Transforming SMEs through AI-Driven Digital Ecosystems to Improve Sustainable Performance: The Roles of Organizational Resilience, Sustainable Value Co-Creation, and Digital Maturity
Abstract
This research investigates the relationship between artificial intelligence-integrated digital ecosystem, digital maturity, organisational resilience, and the mechanism of sustainable value co-creation and performance results in small and medium-sized firms in East Java, Indonesia. It aims to elucidate how these five factors collectively foster long-term resilience and sustainability in increasingly information-dense business environments.The Quantitative Method was applied with the SEM-PLS approach in the SmartPLS 3.2 program. The survey included 151 SMEs with different demographic characteristics. The model was evaluated for predictive relevance (Q2), common method bias, bootstrapped path coefficients, confirmatory factor analysis, correlation analysis, multicollinearity, and construct reliability. Data were obtained between December 2025 and April 2026.The results reveal that AI-enabled digital ecosystems have a remarkable and favourable effect on organisational resilience and sustainable value co-creation, hence improving sustainable performance. Digital maturity serves as an important enabler and mediator, further enhancing the benefits of these AI-enabled solutions. Moreover, sustainable value co-creation is found as the main predictor of sustainable performance, and the link between resilience and co-creation is reciprocal, showing a reinforcing dynamic.This study contributes to the current literature by extending the conceptualisation of SME success to include economic, social and environmental factors. Moreover, it provides a solid basis for understanding the role of AI ecosystems and digital maturity in supporting resilience and sustainability, allowing resource-constrained SMEs to retain their competitive advantage, while also supporting international sustainability agendas such as the Sustainable Development Goals and Environmental, Social, and Governance standards.