Unpacking the mechanisms and consequences of artificial intelligence in enabling green value co-creation for SMEs

How does AI capabilities fundamentally reshape SMEs in digital-green transition? Given the fact that the concept "green" value co-creation is crucial for SMEs in China. This study aims to undertake a timely inquiry for SMEs' green value co-creation in China, as it still remains unclear for SMEs' green value co-creation in green AI context. To fill these gaps, we conduct a moderated-mediation analysis of 632 SMEs from southeast China, based on RBV, stakeholder theory, and organizational learning theory. The main results indicate that (1) Green value co-creation has a mediating effect between artificial intelligence capabilities and triple bottom line performance. (2) The relationship between artificial intelligence capabilities and green value co-creation is moderated by green ambidextrous learning. (3) Green ambidextrous learning can amplify the indirect effects of AI capabilities on triple bottom line performance via green value co-creation. These results advance the theoretical frontiers of green value co-creation in developing countries. We also offer practical suggestions for green AI-enabled digital-green dual transformation of SMEs.