Revealing the Secrets of Metaverse Technology Adoption for Sustainable Performance via Dual-Stage SEM-ANN Analysis

Abstract

The growing ubiquity of the metaverse among small and medium-sized enterprises (SMEs) offers a game-changing chance for creative business plans and improved communication. This adoption reduces the consumption of physical resources and promotes an environmentally responsible business model in besides increasing operational efficiency. In accordance with the Sustainable Development Goals (SDGs) of the UNDP, our study attempts to clarify how the metaverse might improve the sustainable performance of SMEs. We developed a comprehensive study model based on the diffusion of innovation (DOI) and technical organizational and environmental (TOE) paradigms. For data analysis a hybrid approach merging partial least squares-structural equation modeling (PLS-SEM) and artificial neural network (ANN) was implemented. The study highlights the crucial roles of relative advantage, value alignment, compatibility, and top management after analyzing data from 369 respondents across Chinese SMEs that was collected both physically and online. The understanding of decision-makers becomes evident as a crucial element impacting the adoption of metaverse and ensuing sustainable (social, economic, and environmental) outcomes. This study offers valuable insights on metaverse adoption and sustainable performance for Chinese SMEs. Additionally, it offers appropriate suggestions for managers of SMEs, policy makers, and metaverse developers.