Does artificial intelligence application influence firms' relative exploratory innovation? The path role of executives' temporal-spatial attention

Purpose Based on the attention-based view (ABV) and the stimulus-organism-response (SOR) framework, this study empirically investigates the impact of artificial intelligence (AI) application on firms' relative exploratory innovation (REIN). It further examines the mediating roles of executives' future and external focus preferences in this relationship. Design/methodology/approach Using panel data from Chinese A-share listed companies between 2011 and 2023, we provide empirical evidence to support our hypotheses. Findings AI application has a significant positive effect on firms' REIN. Specifically, firms with a higher level of AI application tend to reorient their innovation activities toward exploratory rather than exploitative innovation. Moreover, executives' future focus and external focus preferences serve as key mediating mechanisms in this relationship. Originality/value First, this study enhances the understanding of the trade-off between exploratory and exploitative innovation by demonstrating that AI application encourages a shift toward exploratory innovation. Second, integrating the SOR framework, it provides a nuanced, process-based perspective on how AI influences strategic innovation choices through micro-cognitive mechanisms. Finally, it contributes to the ABV literature and responds to calls for research on executive decision-making in the AI era.