1.Introduction< In an ora marked by increasing environmental concerns and a growing emphasis on sustainability, organizations worldwide are seeking ways to adopt and implement green innovation practices (Tu and Wu, 2021). The adoption of green innovation can significantly contribute to reducing environmental impacts and fostering long-term sustainability (Amara and Chen, 2022). This research focuses on understanding the intricate relationships between absorptive capacity, artificial intelligence (AI), green innovation adoption, and the moderating role of organizational resource slack (Zhou et al., 2021). Absorptive capacity, the ability to acquire and apply external knowledge, has been identified as a vital factor in driving innovation. Al, on the other hand, has emerged as a transformative technology that has the potential to revolutionize various aspects of organizational functioning (Song et al., 2020). This study investigates how absorptive capacity influences the adoption of green innovation, with Al as a mediator and organizational resource slack as a moderator, to shed light on the mechanisms that can facilitate sustainable innovation within organizations.< In recent years, global concerns about climate change and environmental sustainability have intensified, compelling organizations to reassess their operations and practices (Zhang et al., 2020). One prominent area of focus is green innovation, which refers to the development and implementation of environmentally friendly technologies, processes, and products. Green innovation adoption is essential for organizations aiming to reduce their environmental footprint, meet regulatory requirements, and gain a competitive edge in an increasingly eco- conscious marketplace (Zhou et al., 2021).< Within this context, absorptive capacity, a concept rooted in knowledge management and organizational learning theories, has emerged as a critical factor that can influence innovation. Absorptive capacity refers to an organization's ability to acquire, assimilate, and apply external knowledge effectively (Amara and Chen, 2022). Organizations with higher absorptive capacity are better equipped to learn from external sources, such as competitors, customers, and research institutions, and apply this knowledge to drive innovation (Awan, Arnold, and Gölgeci, 2021). In an era marked by escalating environmental concerns and a pressing need for sustainability, the adoption of green innovation has emerged as a critical strategy for organizations worldwide. Green innovation entails the development and implementation of environmentally friendly technologies, processes, and products. It is a response to the growing demands for reducing environmental impacts, meeting regulatory requirements, and capitalizing on the opportunities presented by a rapidly evolving eco-conscious marketplace.< Following are the research objectives of the study 1. How and under what conditions does absorptive capacity and firm flexibility affect the adoption of GIA?< 2. How organization resource slack moderates the indirect effect of absorptive capacity, and firm flexibility on GIA via AI? 3. How Al mediates the relationship between absorptive capacity, and firm flexibility and GIA? 2. Theoretical Background ▪ 2.1 Absorptive Capacity and Artificial Intelligence< The fusion of manufacturing and artificial intelligence (AI) is shaping the future of industry (Arinez et al., 2020). Manufacturing firms are increasingly turning to Al to streamline operations, enhance product quality, and gain a competitive edge (Hossain et al., 2022). However, the successful integration of Al into manufacturing processes is not solely contingent on the availability of technology but also on the organization's absorptive capacity (Arcidiacono et al., 2022). Absorptive capacity, defined as the ability to recognize, assimilate, and apply external knowledge, plays a critical role in determining a manufacturing firm's Al capabilities (Arcidiacono et al., 2022). This study delves into the profound impact of a manufacturing firm's absorptive capacity on its Al capabilities, exploring the mechanisms through which knowledge absorption and utilization catalyze the adoption and successful implementation of Al technologies.< ▪ 2.2 Absorptive Capacity and Green Innovation Adoption In today's world, sustainability and environmental consciousness have become central to business operations (Tien et al., 2020). Manufacturing firms are no exception, with a growing emphasis on adopting green innovations that reduce their ecological footprint. These innovations encompass a wide array of practices, from energy-efficient processes to the development of eco-friendly products (Streimikiene et al., 2021). However, the successful adoption of green innovations in manufacturing is contingent not only on the availability of these innovations but also on the manufacturing firm's absorptive capacity. Absorptive capacity, defined as the ability to recognize, assimilate, transform, and apply external knowledge, plays a pivotal role in determining a manufacturing firm's ability to adopt and effectively implement green innovations (Zhang et al., 2020). This study delves into the profound impact of a manufacturing firm's absorptive capacity on its green innovation adoption, exploring the mechanisms through which knowledge absorption and utilization catalyze sustainable practices within the manufacturing sector. ▪ 2.3 Firm Flexibility and Artificial Intelligence< In the age of digital transformation and rapid technological advancements, the ability of organizations to adapt and respond to change has become a critical factor in their success (Trenerry et al., 2021). Firm flexibility, often referred to as organizational flexibility, represents an organization's capacity to adjust and thrive in a dynamic and uncertain environment (Troise et al., 2022). This dynamic concept plays a pivotal role in influencing how organizations integrate and leverage artificial intelligence (AI) in their operations. The impact of firm flexibility on Al adoption and implementation is profound, shaping the way organizations harness the power of Al to gain a competitive edge, foster innovation, and navigate complex and ever- evolving landscapes (Allioui, and Mourdi, 2023).< ▪ 2.4 Firm Flexibility and Green Innovation Adoption< In an era where environmental sustainability is a global imperative, the adoption of green innovation has taken center stage (Zhang et al., 2020). Green innovations encompass practices and technologies that aim to reduce the environmental footprint of organizations, from sustainable product development to eco-friendly manufacturing processes (Lin et al., 2019). The successful integration of green innovations is not solely reliant on the availability of these innovations but also on the organization's flexibility (Chu, Wang and Lai, 2019). Firm flexibility, also known as organizational flexibility, represents the ability of an organization to adapt and thrive in a dynamic and uncertain environment (Bu, Qiao and Liu, 2020). This flexibility profoundly influences how organizations adopt and implement green innovations, affecting their ability to achieve sustainability goals, reduce their environmental impact, and stay competitive in an eco-conscious world (Qi, Jia, and Zhou, 2021).< ■2.5 Organization Resource Slack+ Organizational resource slack represents a surplus of resources or capacity that an organization maintains beyond what is immediately needed for its day-to-day operations (Yang et al., 2021). These surplus resources can take various forms, such as financial reserves, unused production capacity, excess inventory, or surplus human resources. While resource slack may seem counterintuitive, it holds significant theoretical and practical significance in the field of strategic management.< Resource slack is also closely related to the theory of dynamic capabilities. Dynamic capabilities refer to an organization's ability to adapt, integrate, and reconfigure resources in response to changing market conditions (Gao and Zhang, 2023). Resource slack enhances dynamic capabilities by providing the necessary resources for swift adaptation and innovation. This theoretical perspective emphasizes that organizations with surplus resources are better equipped to navigate the complexities of a dynamic business environment (Carnes et al., 2019). 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