Achieving Sustainable Competitive Advantage through Generative AI and Digital Leadership: The Mediating Role of Green Technology Innovation

Abstract

In the current business landscape, organizations are grappling with a dual imperative: mastering digital disruption while answering the urgent call for environmental stewardship. This study moves beyond the surface level of these trends to examine how Generative AI adoption and digital leadership serve as true catalysts for a sustainable competitive advantage. By synthesizing the Resource-Based View with Dynamic Capabilities Theory, we introduced the RND Integration Model to map exactly how digital assets are converted into ecological value. Our analysis of 325 professionals suggests a critical nuance: digital tools are not a vacuum-sealed solution for success. Instead, the "missing link" is Green Technology Innovation (GTI). Our findings confirm that while GenAI adoption (B=.3761, p<.001) and visionary digital leadership (b=.6080, p<.001) are powerful drivers, their true impact is realized through mediation. Green technology innovation effectively reconfigures a firm’s digital potential into tangible, eco-friendly processes. Ultimately, these results indicate that while digital resources provide the foundation, a firm’s edge is sharpened through its dynamic ability to innovate sustainably. For leadership, the mandate is clear: prioritize bold digital foresight and ethical AI governance, as these are the primary engines for the green innovations that ensure an organization’s longevity.

Keywords: Generative AI, Digital Leadership, Green Technology Innovation, Sustainable Competitive Advantage, RND Integration Model, Dynamic Capabilities.