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AI technology innovation, knowledge management and corporate environmental sustainability: Evidence from Chinese patent data

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  • Zu, Xu
  • Ni, Guangxian
  • Hu, Ruifeng

Abstract

The advancement of artificial intelligence (AI) presents new opportunities for firms to enhance their environmental sustainability. However, the mechanisms through which AI technology innovation improves corporate environmental sustainability performance remain inadequately researched. This study conducts an empirical examination of how AI technology innovation influences corporate environmental sustainability performance, utilizing patent datasets measuring AI technology innovation from Chinese listed firms spanning the years 2009–2023. The results indicate that AI technology innovation significantly improves corporate environmental sustainability performance, with knowledge management capacity identified as the primary mediating mechanism. Heterogeneity analysis reveals that these effects are more pronounced in non-high-tech firms and among firms located in eastern and western China. Furthermore, absorptive capacity positively moderates the relationship between knowledge management capacity and corporate environmental sustainability performance. This study enhances the understanding of the strategic role of AI technology innovation in sustainable development and underscores the significance of organizational capabilities in facilitating technology-driven transformations. Additionally, it offers practical insights for practitioners and policymakers seeking to leverage AI technology innovation to achieve environmental sustainability objectives.

Suggested Citation

  • Zu, Xu & Ni, Guangxian & Hu, Ruifeng, 2025. "AI technology innovation, knowledge management and corporate environmental sustainability: Evidence from Chinese patent data," Technology in Society, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:teinso:v:83:y:2025:i:c:s0160791x25001745
    DOI: 10.1016/j.techsoc.2025.102984
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