Artificial intelligence digital employees and sustainable innovation in online retail: The mediating role of ambidextrous green innovation and the moderating role of ethical anxiety

The proliferation of artificial intelligence (AI) is rapidly transforming businesses across industries, driving an increased focus on sustainable innovation for long-term competitiveness. Within the online retail sector, AI-powered digital employees are emerging as key players in this transformation. This study investigates how AI digital employee adoption influences future sustainable innovation performance in online retail, examining the mediating roles of ambidextrous green innovation and the moderating effect of ethical anxiety. Drawing on the Antecedents-Behaviour-Consequences (ABC) model, we propose an Adoption-Innovations-Future Performance (AIF) framework to examine these relationships in the context of TikTok online retailers. Using a two-wave time-lagged survey of 302 online retailers, we find that digital employee adoption positively affects exploitative and exploratory green innovation, which in turn enhances future sustainable innovation performance. Digital employee ethical anxiety negatively moderates the relationship between adoption and green innovation but strengthens the positive link between adoption and future performance. The fsQCA results reveal three configurations leading to high sustainable innovation performance. This research contributes to the literature on digital transformation in retail and consumer services by elucidating the complex mechanisms through which digital employees influence organizational outcomes. The findings offer important implications for retailers seeking to leverage digital technologies for sustainability in their operations and customer service.