Environmental Competitiveness and Green Entrepreneurship in the Age of Generative artificial Intelligence: Islamic and Multidisciplinary View

Abstract

Green entrepreneurship has emerged as an urgent channel for addressing the growing environmental issues and enhancing economic competitiveness in the era of rapid technological revolution. This paper is an Islamic and multidisciplinary theorization of environmental competitiveness and environmental turbulence in green entrepreneurship, considering generative artificial intelligence (AI) as a facilitator. Based on the Resource Orchestration Theory, the research will examine (1) how environmental competitiveness and environmental turbulence directly affect green entrepreneurship, (2) the mediating impact of the adoption of generative AI on these two variables, and (3) the moderating impact of risk-taking propensity of managers. A cross-sectional research design was used, and data were collected from 250 manufacturing industry employees in Pakistan. G Power analysis was used to determine the sample size, and the hypothesis was tested using Smart PLS 4 with Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that environmental competitiveness and environmental turbulence both have a positive and significant influence on green entrepreneurship. Further, the adoption of generative AI is a mediating variable in these relationships, suggesting that the greater the AI technologies, the more firms can turn environmental pressure and uncertainty into sustainable and innovative entrepreneurial actions. Also, managers' risk-taking tendency enhances the positive impact of generative AI use on green entrepreneurship, underscoring the significance of active, ethically oriented leadership. The proposed research would make a conceptual contribution by incorporating environmental dynamics, generative AI, and a managerial orientation within Islamic and multidisciplinary frameworks, and a practical contribution by providing managers and policymakers with insights on how to advance ethical, sustainability-focused entrepreneurship in developing economies.