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Governing the long game: How can artificial intelligence help little giants achieve long-term value?

Author

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  • Bai, Jingkun
  • Qu, Guimin

Abstract

With the continuous advancement of digital technologies, the question of whether artificial intelligence (AI) can enhance long-term value has become a growing focus of research. We analyze how AI affects long-term value for Chinese ‘little giants' which occupy niche markets, and identify the mechanisms underlying this relationship. The research findings demonstrate that AI creates sustainable momentum for corporate long-term value by enhancing labor investment efficiency and optimizing labor demand structures. Heterogeneity analysis reveals that in coastal regions, AI exerts a more pronounced positive impact on the long-term value of little giant enterprises. Furthermore, economic consequence analysis indicates that while boosting long-term value, AI also significantly influences labor organization patterns and skill structures. These findings provide both theoretical insights and practical implications for firms and policymakers seeking to leverage AI for sustainable value creation.

Suggested Citation

  • Bai, Jingkun & Qu, Guimin, 2026. "Governing the long game: How can artificial intelligence help little giants achieve long-term value?," Socio-Economic Planning Sciences, Elsevier, vol. 105(C).
  • Handle: RePEc:eee:soceps:v:105:y:2026:i:c:s0038012126000479
    DOI: 10.1016/j.seps.2026.102460
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    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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