Generative AI and Entrepreneurial Psychological Capital for Sustainable SME Performance: The Roles of Hope, Resilience, and Adaptive Behavior in Emerging Economies according to SDG 3 (Good Health and Well-being)

This study investigates the causal relationships among Institutional and Environmental Context (IEC), Support from Government and Related Organizations (SGRO), Digital Capability and Learning Skills of SMEs (DCLS), and Adaptive and Quality-driven Entrepreneurial Outcomes (AQE) in emerging-economy SMEs according to SDG 3 (Good health and well-being). Drawing on dynamic capability and entrepreneurial psychological capital perspectives, it examines how institutional conditions and organizational support enable SMEs to use generative AI to strengthen digital capability, learning, hope, resilience, and adaptive behavior for sustainable performance. Data were collected from 450 SME owners and managers using a structured questionnaire. Confirmatory Factor Analysis (CFA) validated the measurement model, while Structural Equation Modeling (SEM) tested the hypothesized relationships. The results showed that IEC significantly affects DCLS (β = 0.910, p < 0.001), and SGRO positively influences DCLS (β = 0.072, p = 0.018). DCLS significantly affects AQE (β = 0.645, p < 0.001), indicating that generative AI-enabled capability and learning support hopeful goal pursuit, resilience, adaptive behavior, quality improvement, and long-term competitiveness. SGRO also has a direct positive effect on AQE (β = 0.498, p < 0.001), whereas IEC has no significant direct effect on AQE (β = −0.205, p = 0.189). Mediation analysis confirmed that DCLS significantly mediates the relationships between IEC and AQE (β = 0.587, p < 0.001) and between SGRO and AQE (β = 0.046, p < 0.001). The findings identify DCLS as a key mechanism linking external support, generative AI adoption, entrepreneurial psychological capital, and sustainable SME performance.