Tapping into the green potential: The power of artificial intelligence adoption in corporate green innovation drive

Раскрывая зелёный потенциал: роль внедрения искусственного интеллекта в стимулировании корпоративных зелёных инноваций
Murtaza Hussain, Shaohua Yang, Umer Sahil Maqsood, R. M. Ammar Zahid
2024-02-07

Artificial intelligence adoptionChinese listed firmsGreen innovationGreen patentsPropensity score matching
Abstract In response to growing environmental challenges, there is an urgent need to understand how corporations can leverage new technologies to boost sustainability and eco‐innovation. This study addresses this need by investigating Artificial Intelligence adoption (AIA) influence on green innovation (greenovation) performance among Chinese firms as China's expanding digital economy and severe ecological pressures make it unique study context. Specifically, panel data on 8722 firm‐year observations from Chinese listed firms from 2008 to 2017 is analyzed to test the relationship. The main findings show that higher AIA is associated with increased greenovation, measured through green patents. This positive effect is more pronounced among privately‐owned enterprises versus state‐owned enterprises. Additionally, financial analysts are found to strengthen the AI‐greennovation link through information dissemination and scrutiny. Importantly, the study findings are robust and validated through a battery of tests, including change regression, instrumental variable methods, propensity score match (PSM), and sysGMM. Overall, this study provides novel empirical evidence that AI holds promise as an enabler of corporate eco‐innovation. The findings have crucial implications for research and practice regarding leveraging digital technologies for sustainability, especially in emerging economies like China that is undergoing rapid technological change.
1
Artificial intelligence adoption is positively associated with corporate green innovation, measured by green patent output, among Chinese listed firms.
2
Financial analysts strengthen the AI–green innovation relationship through information dissemination and monitoring scrutiny.
3
Results based on 8,722 Chinese firm-year observations from 2008–2017 remain robust across change regression, instrumental variables, propensity score matching, and system GMM tests.
4
The findings provide empirical evidence that artificial intelligence can enable corporate eco-innovation in an emerging economy undergoing rapid digital transformation.
5
The positive relationship between artificial intelligence adoption and green innovation is stronger in privately owned enterprises than in state-owned enterprises.

Artificial Intelligence adoption in Chinese listed firms

The influence of Artificial Intelligence adoption on corporate green innovation performance, including the moderating roles of ownership type and financial analysts

Publication Details
Publication Date
2024-02-07
Journal
Publisher
ISSN
Cited by
209
Access Type
Author Information
Authors
Murtaza Hussain
Shaohua Yang
Umer Sahil Maqsood
R. M. Ammar Zahid
Explore further
Open the scid.ai AI chat with a ready-made request: it will find papers on a similar topic and help build a literature review.
Find similar papers in the chat →
Make a presentation
100%