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AI-enabled Green Business Strategy: Path to carbon neutrality via environmental performance and green process innovation

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  • Chotia, Varun
  • Cheng, Yue
  • Agarwal, Reeti
  • Vishnoi, Sushant Kumar

Abstract

This study aims to comprehend and test the mediating effect of Green Process Innovation (GPI) and the moderating effect of Green Dynamic Capabilities (GDC) on Artificial Intelligence (AI) enabled Green Business Strategies (GBS) and Environmental Performance (EP) relationship. 252 manufacturing sector employees in North India participated in the data collection. The study used Structural equation modelling and Process Macro for investigating the hypothesized model. The results supported the hypothesized association between AI-enabled GBS and EP. The study found that GPI mediate the constructive association between AI-enabled GBS and EP. GDC emerged as significant moderators for AI-enabled GBS and EP relationship. The article offers some helpful inputs for the Indian manufacturing industry to understand the importance of AI-enabled GBS in enhancing EP to move towards Carbon neutrality. The results suggest some practical implications for organizations wherein firms can maintain their focus on GPI at the organizational level by having AI-backed GBS, which will help the business achieve better EP. There is a scope to dig deep on comprehending the moderating impact of GDC in this context. The study recommends that GDC can further boost GPI, which will ultimately impact the firm's goal of carbon neutrality by shaping EP.

Suggested Citation

  • Chotia, Varun & Cheng, Yue & Agarwal, Reeti & Vishnoi, Sushant Kumar, 2024. "AI-enabled Green Business Strategy: Path to carbon neutrality via environmental performance and green process innovation," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    • Handle: RePEc:eee:tefoso:v:202:y:2024:i:c:s0040162524001112
    DOI: 10.1016/j.techfore.2024.123315
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