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How do artificial intelligence applications influence firm digital innovation performance? Based on a strategic change perspective

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  • Ma, Dechao
  • Wu, Weiwei
  • Liang, Yijing
  • He, Ran

Abstract

With the rapid advancement of artificial intelligence (AI) technology, firms are encountering new opportunities in their digital innovation processes. However, existing research has not yet provided a systematic explanation of the mechanisms through which AI influences digital innovation performance, particularly with respect to the mediating role of strategic change. Drawing on the resource-based view, this study examines how AI applications shape firms' digital innovation performance and uncovers its underlying mechanisms, with a specific focus on the mediating effects of strategic aggressiveness and strategic differentiation. Using empirical analysis, we draw on a sample of Chinese A-share listed companies from 2015 to 2023 to test our hypotheses. The results reveal that AI applications significantly and positively influence digital innovation performance and simultaneously promote increases in both strategic aggressiveness and strategic differentiation. Furthermore, strategic aggressiveness and strategic differentiation play significant mediating roles in the relationship between AI applications and digital innovation performance. This study is the first to uncover the underlying mechanism through which AI affects digital innovation performance from the perspective of strategic change. It not only deepens theoretical understanding of how AI shapes digital innovation but also provides practical guidance for firms seeking to leverage AI to promote strategic change and innovation.

Suggested Citation

  • Ma, Dechao & Wu, Weiwei & Liang, Yijing & He, Ran, 2026. "How do artificial intelligence applications influence firm digital innovation performance? Based on a strategic change perspective," Technology in Society, Elsevier, vol. 86(C).
  • Handle: RePEc:eee:teinso:v:86:y:2026:i:c:s0160791x26000953
    DOI: 10.1016/j.techsoc.2026.103306
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