Navigating Change Management in the Green Digital Age: Leveraging AI to Enhance Sustainable Human Resource Performance in Small and Medium Enterprises (SMEs)

Abstract

This study investigates the critical processes underpinning change management for the integration of Artificial Intelligence (AI) into Green Human Resource Management (GHRM) initiatives within Micro, Small, and Medium Enterprises (MSMEs) across five emerging Asian economies: Indonesia, Malaysia, Thailand, Vietnam, and the Philippines. Adopting a multi-site qualitative design involving 25 MSMEs through in-depth interviews, focus group discussions, and participatory observations, the research conceptualizes a five-phase change management model and identifies ten critical success factors. Among these, leadership commitment, digital competency, environmental awareness, and affordable technology access emerge as primary enablers of successful AI-driven GHRM adoption. Empirical findings demonstrate that AI implementation significantly enhances human resource process efficiencies (75% of MSMEs) and fosters environmentally responsible employee behaviors (80%). By synthesizing theoretical perspectives from the Socio-Technical Systems (STS) theory, Diffusion of Innovation (DOI) theory, and the Ability-Motivation-Opportunity (AMO) framework, this study provides a comprehensive lens for understanding the complexity of AI adoption in the context of sustainable HRM. The research makes a dual contribution: theoretically, by bridging gaps between digital transformation, HRM, and sustainability literature; and practically, by offering a contextually relevant change management framework tailored for MSMEs operating in developing countries. These findings highlight the transformative potential of AI in advancing Sustainable Development Goals (SDGs) through strategic human resource initiatives.