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Exploring how artificial intelligence capabilities impact corporate sustainability performance: Insights from Chinese manufacturing firms

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  • Renfei, Chen
  • Zhongwen, Li
  • Guangfei, Yang
  • Wenli, Li
  • Zitong, Guo

Abstract

In the context of digital transformation, the driving mechanism of Artificial Intelligence capabilities (AIC) on corporate sustainability performance (CSP) and its organizational boundary requirements have emerged as a key topic in advancing digital sustainability, both in theory and practice. This study is based on dynamic capabilities theory (DCT) and sustainable development theory, and reveals the micro-mechanisms and boundary conditions of AIC driving CSP. By extending the traditional application of AI and dynamic capabilities from competitive advantage to sustainability, this study provides a novel theoretical lens for digital sustainability. This study empirically analyzes data from Chinese manufacturing enterprises through the PLS-SEM method. The findings reveal that AIC significantly enhances CSP through a tiered enabling mechanism, but prescriptive capabilities fail to achieve their intended effects. The type of manufacturing firm constitutes a core boundary condition, and there is significant variability in the sustainable performance of AIC exerted under traditional manufacturing and Industry 4.0 manufacturing firms. The impact of AIC on CSP is significantly weaker in traditional manufacturing firms than in Industry 4.0 manufacturing firms. By adopting a dynamic capabilities perspective, this study examines the role of DCT-based AIC in enhancing CSP, expanding the prevailing technical viewpoint on their interrelationship and providing a compelling justification for integrating AI into digital sustainability frameworks. These findings offer manufacturers actionable insights for harnessing AI technologies to achieve sustainable performance during digital transformation.

Suggested Citation

  • Renfei, Chen & Zhongwen, Li & Guangfei, Yang & Wenli, Li & Zitong, Guo, 2026. "Exploring how artificial intelligence capabilities impact corporate sustainability performance: Insights from Chinese manufacturing firms," Technovation, Elsevier, vol. 149(C).
    • Handle: RePEc:eee:techno:v:149:y:2026:i:c:s0166497225002615
    DOI: 10.1016/j.technovation.2025.103429
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