Green AI adoption for circular and agile supply chains: ESG-driven pathways in Vietnam's emerging technological economy

Purpose This study examines how green artificial intelligence (AI) adoption improves sustainable business performance in Vietnamese medium- and large-sized enterprises. It focuses on green circular capability, supply chain agility, and green innovation as mediators and green digital orientation and ESG compliance as moderators. The study explains how digital and sustainability capabilities generate measurable performance in emerging markets. Design/methodology/approach A structured survey of 780 Vietnamese firms was analyzed using partial least squares structural equation modeling. Findings Green AI adoption positively affects green circular capacity, supply chain agility, and green innovation, which enhance sustainable business performance. Green digital orientation strengthens the effect of green AI on supply chain agility but not circular capacity, indicating different capability pathways. ESG compliance reinforces the effect of green innovation on performance by formalizing sustainability outcomes. Originality/value This study integrates resource-based view and stakeholder theory to show how green AI capabilities are translated into accountable performance outcomes through ESG mechanisms.