Artificial Intelligence Capability and ESG Performance: The Mediating Role of Innovation Capability and the Moderating Role of Top Management Support

Abstract

This study examines how artificial intelligence (AI) capability influences corporate ESG performance through innovation capability and the moderating role of top management support. The study uses a sample of 320 observations from companies in Vietnam. The study employs the PLS-SEM method (5,000 bootstrapping iterations) to test the structural model. The results show that AI capability has a positive impact on both innovation capacity (β=0.460, p<0.001) and ESG performance (β=0.314, p<0.001). Additionally, innovation capability contributes to improved ESG performance (β=0.369, p<0.001) and partially mediates the relationship between AI and ESG. Furthermore, top management support positively moderates the relationship between AI and innovation (interaction β=0.047, p<0.05). The scales were found to be reliable (Cronbach’s α 0.87–0.89, CR >0.90, AVE>0.70) and had discriminant validity (HTMT < 0.85). The study enriches the dynamic capability framework, indicating that investment in AI must be accompanied by the development of innovation and leadership support to optimize ESG performance.