ABSTRACT This study investigates the role of AI‐enabled capabilities, green servant leadership, and Industry 4.0 technologies in promoting green servitization and, ultimately, net‐zero results in the Chinese furniture manufacturing industry, while evaluating the moderating influence of transformative capacity on this pathway. This study uses the sample of 313 workers in environmentally certified Chinese furniture companies. Partial least squares structural equation modeling (PLS‐SEM) was used to test the higher‐order model and hypothesized relationships between constructs. The findings confirm that AI‐powered dynamic capabilities, green servant leadership, and Industry 4.0 adoption are very effective in promoting green servitization. Green servitization significantly predicts net‐zero production and fully mediates the impacts of all three antecedents on net‐zero manufacturing. Transformative capacity exerts both a direct effect and a reinforcing moderating effect, strengthening the green servitization and net‐zero production relationship. This indicates that the success of firms in converting green strategies into carbon reduction outcomes is strongly associated with adaptive capability. Managers and policymakers adopting carbon neutrality should combine digital technologies with service‐oriented sustainability models and promote green leadership, accelerate Industry 4.0 adoption, and develop transformative capabilities to speed up the process of transition toward carbon neutrality. The research contributes to literature by creating and testing a higher‐order sustainability transformation model that discovers how AI‐driven servitization can help companies to achieve net‐zero production using dynamic capabilities and readiness within the organization. Focusing on China's furniture industry, the research provides novel theoretical insights and contextualized evidence for emerging markets' sustainability transition.
Jinguo Li (Tue,) studied this question.
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