Purpose This study aims to examine how digital sustainability empowerment drives digital green innovation performance among emerging market small and medium-sized enterprises (SMEs), investigating the mediating role of firm customer participation in corporate social responsibility (CSR) value co-creation and the moderating effect of CSR-oriented artificial intelligence (AI) capability. Design/methodology/approach Drawing on stakeholder theory and dynamic capabilities view, the authors used mixed-methods analysis with time-lagged data from 411 emerging market SMEs. Using partial least squares structural equation modeling, PROCESS Macro and fuzzy-set qualitative comparative analysis (fsQCA), they tested the proposed relationships. Findings Results reveal that digital sustainability empowerment significantly enhances digital green innovation performance. Firm customer participation in CSR value co-creation positively mediates this relationship, while CSR-oriented AI capability strengthens the customer co-creation and green innovation link. The fsQCA analysis identifies multiple configurational pathways to achieve superior green innovation performance. Practical implications The findings provide strategic guidance for SME managers on leveraging digital technologies and AI capabilities to enhance CSR value co-creation processes and drive green innovation performance in emerging markets. Originality/value This research demonstrates how digital transformation reshapes CSR practices through B2B customer value co-creation, creating sustainable innovation opportunities for emerging market enterprises. The study advances understanding of mechanisms linking digital sustainability capabilities with green innovation outcomes through customer collaboration.
Nguyen et al. (2026) studied this question.