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Purpose

With the rapid development of technology in the 21st century, an ever-growing number of organisations are adopting digitalised technologies. The global economy connected with digitalisation is moving towards sustainable development. Individual firms adopt innovative technological strategies to consolidate their position in the competitive market. The study aimed to examine the management perception of the impact of E-commerce adoption (EC) on business performance (BP) – the moderating role of using artificial intelligence (AI).

Design/methodology/approach

A quantitative study using the deductive approach and the data collected from senior managers of the small and medium-sized enterprises (SMEs) in Sri Lanka, and 389 samples were collected using a simple random sampling method. EC, BP and AI were named as the independent, dependent and moderating variables in the model. Porters' generic strategies and resource-based views (RBVs) were applied as the foundation of the study.

Findings

The independent and moderating variables significantly influenced the BP. Managers' age, gender, education level and job position affect their perception.

Originality/value

The global economy is moving towards sustainable development using digitalisation. The firms should blend their strategies with digitalised platforms to survive in the competitive market.

Peer review

The peer review history for this article is available at the following link: https://publons.com/publon/10.1108/IJSE-12-2021-0752

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