TMT attention to technological innovation and AI invention: Evidence from Chinese listed firms

Abstract

Artificial intelligence (AI) has become a central field of corporate innovation, yet firms differ substantially in the extent to which they develop AI inventions. Drawing on upper echelons theory and the attention-based view, this study examines whether top management team (TMT) attention to technological innovation is associated with firms' subsequent AI invention and which organizational pathways are consistent with this relationship. Using a multi-source panel dataset of Chinese listed firms, we measure TMT attention to technological innovation from the Management Discussion and Analysis sections of annual reports and measure AI invention using AI patent applications filed by the listed firm. The results show that TMT attention to technological innovation is positively associated with subsequent AI invention. Further analyses provide evidence consistent with pathways through collaboration with universities and research institutes and AI human capital readiness, whereas internal R&D investment does not emerge as a significant pathway. We further compare AI invention with broader digital invention. TMT attention to technological innovation is also positively associated with subsequent digital invention, and research collaboration remains a significant indirect pathway, whereas internal R&D investment and digital human capital readiness do not. Additional tests show that the indirect effects through research collaboration and human capital readiness are significantly larger for AI invention, while the R&D pathway does not differ significantly across the two domains. These findings suggest that AI and broader digital invention share organizational foundations, but external scientific knowledge and specialized human capital are more strongly associated with AI invention.