This study examines how green artificial intelligence capability influences circular economy practices, green innovation strategy, and green innovation culture, and how these factors collectively enhance sustainable performance in manufacturing firms. It further explores how the alignment and imbalance between green innovation strategy and green innovation culture shape sustainability outcomes.
Survey data from 211 Vietnamese manufacturing firms were analyzed using partial least squares structural equation modeling and response surface analysis to test the individual and interaction effects among variables.
Results reveal that green artificial intelligence capability significantly improves circular economy practices, green innovation strategy, and green innovation culture, highlighting its strategic role in green transformation. Circular economy practices indirectly enhance sustainable performance through innovation-oriented mechanisms rather than through direct effects. Furthermore, firms achieve the highest sustainability outcomes when green innovation strategy and green innovation culture are both high and aligned.
This research integrates digital, strategic, and cultural dimensions within a unified model, advancing the Dynamic Capabilities Theory and Natural Resource-Based View by explaining how AI-driven and innovation-based capabilities jointly foster sustainability. It offers practical guidance for managers and policymakers in emerging economies on aligning technological, strategic, and cultural enablers to accelerate green transformation.
