Symbolic or substantive? how does state ownership impact firms’ strategic choice in AI-related behaviours?

Artificial Intelligence (AI) plays a significant role in driving economic growth and industry development. This study integrates the theory of institutional logic and legitimacy to examine the influence of various ownership structures on firms’ AI-related strategic behaviours. We categorised firms’ AI-related strategic behaviours into symbolic and substantive types. Our study of Chinese-listed manufacturing firms from 2015 to 2021 found that state ownership has a positive effect on substantive AI innovation but an adverse effect on symbolic AI disclosure. The study also examined the contingency effects of regional institutional and digital infrastructure development on the focal relationship. Our study enhances the AI literature by identifying different types of firms’ AI-related strategic behaviours. It also addressed how institutional factors affect firms’ AI-related strategic behaviours in China.