The Impact of AI Technology on Firms Service Innovation in Business

Shoaib Abdul Basit, Behrooz Gharleghi, Mahdi Jafari, Sara Ravan Ramzani and Phungmayo Horam
Additional contact information
Shoaib Abdul Basit: School of Business Management and Creativity, Arden University, Berlin, Germany
Behrooz Gharleghi: School of Business Management and Creativity, Arden University, Berlin, Germany
Mahdi Jafari: Department of Business, Duquesne University, Pittsburgh, PA, USA
Sara Ravan Ramzani: Department of Business, GISMA University of Applied Sciences, Potsdam, Germany
Phungmayo Horam: Department of Business, GISMA University of Applied Sciences, Potsdam, Germany

Journal of Information Economics, 2025, vol. 3, issue 2, 51-67

Abstract: Artificial Intelligence has emerged as the driving force for firms’ innovation and enhanced operational efficiency of the businesses. The aim of this paper is to identify the ever-arching role of Artificial Intelligence (AI) in fostering service innovation in firms in Germany. Using the data from Mannheim Innovation Panel (MIP) dataset MIP 2021, we employed the logistic regression via STATA to explore the role of AI, internal R&D, external R&D, and cooperation with other firms on the firms’ service innovation in Germany. Some control variables are used to account for firm size, education, and training in the firms. The empirical results reveal that internal and external R&D have a positive and significant impact on service innovation while cooperation does not play such a role. However, these interactions change their impact on service innovation when embodied with artificial intelligence. We found that AI positively significantly moderates the impact of cooperation on service innovation. However, the AI moderation impact got insignificant in case of internal and external R&D. This study offers policy implications for service firms.

Keywords: Artificial Intelligence; Innovation; Cooperation; Internal R&D; External R&D (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.anserpress.org/journal/jie/3/2/50/pdf (application/pdf)
https://www.anserpress.org/journal/jie/3/2/50 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bba:j00008:v:3:y:2025:i:2:p:51-67:d:474

Access Statistics for this article

Journal of Information Economics is currently edited by Ramona Wang

More articles in Journal of Information Economics from Anser Press
Bibliographic data for series maintained by Ramona Wang ().