The Implications of Artificial Intelligence for Small and Medium-Sized Enterprises’ Sustainable Development in the Areas of Blockchain Technology, Supply Chain Resilience, and Closed-Loop Supply Chains

Abstract

In today’s fast-paced business settings, the metaverse as a shared marketplace has gained popularity and is helping businesses to develop crucial business strategies in their pursuit of sustainable performance. However, a lack of understanding and knowledge about the effectiveness of the metaverse and its related technologies creates a barrier. Therefore, the current study fills this gap and uses organizational information-processing theory to develop the theoretical framework to examine metaverse-related technologies (artificial intelligence and blockchain technology—BCT) and their direct and indirect effects on sustainable business performance, which no other study has examined. Using purposive sampling, the sample data from 326 SMEs were gathered and analyzed using a partial least square structural equation modeling (PLS-SEM). This study’s findings revealed that AI capabilities are vital for information gathering, analyzing, and decision-making in the metaverse context. BCT facilitates ensuring a transparent, visible, traceable, and immutable supply chain, which helps make it more resilient and improves the closed-loop supply chain (CLSC) system with positive technological advancements and significant effects on increasing sustainable business performance (SBP). This study’s findings help organizations understand the potential benefits of AI-enabled SMEs’ presence in the metaverse. The current investigation provides a strategy for managers to gain a competitive advantage, make the supply chain more robust, and enhance overall business performance.