AI-orientation and company climate action: The moderating role of dependency structure and innovation capability

Abstract

As climate change risks increasingly threaten corporate economic activities, an increasing number of firms become aware of need to take actions and develop strategies for addressing climate change or sustainability. However, B2B companies may face challenges in implementing green strategies because of their close relationships with other partners in the supply chain. Hence, from a strategic orientation perspective, this study explores the impact of AI orientation on corporate climate actions based on the dynamic capabilities view. Using a sample of 4050 China's listed companies from 2018 to 2021, the study employs instrumental variables to examine the impact of AI orientation on corporate climate actions, while also considering the moderating effects of dependent structure and innovation capability. The findings suggest that AI orientation promotes corporate climate actions, and that higher innovation capability reinforces this effect. However, the stronger the external dependency is, the weaker the positive effect of AI orientation on corporate climate action will be. The research outcomes provide theoretical and empirical evidence for B2B firms to reasonably apply AI to achieve goals of environmental protection and emission reduction.