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AI technology, AI narrative, and firm value

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  • Xing, Xiaoqiang
  • Zhang, Zhu
  • He, Weixuan

Abstract

Artificial Intelligence (AI) offers firms an effective approach to enhance competitive advantage and firm value in the digital economy. Drawing on the resource-based view (RBV) and sensegiving theory, this study examines the relationships among AI technology, AI narrative, and firm value. Results show that both AI technology and AI narrative positively affect firm value. Firms that engage in AI-related innovation and effectively communicate their AI initiatives tend to be more highly valued by stakeholders. Moreover, managerial ability strengthens the effect of AI technology on firm value, whereas a strong reputation amplifies the effect of AI narrative. These findings advance the understanding of AI's role in shaping firm value and contribute to the development of the RBV and sensegiving theory.

Suggested Citation

  • Xing, Xiaoqiang & Zhang, Zhu & He, Weixuan, 2026. "AI technology, AI narrative, and firm value," Technovation, Elsevier, vol. 149(C).
    • Handle: RePEc:eee:techno:v:149:y:2026:i:c:s0166497225001816
    DOI: 10.1016/j.technovation.2025.103349
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