The missing link between Artificial Intelligence and green innovation: evidence from indonesian publicly listed firms
DOI:
https://doi.org/10.47065/imj.v6i2.577Keywords:
Artificial Intelligence, Green Innovation, Green Management Innovation, Digital Transformation, Indonesian Listed CompaniesAbstract
Digital transformation is driving companies to adopt Artificial Intelligence to increase efficiency while supporting environmental sustainability. This research is conducted to examine the influence of Artificial Intelligence on Green Innovation and test the role of Green Management Innovation as a moderating variable. The research adopts a quantitative approach based on secondary data collected from the firm’s annual and sustainability reports for the 2020-2024 period, with a total sample of 100 observations selected using the purposive sampling method. The research utilized panel data regression through STATA software, applying Random Effects estimation and robust standard errors clustered, while incorporating moderation effect analysis and control variables including firm size, firm age, firm performance, and state-owned enterprise. The results of the study show that Artificial Intelligence does not have a significant effect on Green Innovation. On the other hand, there is a significant positive relationship between Green Management Innovation and Green Innovation. In addition, the results of the moderation test show that Nevertheless, the relationship between Artificial Intelligence and Green Management Innovation is not statistically significant, suggesting that there is a lack of empirical evidence to support that Green Management Innovation influences the connection between Artificial Intelligence and Green Innovation. These findings suggest that managerial capabilities play a more important role than technological capabilities in promoting Green Innovation among publicly listed companies in Indonesia. Therefore, companies are recommended to strengthen Green Management Innovation capabilities and integrate AI adoption with green management practices to support Green Innovation more effectively.
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