Linking artificial intelligence adoption to sustainable development in Vietnamese SMEs: The mediating roles of digital transformation, operational effectiveness, and cost reduction

LAN NGUYEN THI HONG

Thanh Dong University

HA THI THU NGUYEN

FPT University, Greenwich Viet Nam; Email: [email protected]

THAO TRAN VIET, THUY DUONG NGUYEN THANH

Thuongmai University

Abstract

This study develops and empirically tests a conceptual model linking artificial intelligence adoption to firm performance and sustainable development through three mediating mechanisms: digital transformation, operational process effectiveness, and cost reduction. Data were collected from 212 participants working in small and medium-sized enterprises (SMEs) and tested using Python with the SEMOPY library. The findings highlight the important role of artificial intelligence in driving the digital transformation of Vietnamese SMEs. This study also highlights artificial intelligence’s transformative potential as a strategic lever for digital transformation, operational excellence, and sustainable development grounded not in abstract idealism but in tangible performance improvements and adaptive organizational capability.

Keywords: Artificial intelligence, small and medium-sized enterprises, digital transformation, operational effectiveness, cost reduction, sustainable development

(This article was published in the Vietnam Economic&Financial Review, Vol 2, Issue 3, June 2026)

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