Paper Number
ECIS2026-1234
Paper Type
CRP
Abstract
Firms increasingly rely on artificial intelligence (AI) to gain competitive advantage, yet little is known about how a firm’s AI orientation contributes to faster innovation. Building on the dynamic capabilities view, this paper conceptualises AI orientation as a dynamic capability that enables firms to sense, seize, and reconfigure resources in ways that accelerate innovation. Using panel data from S&P 500 firms (2015–2024) and generalised estimating equations models, we find that AI orientation is significantly related to higher innovation speed. Our results also reveal two critical boundary conditions: a higher competitive intensity strengthens the relationship, whereas higher working capital weakens it. Our results advance research at the intersection of AI orientation, dynamic capabilities, and innovation speed by identifying key contextual factors that condition the benefits of AI orientation. For practitioners, our work underscores the strategic value of cultivating an AI orientation to achieve faster innovation in highly competitive markets.
Recommended Citation
Arbitter, Annika; Saesen, Julie; and Strese, Steffen, "Harnessing AI For Speed: A Dynamic Capabilities View On How AI Orientation Accelerates Innovation" (2026). ECIS 2026 Proceedings. 3.
https://aisel.aisnet.org/ecis2026/is_adopt/is_adopt/3
Harnessing AI For Speed: A Dynamic Capabilities View On How AI Orientation Accelerates Innovation
Firms increasingly rely on artificial intelligence (AI) to gain competitive advantage, yet little is known about how a firm’s AI orientation contributes to faster innovation. Building on the dynamic capabilities view, this paper conceptualises AI orientation as a dynamic capability that enables firms to sense, seize, and reconfigure resources in ways that accelerate innovation. Using panel data from S&P 500 firms (2015–2024) and generalised estimating equations models, we find that AI orientation is significantly related to higher innovation speed. Our results also reveal two critical boundary conditions: a higher competitive intensity strengthens the relationship, whereas higher working capital weakens it. Our results advance research at the intersection of AI orientation, dynamic capabilities, and innovation speed by identifying key contextual factors that condition the benefits of AI orientation. For practitioners, our work underscores the strategic value of cultivating an AI orientation to achieve faster innovation in highly competitive markets.
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