The configurational effects of centrifugal and centripetal forces on firms' breakthrough innovation and strategic performance in the artificial intelligence context

Abstract

Purpose

The purpose of this study is to empirically explore how firms configure centrifugal and centripetal forces in promoting breakthrough innovation (BI), thus improving their strategic performance (SP) in the artificial intelligence (AI) context.

Design/methodology/approach

This study applies the centrifugal and centripetal forces model to a survey sample of 285 Chinese AI firms. Fuzzy-set qualitative comparative analysis (fsQCA) and propensity score matching (PSM) are integrated to explore the configurational effects of three centrifugal forces—the autonomy of technical experts, knowledge search and alliance network—and two centripetal forces—strictness of organisational institutions (SOI) and human–human–AI collaboration (HHAC)—on BI, examining whether the configurations that enhance BI can further improve SP.

Findings

The results indicate that the strictness of innovation institutions (SII) and strictness of ethical institutions (SEI) are equally important for determining SOI. Three configurations can improve BI when SOI and HHAC are the core conditions; only one of three configurations can further improve SP significantly.

Originality/value

By introducing SOI composed of equally important levels of SII and SEI and HHAC, this research is one of the few empirical studies to explore the mechanisms behind the impact of centrifugal and centripetal forces on BI and SP, which may help researchers and managers address innovation challenges in the AI context.

Citation

Yu, J., Wen, Q. and Xu, Q. (2023), "The configurational effects of centrifugal and centripetal forces on firms' breakthrough innovation and strategic performance in the artificial intelligence context", European Journal of Innovation Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/EJIM-06-2022-0292