Enacting Green Market Transformation: How Generative AI Capability and Green Strategic Orientation Operate Through Green Market Sensemaking Under CSR

ABSTRACT

In modern business dynamics of generative AI and ecological imperatives, organizations put increasing emphasis on integrating and transforming sustainability orientations and digital intelligence into actionable green business transformation. This research develops and examines the novel perspective of integrating dynamic capability theory and sensemaking theory to explain how generative AI‐enabled capabilities and sustainability‐oriented strategic intent jointly contribute to green business transformation through organizational sensemaking processes. This model also tests the moderating role of CSR commitment on the relationships between green market sensing and green business transformation. Using a three‐wave time‐lagged survey design, data were collected from managerial informants in fashion brands, resulting in a final sample of 273 responses, and hypotheses were tested using Hayes' PROCESS macro with bootstrapping procedures. The results show that green strategic orientation and generative AI capability enhance green market sensing, which further promotes green business transformation. Importantly, green strategic orientation and generative AI capability positively affect green business transformation through green market sensing. Also, CSR commitment strengthens the enactment of green market sensemaking on green business transformation. Through an integrated theoretical perspective and digitally mediated interpretive process supported by green strategic intent and normative commitment, the study advances sustainability forces that foster contemporary green business transformation.