The Interplay of Green Intellectual Capital, Artificial Intelligence, Frugal Innovation, and Triple Bottom Line Performance

ABSTRACT The study analyzes the critical role of green intellectual capital (GIC) in enhancing SMEs' economic, social, and environmental performance, with frugal innovation (FI) mediating these relationships. The study also investigates the moderating effect of artificial intelligence (AI) adoption on the relationship between GIC and FI. The hypotheses were tested using PLS‐SEM. Data were collected from 318 manufacturing SMEs operating in three Pakistani cities. Our findings indicate that GIC significantly influences firms' economic, social, and environmental performance in an emerging economy and that FI mediates these relationships. Furthermore, AI adoption strengthens the relationship between GIC and FI. To our knowledge, no previous study has systematically examined GIC, FI, and AI adoption alongside economic, social, and environmental performance, particularly in the context of manufacturing SMEs in an emerging Asian economy. First, this study examines the mediating role of FI in the relationship between GIC and triple bottom line (TBL) performance. Second, it analyzes the moderating role of AI adoption in the relationship between GIC and FI, highlighting the role of technology adoption in strengthening this relationship. Finally, it extends the resource‐based view (RBV) to a technological context by examining how GIC, FI, and AI adoption affect TBL performance.