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Artificial intelligence and innovation capability: A dynamic capabilities perspective

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  • Gao, Yang
  • Liu, Siqiang
  • Yang, Lu

Abstract

In the digital age and a complex and ever-changing environment, artificial intelligence technology is gradually penetrating various aspects of social life. It has a profound impact on the innovation practices of enterprises. For enterprises, actively utilizing artificial intelligence technology has become a key strategic decision to enhance innovation capabilities and effectiveness in a challenging environment. Based on this, this study is based on the theory of dynamic capabilities, exploring the mediating role of digital adaptability and its continuous mediating role with market perception, to construct a chain mediation model of "enterprise artificial intelligence use digital adaptability (perceptual adaptability, social adaptability, production adaptability) market perception enterprise innovation capability" mechanism. This study first verified the existence of the main effect relationship through pre-experimental analysis of data from Chinese A-share listed companies from 2010 to 2021 and further conducted empirical research based on 511 paired questionnaire data. The results indicate that there is a significant positive correlation between the use of artificial intelligence in enterprises and their innovation capabilities; The use of artificial intelligence in enterprises affects their innovation capabilities through digital adaptability (perception adaptability, social adaptability, production adaptability); Market perception plays a mediating role in the process of how the use of artificial intelligence in enterprises affects their innovation capabilities; Digital adaptability (perceptual adaptability, social adaptability, production adaptability) and market perception play a chain mediating role between the use of artificial intelligence in enterprises and their innovation capabilities. This study aims to provide theoretical guidance and practical inspiration for enterprises to use AI technology to improve innovation efficiency.

Suggested Citation

  • Gao, Yang & Liu, Siqiang & Yang, Lu, 2025. "Artificial intelligence and innovation capability: A dynamic capabilities perspective," International Review of Economics & Finance, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:reveco:v:98:y:2025:i:c:s1059056025000863
    DOI: 10.1016/j.iref.2025.103923
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    4. Liping Zhang & Jinyi Chen & Hanhui Qiu & Hailin Li & Yenchun Jim Wu, 2026. "The interactive effects of knowledge elements and collaboration networks on exploratory innovation performance: evidence from the Chinese artificial intelligence industry," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-18, December.
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    8. Shao V. Tsiu & Mfanelo Ngobeni & Lesley Mathabela & Bonginkosi Thango, 2025. "Applications and Competitive Advantages of Data Mining and Business Intelligence in SMEs Performance: A Systematic Review," Businesses, MDPI, vol. 5(2), pages 1-49, May.
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