Impact of artificial intelligence and green entrepreneurial orientation on green entrepreneurial value creation in the handicraft industry with the moderating effect of ESG on green innovation using new approach digital capability view

This research investigates the determinants of green entrepreneurial value creation (GEVC) within the handicraft sector of Uttar Pradesh, India, by presenting a structured model that incorporates technological, environmental, and leadership dimensions. Artificial intelligence (AI) as a digital capability, green technology (GT), as a digital capability and green entrepreneurial orientation (GEO) are identified as independent variables (IVs). The research presents green Innovation (GIN) as a digital capability and mediating variable between GEO and GEVC, while environmental, social, and governance (ESG) serve as a moderating variable that influences the intensity of correlations between predictors and outcomes. Based on the notion of strategic entrepreneurship, this study uses an explanatory and descriptive design. Structured questionnaires were used to get primary data from 410 owners, managers, and employees of handicraft businesses in 9 districts. Stratified random sampling guaranteed representation, and hypotheses were evaluated utilising Partial Least Squares Structural Equation Modelling (PLS-SEM). The results show that AI, GT, and GEO have a big and positive effect on GEVC. Moreover, green Innovation partially mediates the association between GEO and GEVC, suggesting that an entrepreneurial perspective improves value creation through processes driven by Innovation. The findings further validate that ESG practices favourably influence these connections, enhancing the effect of technology and entrepreneurial variables on sustainable value generation. This study advances theoretical discourse by establishing a comprehensive framework that connects and intigerate the dynamic capability and digital capability, digital technologies, environmental sustainability, Innovation, and leadership to value creation via both direct and indirect channels. In practical terms, it underscores the need for skill development in AI implementation, sustainable practices, and digital capabilities (AI and GT), alongside regulations that promote ESG-oriented ecosystems(stakeholders). This research attracts the academicians to focus on a new approach called Digital capability view (DCV).