Family Firm Origin and AI Orientation

Abstract

Although artificial intelligence (AI) has become pivotal for sustaining competitive advantage, research on how family firms prepare for and apply AI remains insufficient. Drawing on the imprinting theory, this paper investigates whether and how the origins of family firms influence AI orientation. Using data of Chinese family firms from 2010 to 2022, this study finds that entrepreneurial family firms (EFFs) are more likely to develop a stronger AI orientation than restructured family firms (RFFs). This positive relationship is weakened as the family control duration increases but strengthened with the intensification of industry competition. Mechanism tests reveal that EFFs exhibit a higher risk-taking propensity, greater adaptive ability, and a longer-term strategic horizon compared with RFFs. Further analysis demonstrates the critical role of AI orientation in enhancing family firms' innovation performance, including both innovation efficiency and innovation output. Overall, this study highlights the strategic importance of firm origin and provides implications for AI-driven management in family firms.