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More than just Plug and Play: Early Evidence on Organisational Capital and AI Adoption

Author

Listed:
  • Coyle, Diane
  • Nguyen, Nghi
  • Poquiz, John Lourenze
  • Riley, Rebecca

Abstract

This paper provides early evidence that AI adoption by firms is linked to management practices in unique ways. Using panel data from the UK Management and Expectations Survey (MES), we find that firms with higher baseline management scores are significantly more likely to adopt AI. This relationship is specific to AI: the same management practices show no relationship with the adoption of other technologies such as robotics, specialized equipment, or specialized software. We also find that management capabilities related to performance measurement appear strongly related to AI adoption. These results suggest that organisational complementarities are specific to different technologies, with implications for policies to encourage AI adoption by firms.

Suggested Citation

  • Coyle, Diane & Nguyen, Nghi & Poquiz, John Lourenze & Riley, Rebecca, 2026. "More than just Plug and Play: Early Evidence on Organisational Capital and AI Adoption," Discussion Papers escoe-dp-2026-13, Economic Statistics Centre of Excellence.
    • Handle: RePEc:eoe:escoed:escoe-dp-2026-13
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    File URL: https://www.repository-escoe.com/id/eprint/105/1/ESCoE%20DP%202026-13.pdf
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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • 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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