Artificial intelligence orientation, ESG orientation, and opportunity sensing capability: The roles of absorptive capacity and entrepreneurial opportunity recognition in Yunnan's tourism industry

This study examines how artificial intelligence (AI) orientation, environmental, social, and governance (ESG) orientation, and opportunity sensing capability influence absorptive capacity, entrepreneurial opportunity recognition, and firm performance within Yunnan's tourism industry. Grounded in Dynamic Capabilities Theory, the study conceptualizes AI orientation, ESG orientation, and opportunity sensing capability as strategic sensing mechanisms, absorptive capacity as a central seizing capability, and entrepreneurial opportunity recognition as a transforming pathway toward firm performance. Using information gathered from 502 managerial respondents engaged in tourism-related businesses in Yunnan Province, China, a quantitative study approach was used. The suggested correlations and mediation effects were tested using covariance-based structural equation modeling (CB-SEM), confirmatory factor analysis (CFA), structural equation modeling (SEM), and bootstrapping with 5,000 resamples. The findings indicate that AI orientation significantly enhances absorptive capacity and entrepreneurial opportunity recognition, highlighting the importance of technology-driven sensing capabilities in organizational adaptability and opportunity identification. Opportunity sensing capability also positively influences entrepreneurial opportunity recognition, although its effect on absorptive capacity is not statistically significant. In contrast, ESG orientation demonstrates no significant effect on absorptive capacity and a significant negative direct effect on firm performance, suggesting that sustainability-oriented initiatives may generate short-term operational and resource pressures when not sufficiently integrated into organizational capabilities. The results further reveal that absorptive capacity significantly improves entrepreneurial opportunity recognition and firm performance, while mediation analysis confirms that organizational performance is primarily shaped through capability-driven pathways involving absorptive capacity and entrepreneurial opportunity recognition. Dynamic Capabilities Theory's sensing-seizing-transforming logic is further supported by the important serial mediation pathway. The study contributes theoretically by integrating AI orientation, ESG orientation, organizational learning, and opportunity recognition into a unified capability-based framework explaining firm performance in digitally transforming tourism ecosystems. Practically, the findings suggest that tourism enterprises should strengthen organizational learning, knowledge transformation, and opportunity recognition capabilities to effectively convert digital and sustainability initiatives into long-term competitive performance.