AI capability and environmental sustainability performance: Moderating role of green knowledge management

The capabilities of AI may not only foster green technology innovations but also enhance the environmental sustainability performance of organizations. Despite this, the interplay between AI capabilities, green technology innovations, and environmental sustainability performance largely remain unexplored in view of green knowledge management. The present study aims to fill this gap by examining the impact of AI capabilities on green technology innovations and ultimately on environmental sustainability performance. This study also examines how green technology innovations mediates between AI capabilities and environmental sustainability performance, and how green knowledge management moderates the relationships between AI capabilities and green technology innovations and between AI capabilities and environmental sustainability performance. To validate the proposed conceptual relationships, data were collected from IT companies of Pune, India from 237 respondents, and they were validated with PLS-SEM 3.0 software. The results of the present study contribute theoretically to the resources-based view, knowledge-based view, dynamic capability, and absorptive capacity theories. Moreover, this study has also contributed practically by revealing the potential of AI capabilities and green technology innovations to enhance environmental sustainability performance through green knowledge management. The insights of the study could also help managers to leverage the AI capabilities to enhance green technology innovations and to improve environmental sustainability performance of organizations.