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This study investigates how artificial intelligence (AI) drives green innovation (GI) in the Turkish construction sector by examining the strategic roles of organizational agility (OA) and technological readiness (TR). Grounded in Dynamic Capabilities Theory (DCT), the research explores how AI enhances sustainability performance through adaptive organizational processes and reconfigurable resources. A quantitative design employing Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze survey data collected from 302 managerial-level professionals across construction organizations. Results reveal that AI significantly influences both GI and OA, while OA not only contributes directly to GI but also mediates the AI–GI relationship. Furthermore, TR moderates these relationships, amplifying the positive effects of AI on agility and of agility on green innovation. This suggests that firms with higher technological readiness are better positioned to convert AI-driven insights into sustainable outcomes. By integrating AI into decision-making, resource optimization, and predictive analytics, construction firms can enhance their dynamic capabilities and improve sustainability performance. The study extends DCT by clarifying how AI-enabled agility operates as a pathway for sustainable transformation in emerging markets and offers actionable insights for engineering managers seeking to foster innovation, digital resilience, and environmental responsibility in an increasingly technology-driven industry.
Ashergawi et al. (Tue,) studied this question.