Leveraging <scp>AI</scp> ‐Based Analytics, Knowledge Acquisition, Opportunity Exploitation, and Circular Innovation for High‐Performance Circular Product Development

ABSTRACT The increasing pressure of sustainability and circular development of products remains a critical challenge for high‐tech SMEs in China. The research has advanced its knowledge by determining how AI‐based analytics, knowledge acquisition, opportunity exploitation, and circular innovation orientation drive circular product development performance. The study also examines these relationships under the influence of knowledge transfer and sustainable entrepreneurial orientation, which serve as mediators and moderators. The outcomes based on PLS‐SEM, reveal that factors such as AI‐based analytics, knowledge acquisition, opportunity exploitation, and circular innovation directly influence circular product development performance. The role of knowledge transfer indirectly appears to be substantial, suggesting its crucial role in circular performance. The findings also highlight that the addition of sustainable orientation as a moderator would amplify the circular performance outcomes. However. These outcomes highlight that not only organizational and technological resources are crucial, but also behavioral factors which are equally essential in the circular product life cycle. The considerations confirm that such performances stem from a resource‐based and knowledge‐based view, which are further shaped by circular innovations; hence, they should be treated as a critical lever of circular performance.