Abstract
PURPOSE: Considering the importance of pro-environmental behaviors in achieving Sustainable Development Goals, this paper examines and strengthens the understanding of how green rewards shape employees' sustainable actions by integrating Stimulus-Organism-Response theory with Social Cognitive Theory. This paper explores the interplay between green rewards and pro-environmental behaviors. Specifically, this paper highlights the role of environmental passion as an internal mediating mechanism, and also analyzing the moderating influence of AI literacy as a critical capability in the digital era. METHODS: This paper employed the Partial Least Squares Structural Equation Modeling combined with Artificial Neural Network analysis to capture both linear and nonlinear patterns in employee behaviors. The questionnaire respondents were from employees across various manufacturing and service sectors in China, with a total of 445 valid responses. RESULTS: The results revealed that green rewards not only motivate pro-environmental behaviors but also foster positive environmental passion, which further enhance sustainable actions. Moreover, AI literacy significantly strengthens the positive influence of green rewards, amplifying their impacts on both environmental passion and pro-environmental behaviors. In addition, Artificial Neural Network analysis consistently identifies green rewards as the most influential predictor for both pro-environmental behaviors and environmental passion. CONCLUSION: These findings provided empirical support for the Stimulus-Organism-Response theory and the Social Cognitive theory. Results demonstrates that external incentives and internal psychological states jointly shape sustainable employee behaviors. To effectively promote pro-environmental behaviors, policymakers and managers should design targeted, sector-specific incentives and boost AI literacy.