A Conceptual Framework Linking AI Capabilities, ESG Ecosystems and Sustainable Venture Growth
Sazina Khan1 and Sonia Justin Raj2
Volume 2, Issue 2
Date of Publication: 07 August 2026
Pages: 01-20
Artificial intelligence (AI) technology has disrupted how startups sense opportunities, leverage resources, build sustainable business models, and scale up through innovation ecosystems. While significant progress has been made in the study of digital entrepreneurship, entrepreneurial ecosystems, and sustainable entrepreneurship, there is still a lack of theoretical insight into the ways AI capabilities contribute to sustainable startup scalability. This is a conceptual paper that presents an AI-powered sustainable startup scalability framework targeted at the Technovation’s community of technological innovation, entrepreneurship, and technology management researchers. The framework draws upon dynamic capabilities theory, the resource-based view, entrepreneurial ecosystems theory, stakeholder theory, and sustainable entrepreneurship literature to posit that AI capabilities foster sustainable startup scalability by being embedded in ESG innovation ecosystems. In addition, the study highlights digital infrastructure readiness, data governance, ecosystem complementarity, absorptive capacity of founders and institutional environment as boundary conditions that affect the scalability and sustainability of venture growth through AI capability. In this respect, the paper advances technological innovation and entrepreneurship literature by shifting its focus from AI adoption within firms and theorizing AI as an ecosystem-embedded capability related to the scalability and sustainability of ventures. Finally, it presents research propositions for scholars as well as implications for entrepreneurs, incubators, accelerators, investors and policymakers that would like to align AI-enabled venture growth with responsible innovation and ESG entrepreneurship.
Artificial Intelligence, Sustainable Entrepreneurship, Scalability of Startups, Innovation Ecosystem, ESG, Dynamic Capabilities, Responsible Innovation
Sazina Khan, Senior Outreach Manager and Faculty, Westford University College, Sharjah, United Arab Emirates.
Khan, S., Raj, S. J. (2026). Artificial Intelligence Capabilities and Sustainable Startup Scalability: The Role of ESG-Oriented Innovation Ecosystems. J. Cogn. Comput. Ext. Realities, 2(2), 01-20.