Metaverse and AI Open Innovation for Inclusive Sustainable Development: A Knowledge‐Based Perspective

ABSTRACT Sustainable development requires deeper collaboration and innovation than traditional digital tools can offer. This study examines how metaverse platforms and artificial intelligence (AI) enhance knowledge‐based processes to support sustainability outcomes across economic, social, environmental, and technological areas. While previous studies highlight the role of digital technologies, they often focus on static systems and overlook immersive and intelligent environments. To address this gap, we develop and test a model in which we position immersive knowledge co‐creation (IKCC) and virtual knowledge networking (VKN) as mediators and AI open innovation capability (AIOIC) as a moderator in the link between metaverse affordances and sustainable development. Data from 235 professionals in digitally active Chinese organizations were analyzed using PLS‐SEM. Results show that metaverse affordances can significantly improve IKCC and VKN, which, in turn, drive sustainable outcomes. This effect is stronger in organizations with high AIOIC. This study presents a multidimensional framework for innovation‐driven sustainability using emerging digital technologies.