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How does cultural diversity influence corporate AI development?

Author

Listed:
  • Liu, Rong
  • Luo, Wenying
  • Su, Ruiqian

Abstract

This study explores the impact of cultural diversity on corporate artificial intelligence (AI) development and its underlying mechanisms. Empirical analysis demonstrates that cultural diversity significantly enhances AI development within firms, primarily by fostering innovation. Heterogeneity analysis further reveals that this positive effect is more pronounced in firms with lower financial constraints, higher levels of marketization, and nonstate-owned enterprises. This study provides a fresh perspective on the intersection of cultural diversity and corporate technological innovation, offering valuable policy insights for promoting AI adoption and advancement in firms.

Suggested Citation

  • Liu, Rong & Luo, Wenying & Su, Ruiqian, 2025. "How does cultural diversity influence corporate AI development?," Finance Research Letters, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325007652
    DOI: 10.1016/j.frl.2025.107506
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    References listed on IDEAS

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    1. Yan, Jin & Li, Zuowen & Li, Yanru, 2025. "Dialect diversity and enterprise digital transformation," Finance Research Letters, Elsevier, vol. 82(C).

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    Keywords

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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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