The synergistic engine of sustainable entrepreneurship: Fueling AI-driven circular transformation and social entrepreneurial orientation with knowledge integration and digital capabilities

Abstract

Drawing on dynamic capability theory, this study examines how AI-driven circular transformation (AIT) and social entrepreneurship orientation (SEO) contribute to sustainable entrepreneurial success (SES). This study further investigates the mediating role of knowledge integration (KNI) and the moderating effect of digital capabilities (DIC) in these relationships. Data were collected from 442 top-level managers working in high-tech manufacturing industries in Guangdong Province, China, and were analyzed using partial least squares structural equation modeling. The empirical findings suggest that both AI-driven circular transformation and SEO have a positive influence on SES. Moreover, KNI is found to significantly mediate the relationships between AI-driven circular transformation, SEO, and SES. Additionally, DIC positively moderate the relationship between KNI and SES. Furthermore, this study offers implications for managers and policymakers seeking to promote sustainable entrepreneurship. The results highlight the importance of integrating AI-enabled circular practices with socially oriented entrepreneurial strategies to enhance long-term entrepreneurial outcomes. Finally, the results suggest that investments in DIC and effective KNI mechanisms can strengthen firms’ dynamic capabilities, thereby supporting sustainability-oriented innovation and entrepreneurial success.

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