ENTERPRISE AI ANALYSIS

Detailed Key Findings

• Digital Financial Literacy (DFL) significantly impacts Quality of Financial Reporting (QFR) for female artisans and entrepreneurs. Support: H1: DFL positively supports QFR (p=0.036). [35, 41, 42, 43, 44]
• Entrepreneurial Orientation (EO) has a positive and significant impact on QFR in female entrepreneurs. Support: H2: EO positively and significantly affects QFR (p=0.027). [29, 45, 46, 47, 48, 49]
• AI Accounting Adoption Tools (AAAT) significantly and positively affect QFR. Support: H3: AAAT strongly supports QFR (p=0.007). [50, 51, 52, 53, 54, 80, 86, 87]
• AAAT is positively and significantly associated with Digital Technology (DT). Support: H4: AAAT directly supports DT (p=0.000). [88]
• Quality of Financial Reporting (QFR) is positively affected by Digital Technology (DT). Support: H5: DT positively affects QFR (p=0.000). [55, 56, 57]
• DT mediates the impact between AAAT and QFR in the handicraft industry. Support: H5a: DT partially mediates between AAAT and QFR (VAF = 36.9%). [82, 85]
• Artificial Intelligence (AI) has a strong and positive impact on QFR. Support: H6: AI positively and significantly affects QFR (p=0.009). [57, 58, 59, 60, 61, 77, 89]
• Social media is positively and significantly related to QFR. Support: H7: SM positively affects QFR (p=0.001). [57, 58, 62, 63, 65, 66, 67, 68, 90]
• ESG Audit (ESGA) moderates the quality of financial reporting through DT. Support: H8: ESGA positively moderates the association between QFR and DT (p=0.049). [32, 33, 35, 42, 53, 58, 69, 71, 91, 92]
• The handicraft industry's traditional production and marketing trends necessitate digital transformation for competitiveness. Support: The industry is unorganised, largely female-run, and traditional. Digital technologies (SM, AI, DT, DFL) are crucial for boosting its competitiveness against machine-made products. [3]
• Comparison of traditional vs. AI-driven accounting for female artisans. Support: AI tools improve accuracy, timeliness, and transparency. [58, 59, 60, 61, 62, 63, 64]
• The study uses Dynamic Capability Theory (DCT), Stakeholder Theory (ST), and Gender-Transformative Approach (GTA) as theoretical foundations. Support: DCT explains how AI, DT, SM, DFL enhance QFR. ST highlights the importance of ESG and QFR for stakeholders. GTA emphasizes gender inclusivity and empowerment in digital transformation for female artisans.

Managerial & Policy Implications

The findings highlight the need for organizations to address traditional financial reporting limitations in small industries, especially among female artisans. Policymakers should implement technologies (AI, SM, DT) to enhance QFR and support gender-inclusive digital capacity building. Family firms need to foster a culture of relational embeddedness for AI adoption to curb technophobia. Upskilling artisans in digital financial literacy and building technological capital are crucial. Deploying AI-based algorithms, social media, and DT, with ESGA, can harness business efficiency.

Environmental & SDG Impact

Adopting AI accounting tools and digital platforms significantly reduces dependence on paper-based records, minimizing paper waste and energy consumption, leading to a smaller carbon footprint. Integrating Environmental, Social, and Governance (ESG) Audits raises awareness of environmental impacts in production and supply chains, promoting natural resource management and green compliance. Social media enables environmental advocacy, promoting eco-friendly practices (e.g., biodegradable materials, natural dyes) and increasing demand for sustainable products. Empowering women through digital tools and AI supports green business growth, identifying resource-saving opportunities, and improving product life cycle management, contributing to SDGs 5, 1, and 12.