LAUSR

In the contemporary digital landscape, the focus of manufacturing companies on green innovation has garnered attention in the business and academic realms. Nonetheless, the existing research system for manufacturers lacks a systematic study on how artificial intelligence literacy may bolster green innovation efforts. This study endeavors to construct a theoretical framework for artificial intelligence literacy, green information system, green absorptive capacity, and green innovation with respect to the dynamic capability theory and conducting empirical analysis utilizing survey data obtained from 288 ISO14001 manufacturing firms in Malaysia. The findings revealed that artificial intelligence literacy is a significant determinator of green absorptive capacity, the positive outcome of green absorptive capacity is green innovation, and the positive link between artificial intelligence literacy and green absorptive capacity is moderated by green information system. However, artificial intelligence literacy didn't exhibit a direct relationship with green innovation, even when considering green absorptive capacity as a mediator. These results not only offer compelling insights into the link between artificial intelligence literacy and green innovation, but also hold significant implications for academic research and policymaking concerning sustainable development and cleaner manufacturing production.