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Table 3. Discriminant Validity (HTMT Ratio)
Constructs AIR DRE GPS OAC RTP
AIR
DRE 0.490
GPS 0.155 0.276
OAC 0.783 0.545 0.087
RTP 0.478 0.452 0.141 0.499
Source: Authors' calculation via SmartPLS 3
4.3. Structural model assessment and hypotheses testing
The Standardized Root Mean Square Residual (SRMR) value was 0.054 (< 0.08),
indicating a good model fit . Figure 1 illustrates the path coefficients (β) and predictive
power (R ).
2

Figure 2. PLS-SEM Structural Model Results
Source: Output from SmartPLS software
Table 4 encapsulates the hypothesis testing outcomes. The results confirm the
robust direct effect of AI Readiness on Adaptive Capacity. Crucially, Adaptive Capacity acts
as a mediating mechanism, and Governance & Policy Support significantly positively
moderates the relationships leading to resilience and regenerative outcomes.
Table 4. Hypotheses testing results
Hypotheses Path Beta (β) R 2 Conclusion
Direct effects
H1 AIR OAC 0.703 0.494 Supported
H2 OAC DRE 0.555 0.373 Supported
H3 OAC RTP 0.500 0.330 Supported

Specific indirect effects
H4 AIR OAC DRE 0.390 - Supported
H5 AIR OAC RTP 0.351 - Supported

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