<p>This study investigates the organizational sustainability of emerging firms in the robotics industry that produce industrial and service robots. These firms represent a spectrum of traditional and emerging organizations that offer solutions for enhanced productivity and service innovation. The traditional firms have strategically transformed their established organizations by reinforcing human capital development and leveraging their infrastructures and industrial intelligence for automation system solution development. The emergent ones create quantum leaps to offer innovative solutions with flexibility in their service robots for commercial and individual users. By examining the leading industrial and service robotics firms, this interdisciplinary study reveals the salient factors for organizational sustainability and innovation guided by their human capital development strategies for necessary digital transformation to develop distinct business models, particularly of the emerging service robotics sectors that demand enhanced absorptive capacity and adoption of AI for innovation. A conceptual framework is devised for firms seeking comparable transformation and the implications for the potential to augment circular economy development as well as social, environmental, and economic sustainability are articulated.</p>