Survival Strategies and SMEs Sustainability in Lagos State: The Moderating Role of Artificial Intelligence Adoption

Small and medium-sized enterprises (SMEs) in emerging economies operate in a volatile business environment which threatens their long-term sustainability. In view of this development, this study examines the nexus between survival strategies and sustainability of food and beverage manufacturing SMEs in Lagos State, Nigeria, with special reference on the moderating role of artificial intelligence (AI) adoption. Using a descriptive research design while a cross-sectional survey approach was used to administer the study’ survey to the participants of the study. With the aid of a proportionate stratified sampling technique, 295 participants were selected from ten notable government registered food and beverage manufacturing SMEs. Data obtained were analyzed via partial least square structural equation modeling (SMART PLS SEM). The outcome of the study shows that strategic networking, innovation, diversification and cost control strategy improved SMEs sustainability to a great extent. AI adoption positively moderates the relationship between survival strategies and SMEs sustainability. The study concluded that alignment of AI tools with survival strategies improves SMEs sustainability. Therefore, AI plays a vital role in strengthening the effectiveness of survival strategies towards achieving superior sustainability outcomes. This study makes significant contribution to extant literature in the field of SME and technology management by empirically proven that the AI is not just a technological tool but a strategic resource that strengthens the efficacy of survival strategies. To this effect, the study recommended that, government should provide a supporting environment for AI adoption such that creates room for digital infrastructural development, engenders regulatory support for SMEs and encourages public private partnership that can make AI infrastructures easily available SMEs