Artificial intelligence, resource reallocation, and corporate innovation efficiency: Evidence from China's listed companies
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Artificial intelligence, resource reallocation, and corporate innovation efficiency : Evidence from China's listed companies. / Li, Chengming; Xu, Yang; Zheng, Hao; Wang, Zeyu; Han, Haiting; Zen, Liangen.
In: Resources Policy, Vol. 81, 103324, 2023.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Artificial intelligence, resource reallocation, and corporate innovation efficiency
T2 - Evidence from China's listed companies
AU - Li, Chengming
AU - Xu, Yang
AU - Zheng, Hao
AU - Wang, Zeyu
AU - Han, Haiting
AU - Zen, Liangen
PY - 2023
Y1 - 2023
N2 - Artificial intelligence (AI) offers businesses a way to save expenses and a fundamental shift in innovation tools in the digital era. Whether AI can improve corporate innovation efficiency has been hotly discussed, but there is little empirical evidence. We use text mining to construct a firm-level AI application index innovatively. We investigate how AI affects corporate innovation efficiency using panel data from 3185 listed companies between 2008 and 2020. The results show that AI application significantly improves corporate innovation efficiency. Meanwhile, to avoid endogeneity problems, we use instrumental variables and propensity score matching (PSM) to test and obtain consistent conclusions. Further, we find that intensifying external market competition and flattening internal organizational structure, which are the important economic forms of innovation resource reallocation, play a moderating effect. Furthermore, the impact of AI on corporate innovation efficiency is enormous in companies with a more extensive size and less management power. In addition, the higher the level of AI development in the industry and region where the enterprise is located, the stronger the impact of AI on corporate innovation efficiency. This paper provides micro evidence for the innovation effects of AI.
AB - Artificial intelligence (AI) offers businesses a way to save expenses and a fundamental shift in innovation tools in the digital era. Whether AI can improve corporate innovation efficiency has been hotly discussed, but there is little empirical evidence. We use text mining to construct a firm-level AI application index innovatively. We investigate how AI affects corporate innovation efficiency using panel data from 3185 listed companies between 2008 and 2020. The results show that AI application significantly improves corporate innovation efficiency. Meanwhile, to avoid endogeneity problems, we use instrumental variables and propensity score matching (PSM) to test and obtain consistent conclusions. Further, we find that intensifying external market competition and flattening internal organizational structure, which are the important economic forms of innovation resource reallocation, play a moderating effect. Furthermore, the impact of AI on corporate innovation efficiency is enormous in companies with a more extensive size and less management power. In addition, the higher the level of AI development in the industry and region where the enterprise is located, the stronger the impact of AI on corporate innovation efficiency. This paper provides micro evidence for the innovation effects of AI.
U2 - 10.1016/j.resourpol.2023.103324
DO - 10.1016/j.resourpol.2023.103324
M3 - Journal article
VL - 81
JO - Resources Policy
JF - Resources Policy
SN - 0301-4207
M1 - 103324
ER -
ID: 333639428