The Impact of Artificial Intelligence, Big Data Analytics, and the Internet of Things on Sustainable Business Practices Among Marketplace-Using MSMes in Indonesia

Abstract

Objective: This study aims to analyze the impact of the use of Artificial Intelligence (AI), Big Data Analytics (BDA), and the Internet of Things (IoT) on sustainable business practices among MSMEs using marketplaces in Indonesia.

Research Design & Methods: This study employs a quantitative approach using a cross-sectional survey design. Data were collected from 285 MSMEs owners or managers who actively use marketplaces such as Shopee, Tokopedia, Lazada, and Blibli. Data analysis was conducted using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method with the assistance of SmartPLS 4.0 software.

Findings: The results indicate that all hypotheses were accepted. Artificial Intelligence has a positive and significant effect on sustainable business practices (β = 0.341; p < 0.001), followed by Big Data Analytics (β = 0.298; p < 0.001) and the Internet of Things (β = 0.219; p < 0.001). The coefficient of determination value of R² = 0.674 indicates that these three digital technologies account for 67.4% of the variation in sustainable business practices among Indonesian MSMEs using marketplaces. Among the three variables, Artificial Intelligence is the factor with the most dominant influence.

Contributions: This study makes an empirical contribution to the literature on digital transformation and MSMEs sustainability by demonstrating that the simultaneous use of AI, BDA, and IoT can enhance sustainable business practices from economic, social, and environmental perspectives. The study’s findings also offer practical implications for MSMEs operators, marketplace providers, and policymakers in promoting the adoption of digital technologies to support business sustainability.

Novelty: This study integrates Artificial Intelligence, Big Data Analytics, and the Internet of Things into a single conceptual model to explain sustainable business practices among marketplace-using MSMEs in Indonesia. Unlike previous studies, which generally examined each technology separately or focused on large corporations, this study provides empirical evidence within the context of SMEs in a developing country operating within a digital marketplace ecosystem.