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Generative Artificial Intelligence and Sustainable Entrepreneurship: Redefining Business Leadership, Marketing Excellence, and Governance Practices

Year: 2026
Type: article
Abstract: The advent of generative AI is having a profound impact on entrepreneurial strategy, organizational innovation, leadership, and long-term competitive performance. This study explored the impact of the adoption of artificial intelligence on the process of entrepreneurial transformation toward sustainability in terms of leadership support, business model innovation, sustainable competitive advantage, institutional support, cost effectiveness, and firm performance. The study adopted a quantitative secondary-data design and had a managerial dataset of 325 observations. Partial Least Squares Structural Equation Modelling was utilised to assess the measurement reliability, construct validity, structural linkages, explanatory power, and indirect effects. It was discovered that the measurement model had acceptable Average Variance and Cronbach's alpha values over 0.80. extracted values greater than 0.65, demonstrating convergent validity and adequate dependability. The structural results indicated that the use of AI had significant impacts on business model innovation, sustainable competitive advantage, and firm performance. The top direct result of business model innovation was that it created a firm's strongest direct link to its performance, followed by sustainable competitive advantage. AI adoption was strongly encouraged by leadership support, and government support had positive impacts on AI adoption, leadership support and cost effectiveness. Important indirect effects also suggested that AI has impacts on organizational performance via innovation and sustainable competitive capability. The overall results indicate that the strategic contribution of AI is highly reliant on leadership, innovation, institutional support, and responsible organizational practices.
Open Access status: diamond
OpenAlex ID: W7222203155
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