Adopting green AI for SME sustainability: mediating role of green investment and moderation by green servant leadership

Green Artificial Intelligence (Green AI) presents a strategic pathway for small and medium-sized enterprises (SMEs) in emerging economies to enhance sustainability by optimizing energy use, minimizing waste, and fostering eco-innovation. Despite its potential, adoption remains limited due to financi...

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Main Authors: Faizan ul Haq, Norazah Mohd Suki, Made Setini, Asim Masood, Taimur Ahmed Khan
Format: Article
Language:English
Published: Elsevier 2025-12-01
Series:Sustainable Futures
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666188825005660
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author Faizan ul Haq
Norazah Mohd Suki
Made Setini
Asim Masood
Taimur Ahmed Khan
author_facet Faizan ul Haq
Norazah Mohd Suki
Made Setini
Asim Masood
Taimur Ahmed Khan
author_sort Faizan ul Haq
collection DOAJ
description Green Artificial Intelligence (Green AI) presents a strategic pathway for small and medium-sized enterprises (SMEs) in emerging economies to enhance sustainability by optimizing energy use, minimizing waste, and fostering eco-innovation. Despite its potential, adoption remains limited due to financial constraints, technological readiness gaps, and weak institutional support. This study investigates the drivers of Green AI adoption and its impact on sustainable performance within the integrated framework of Technology-Organization-Environment (TOE) and the Technology Acceptance Model (TAM), incorporating Green Investment (GI) as a mediator and Green Servant Leadership (GSL) as a moderator. Survey data from 399 manufacturing SMEs in Pakistan were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that perceived ease of use, perceived usefulness, and organizational readiness significantly influence Green AI adoption, which in turn enhances both environmental and operational performance. GI strengthens this relationship by addressing resource barriers, while GSL moderates the adoption process by fostering leadership commitment to sustainability. By extending the TOE-TAM model, this study contributes new theoretical insights into sustainable technology adoption and offers practical recommendations for policymakers and SME leaders to support Green AI implementation in resource-constrained contexts.
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spelling doaj-art-405b73d9b85e4f069d644f33df0ebff12025-08-20T03:12:31ZengElsevierSustainable Futures2666-18882025-12-011010100210.1016/j.sftr.2025.101002Adopting green AI for SME sustainability: mediating role of green investment and moderation by green servant leadershipFaizan ul Haq0Norazah Mohd Suki1Made Setini2Asim Masood3Taimur Ahmed Khan4Bentham Science Publishers, Othman Yeop Abdullah Graduate School of Business (OYAGSB), Universiti Utara Malaysia, Sintok, MalaysiaUniversiti Utara Malaysia, Othman Yeop Abdullah Graduate School of Business (OYAGSB), Sintok, Malaysia; Institute of Sustainable Growth and Urban Development, Universiti Utara Malaysia, Sintok, Malaysia; Institute for Biodiversity and Sustainable Development, Universiti Teknologi MARA, Shah Alam, Malaysia; Corresponding author.Universitas Warmadewa, Jl. Terompong No.24, Sumerta Kelod, Kec. Denpasar Tim., Kota Denpasar, Bali 80239, IndonesiaUniversity of Wah, The Mall Road Wahcantt, PakistanInstitute of Business Administration, City Campus. Plot # 68 & 88 Garden / Kayani Shaheed Road, Karachi 74400, PakistanGreen Artificial Intelligence (Green AI) presents a strategic pathway for small and medium-sized enterprises (SMEs) in emerging economies to enhance sustainability by optimizing energy use, minimizing waste, and fostering eco-innovation. Despite its potential, adoption remains limited due to financial constraints, technological readiness gaps, and weak institutional support. This study investigates the drivers of Green AI adoption and its impact on sustainable performance within the integrated framework of Technology-Organization-Environment (TOE) and the Technology Acceptance Model (TAM), incorporating Green Investment (GI) as a mediator and Green Servant Leadership (GSL) as a moderator. Survey data from 399 manufacturing SMEs in Pakistan were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that perceived ease of use, perceived usefulness, and organizational readiness significantly influence Green AI adoption, which in turn enhances both environmental and operational performance. GI strengthens this relationship by addressing resource barriers, while GSL moderates the adoption process by fostering leadership commitment to sustainability. By extending the TOE-TAM model, this study contributes new theoretical insights into sustainable technology adoption and offers practical recommendations for policymakers and SME leaders to support Green AI implementation in resource-constrained contexts.http://www.sciencedirect.com/science/article/pii/S2666188825005660Green artificial intelligenceSustainable performanceSME innovationTOE-TAM frameworkGreen investment, Green servant leadership
spellingShingle Faizan ul Haq
Norazah Mohd Suki
Made Setini
Asim Masood
Taimur Ahmed Khan
Adopting green AI for SME sustainability: mediating role of green investment and moderation by green servant leadership
Sustainable Futures
Green artificial intelligence
Sustainable performance
SME innovation
TOE-TAM framework
Green investment, Green servant leadership
title Adopting green AI for SME sustainability: mediating role of green investment and moderation by green servant leadership
title_full Adopting green AI for SME sustainability: mediating role of green investment and moderation by green servant leadership
title_fullStr Adopting green AI for SME sustainability: mediating role of green investment and moderation by green servant leadership
title_full_unstemmed Adopting green AI for SME sustainability: mediating role of green investment and moderation by green servant leadership
title_short Adopting green AI for SME sustainability: mediating role of green investment and moderation by green servant leadership
title_sort adopting green ai for sme sustainability mediating role of green investment and moderation by green servant leadership
topic Green artificial intelligence
Sustainable performance
SME innovation
TOE-TAM framework
Green investment, Green servant leadership
url http://www.sciencedirect.com/science/article/pii/S2666188825005660
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