Artificial intelligence adoption and radical green innovation: exploring the role of digital resilience and command-and-control environmental regulation

Purpose Drawing on information processing theory, dynamic capabilities theory and institutional theory, this study aims to explore the impact of artificial intelligence adoption on radical green innovation and examine the mediating role of digital resilience and the moderating role of command-and-control environmental regulation. Design/methodology/approach This study adopts a quantitative design and collects data from 273 Chinese manufacturing firms. Multiple regression analysis and bootstrap analysis are employed to test the research hypotheses. Findings The results show that artificial intelligence adoption aids firms in achieving radical green innovation and enables firms to develop proactive digital resilience and reactive digital resilience. Furthermore, both proactive digital resilience and reactive digital resilience play a partial mediating role in the relationship between artificial intelligence adoption and radical green innovation. Moreover, command-and-control environmental regulation positively moderates the relationship between artificial intelligence adoption and radical green innovation. Originality/value This study unpacks the black box of the driving mechanism for radical green innovation through artificial intelligence adoption by investigating the role of two types of digital resilience. Furthermore, by demonstrating the moderating role of command-and-control environmental regulation, this study expands the boundary condition research on artificial intelligence adoption.