Ka Yin Chau, Pei-Kuan Lin, Tin-Chang Chang, Taufiq Ismail
This paper examines the effects of artificial intelligence (AI)-based recycling analytics (ABRA), innovation capability (INC), and entrepreneurial sustainability mindset (ESM) on green entrepreneurial success (GES) through the mediating role of knowledge innovation systems (KIS) under the moderating impact of environmental policy pressure (EPP). A structured questionnaire was used to collect data from 500 managers in Chinese manufacturing companies working in sustainability, innovation, and operations departments. The proposed partial moderation mediation framework was tested using SmartPLS 4.0 and partial least squares structural equation modeling (PLS-SEM). The findings indicate that ABRA, INC, and ESM have both direct and indirect positive effects on GES through KIS. Moreover, EPP significantly strengthens the mediating effect of KIS, showing that firms under increased regulatory pressure achieve stronger green entrepreneurial outcomes when knowledge innovation mechanisms are harnessed for productivity. This study theoretically advances the application of knowledge-based, dynamical capability, and institutional theories by showing how digital transformation and environmental policy complement each other and contribute to sustainable entrepreneurial performance. In practice, the findings are relevant to policymakers seeking to enhance environmental governance and to managers seeking to use AI technologies and knowledge innovations to become green competitors. © 2026 The Authors.
School of Business, Shenzhen City Polytechnic, Shenzhen, 518055, China; School of Mathematics, Physics and Statistics, Baise University, Guangxi, 533000, China; Centre for Quality Standard & Management, The Hang Seng University of Hong Kong, Hong Kong; Department of Business Administration, National Taichung University of Science and Technology, Taichung, Taiwan; Department of Marketing and Logistics Management, National Penghu University of Science and Technology, Taiwan; Management Department, Faculty of Economics and Business, Universitas Brawijaya, Indonesia