Leveraging AI-driven Knowledge Networks for Sustainable Business Model Innovation: the Mediating Role of Absorptive Capacity and the Moderating Role of Sustainable Entrepreneurial Orientation

Purpose This study examines how artificial intelligence (AI)-powered knowledge networks support sustainable business model innovation, focusing on the mediating role of knowledge absorptive capacity and the moderating role of sustainable entrepreneurial orientation. Design/methodology/approach Drawing on the knowledge-based view and dynamic capability theory, the study tests a moderated mediation model using a final dataset of 400 valid responses affiliated with business schools in China. Partial least squares structural equation modelling was used to examine direct, mediated, moderated and moderated mediation effects. Findings The findings show that AI integration capability, innovation network strength and knowledge-sharing culture influence sustainable business model innovation both directly and indirectly through knowledge absorptive capacity. Sustainable entrepreneurial orientation strengthens selected relationships, particularly those involving AI capability, knowledge-sharing culture and absorptive capacity. Research limitations/implications The study is based on cross-sectional, self-reported data from business-school-affiliated respondents in China. Future research should test the model using practitioner-based samples, longitudinal designs and different industrial and national contexts. Practical implications Managers should not only invest in AI tools and collaborative networks but also develop employees' ability to interpret AI-generated knowledge and translate external knowledge into sustainability-oriented innovation. Social implications The findings highlight how AI-enabled knowledge networks can support sustainability-oriented innovation, resource efficiency, circular economy practices and broader social innovation goals. Originality/value The study integrates technological, relational, cultural, absorptive and entrepreneurial dimensions into a single framework explaining sustainable business model innovation.