Entrepreneurial Orientation and Startup Business Sustainability: The Mediating Role of the Quality of Artificial Intelligence Utilization

Abstract

The Indonesian startup ecosystem has experienced growing funding pressures and rising demands for operational efficiency, making business sustainability an increasingly important priority. Therefore, this study aims to examine the effect of entrepreneurial orientation on business sustainability, with the quality of Artificial Intelligence (AI) utilization serving as a mediator among startup employees in Greater Jakarta and Bandung. Using a causal quantitative design, the study surveyed 107 respondents selected through purposive sampling. Data were analyzed using Partial Least Squares Structural Equation Modeling in SmartPLS 4, and the obtained results showed that entrepreneurial orientation positively affected both business sustainability (β=0.380; p<0.001) and the quality of AI utilization (β=0.603; p<0.001). The quality of AI utilization was also observed to positively affect business sustainability (β=0.376; p=0.001). Accordingly, the obtained indirect effect of 0.227 (p=0.001) confirms partial mediation, with a VAF of 37.4%. These findings expand the Resource-Based View (RBV) by positioning entrepreneurial orientation as a strategic capability and the quality of AI utilization as a technological-operational capability that transforms the orientation into business efficiency, productivity, adaptability, and resilience. Practically, startups need to integrate an entrepreneurial culture, AI literacy, data governance, infrastructure support, and AI impact evaluation into respective business processes.