The Effect of Artificial Intelligence on Social and Environmental Performance Through Process Optimization, Innovative Practices, and Green Innovation Research and Development Expenditures: A Study of Food Industry Companies in Tehran Province

Leila Sharifi; Mahdi Moshfegh; Mohammad Atashak

Authors

Leila Sharifi Master's Degree, Department of Business Administration, CT.C., Islamic Azad University, Tehran, Iran Author https://orcid.org/0009-0007-6471-2495
Mahdi Moshfegh Faculty Member, Management Research Department, State Management Training Center, Tehran, Iran Corresponding author https://orcid.org/0009-0008-9222-092X
Mohammad Atashak Faculty Member, Management Research Department, State Management Training Center, Tehran, Iran Author https://orcid.org/0000-0001-7084-2252

Keywords:

artificial intelligence, green innovation, social performance, environmental performance, process optimization, food industry

Abstract

This study aimed to investigate the effect of artificial intelligence (AI) on the social and environmental performance of food industry companies in Tehran Province, considering the mediating roles of process optimization, innovative practices, and green innovation research and development (R&D) expenditures. In terms of purpose, this study was applied research, and in terms of methodology, it employed a descriptive-survey design using partial least squares structural equation modeling (PLS-SEM). The statistical population consisted of managers and employees of food industry companies operating in Tehran Province during the summer of 2025. Using proportionate stratified random sampling, 384 participants were selected. Data were collected using an adapted and localized questionnaire. Its content validity was confirmed by a Content Validity Index (CVI) of 0.94 and Content Validity Ratio (CVR) values greater than 0.78. Reliability was also confirmed by Cronbach’s alpha coefficients of 0.886 for artificial intelligence, 0.870 for process optimization, 0.902 for innovative practices, 0.853 for R&D expenditures, and 0.825 for social and environmental performance. The results indicated that artificial intelligence had direct, positive, and statistically significant effects on process optimization (β = 0.851, t = 45.455), innovative practices (β = 0.828, t = 43.342), and R&D expenditures (β = 0.806, t = 33.086). Furthermore, the mediating variables played significant roles in transmitting the effect of artificial intelligence to social and environmental performance. Specifically, the mediating effects of process optimization (Z = 3.12), innovative practices (Z = 2.87), and R&D expenditures (Z = 2.45) were all statistically significant at the 0.05 level. The research model demonstrated an acceptable fit. Artificial intelligence improves the social and environmental performance of food industry companies both directly and indirectly through green innovation mechanisms. These findings provide empirical evidence for policymakers and managers seeking to leverage artificial intelligence to achieve sustainable development objectives in emerging economies.

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