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Optimizing and restructuring resources for sustainable firm performance in the AI era: the role of dynamic capabilities and circular manufacturing

Year: 2025

Type: article

Abstract: Sustainability has become a critical objective for businesses, particularly with the rapid advancement of AI-driven technologies. This study examines how AI enhances sustainable resource management by leveraging firms’ adaptive capabilities and circular economy principles. Integrating theoretical insights from resource-based and circular economy perspectives, the research investigates AI’s role in fostering economic, social, and environmental sustainability. Using data from 306 manufacturing firms in Vietnam, analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM), the findings reveal that AI significantly improves resource efficiency and sustainability performance. Moreover, competitive advantage strengthens the link between firms’ adaptive capabilities, circular strategies, and sustainability outcomes. This study contributes to the literature by offering empirical evidence on the synergetic impact of AI, adaptive capabilities, and circular approaches in shaping sustainable business practices. The findings underscore the necessity of embedding AI-driven strategies into sustainability frameworks to achieve long-term competitive and environmental resilience.

Source: Sustainable Futures

DOI: 10.1016/j.sftr.2025.101441

Authors: Tung-Thanh Le, Po-Tsun Lin, Dang Thi Viet Duc, Tri-Quan Dang, Luan-Thanh Nguyen

Institutions: Ho Chi Minh City University of Foreign Languages - Information Technology, Posts and Telecommunications Institute of Technology

Language: English

Topic: Sustainable Supply Chain Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Responsible consumption and production, Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $2,340