AGILE SMES UNDER AI AND PLATFORM SHOCKS: CROSS COUNTRY ANALYSIS OF STRATEGIC RESPONSES, PERFORMANCE, AND POLICY LEVERS

Rapid technological disruption, platform-based competition, and policy shifts have transformed how small and medium enterprises sustain competitiveness in global digital economies. The impact of digital infrastructure, analytical capabilities, and AI innovations on policy responsiveness, digital infrastructure, and SMEs on multi-country resilience was analyzed along with AI innovations on policy responsiveness. Covered from secondary data from the OECD, World Bank, and IMF, spanning from the years 2020-2024. Digit-Res SME model was tested using the Dynamic Capabilities and strategic Management theory. Structural Equation Modeling showed within predicted the model was correct digit-Res SME. Policy responsiveness moderated the relationship between each independent digital infrastructure, analytical capabilities, and AI innovations on the dependent variable resilience. With the model explaining 74.2 percent of the variance in resilience, the findings show the Competitiveness of Policy responsiveness the firm and Adversity Dynamic capabilities along with strategic management has the potential to transform. The findings illuminate the relationships between digital transformation, institutional flexibility, and growth at systemic.  The results feed a digital economy on strategic management which expands with the timely responsiveness of policy in digital economy.  This finding has the potential to broaden the scope of resilience in a digital economy with strategic management theory.  This research findings add to the global digital economy discourse on institutional agility and sustainable growth. Policymakers need to coordinate their policies regarding digital innovations and infrastructure to aid the adaptability of SMEs, while managers need to adopt a more data-driven approach to strategy to respond to more difficult and unpredictable environments.