Reframing responsible GenAI as ethical fit: integrating human collaboration, trust and dynamic capabilities for sustainable business performance

Purpose This research grounds on person-environment fit theory, to examine the effects of employee GenAI collaboration, GenAI trust and dynamic capability on business performance through the mediating role of responsible and explainable GenAI (REGAI). Design/methodology/approach Data were collected from 315 professionals via the Prolific Academic platform using purposive sampling. The hypothesized model was tested using covariance-based structural equation modeling (CB-SEM). Findings The results demonstrate that GenAI trust, dynamic capability, and employee-GenAI collaboration significantly enhance REGAI, which in turn exerts a strong positive impact on business performance. Dynamic capability directly influences performance, while employee-GenAI collaboration and GenAI trust exert indirect effects through REGAI. Originality/value The research highlights that strengthening algorithmic transparency, fostering employee GenAI partnership and embedding ethical justice into GenAI governance can jointly create “ethically intelligent” organizations.