pressure also demonstrates a positive and significant influence on Business Sustainability (? = 0.331, p < 0.001). The regression model explains 53.6% of the variance in Business Sustainability, indicating strong explanatory power. These findings suggest that firms adopting AI technologies and effectively responding to competitive pressure are better positioned to achieve sustainable business outcomes. This study provides empirical evidence from an emerging market context and offers valuable insights for managers and policymakers in the digital transformation era.
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