From green orientation to sustainable outcomes: Exploring employee creativity and AI-driven psychological mechanisms

This study aims to explore how Green Entrepreneurial Orientation (GEO) at the organizational level drives Sustainable Performance (SP) in Small and Medium Enterprises (SMEs) within Malaysia's Industry 4.0 context, mediated by Employee Green Creative Behavior (EGCB) and moderated by AI-Driven Workplace Support (AIWS). Drawing on Resource Orchestration Theory (ROT), we propose that SMEs can amplify sustainability outcomes by strategically bundling entrepreneurial strategies, employee creativity, and AI technologies. Data from 328 employees and 91 managers across SMEs in Selangor, Malacca, and Kuching were analyzed using partial least squares structural equation modeling (PLS-SEM). Results confirm GEO's direct and indirect effects on SP via EGCB, with AIWS strengthening this mediated relationship. This study extends ROT by integrating technological and human capital in resource-constrained SMEs, offering novel insights into how Industry 4.0 tools synergize with green strategies and employee creativity to achieve sustainability.