Role of Artificial Intelligence (AI) Adoption and Digital Transformation in Enhancing Sustainable Business Performance: The Mediating Effect of Green Product Innovation

Purpose: adoption and digital transformation on sustainable firm performance, with a specific focus on the mediating role of green innovation practices. It aims to uncover how advanced digital technologies and AI can drive sustainability through innovation in manufacturing firms. Design/Methodol...

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Main Authors: Gohar Mahmood, Allah Ditta, Muhammad Ramzan, Zahid Abbas
Format: Article
Language:English
Published: CSRC Publishing 2024-12-01
Series:Journal of Accounting and Finance in Emerging Economies
Subjects:
Online Access:https://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/3172
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author Gohar Mahmood
Allah Ditta
Muhammad Ramzan
Zahid Abbas
author_facet Gohar Mahmood
Allah Ditta
Muhammad Ramzan
Zahid Abbas
author_sort Gohar Mahmood
collection DOAJ
description Purpose: adoption and digital transformation on sustainable firm performance, with a specific focus on the mediating role of green innovation practices. It aims to uncover how advanced digital technologies and AI can drive sustainability through innovation in manufacturing firms. Design/Methodology/Approach: The research employs a quantitative, questionnaire-based survey conducted among 311 manufacturing firms. Structural equation modeling (SEM) was utilized to analyze the relationships between AI adoption, digital transformation, green innovation practices, and sustainable firm performance. Findings: The findings reveal that both AI adoption and digital transformation significantly enhance sustainable firm performance. Green innovation practices partially mediate this relationship by leveraging digital capabilities to develop environmentally friendly products and processes. Originality/Value: This research contributes to the growing literature on sustainability and digital innovation by introducing green innovation practices as a mediator between AI, digital transformation, and sustainable firm performance. It provides a novel perspective on how digital advancements can enable sustainability in the manufacturing sector.
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institution Kabale University
issn 2519-0318
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language English
publishDate 2024-12-01
publisher CSRC Publishing
record_format Article
series Journal of Accounting and Finance in Emerging Economies
spelling doaj-art-ddb4e74d47504650965d25f9aec8d5592025-02-03T17:47:11ZengCSRC PublishingJournal of Accounting and Finance in Emerging Economies2519-03182518-84882024-12-0110410.26710/jafee.v10i4.3172Role of Artificial Intelligence (AI) Adoption and Digital Transformation in Enhancing Sustainable Business Performance: The Mediating Effect of Green Product InnovationGohar Mahmood0Allah Ditta1Muhammad Ramzan2Zahid Abbas3College of Commerce, Government College University, Faisalabad, PakistanAir University, Multan Campus, PakistanAir University, Multan Campus, PakistanAir University, Multan Campus, Pakistan Purpose: adoption and digital transformation on sustainable firm performance, with a specific focus on the mediating role of green innovation practices. It aims to uncover how advanced digital technologies and AI can drive sustainability through innovation in manufacturing firms. Design/Methodology/Approach: The research employs a quantitative, questionnaire-based survey conducted among 311 manufacturing firms. Structural equation modeling (SEM) was utilized to analyze the relationships between AI adoption, digital transformation, green innovation practices, and sustainable firm performance. Findings: The findings reveal that both AI adoption and digital transformation significantly enhance sustainable firm performance. Green innovation practices partially mediate this relationship by leveraging digital capabilities to develop environmentally friendly products and processes. Originality/Value: This research contributes to the growing literature on sustainability and digital innovation by introducing green innovation practices as a mediator between AI, digital transformation, and sustainable firm performance. It provides a novel perspective on how digital advancements can enable sustainability in the manufacturing sector. https://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/3172Artificial intelligenceDigital transformationGreen innovation practicesSustainable firm performanceSustainability
spellingShingle Gohar Mahmood
Allah Ditta
Muhammad Ramzan
Zahid Abbas
Role of Artificial Intelligence (AI) Adoption and Digital Transformation in Enhancing Sustainable Business Performance: The Mediating Effect of Green Product Innovation
Journal of Accounting and Finance in Emerging Economies
Artificial intelligence
Digital transformation
Green innovation practices
Sustainable firm performance
Sustainability
title Role of Artificial Intelligence (AI) Adoption and Digital Transformation in Enhancing Sustainable Business Performance: The Mediating Effect of Green Product Innovation
title_full Role of Artificial Intelligence (AI) Adoption and Digital Transformation in Enhancing Sustainable Business Performance: The Mediating Effect of Green Product Innovation
title_fullStr Role of Artificial Intelligence (AI) Adoption and Digital Transformation in Enhancing Sustainable Business Performance: The Mediating Effect of Green Product Innovation
title_full_unstemmed Role of Artificial Intelligence (AI) Adoption and Digital Transformation in Enhancing Sustainable Business Performance: The Mediating Effect of Green Product Innovation
title_short Role of Artificial Intelligence (AI) Adoption and Digital Transformation in Enhancing Sustainable Business Performance: The Mediating Effect of Green Product Innovation
title_sort role of artificial intelligence ai adoption and digital transformation in enhancing sustainable business performance the mediating effect of green product innovation
topic Artificial intelligence
Digital transformation
Green innovation practices
Sustainable firm performance
Sustainability
url https://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/3172
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