The Utilisation of Artificial Intelligence in the Export Performance of MNCs: The Role of Cultural Distance

Syed Khusro Chishty (), Sonia Sayari, Amani Hamza Mohamed, Mohammed Faishal Mallick, Nusrat Khan and Asra Inkesar
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Syed Khusro Chishty: Department of Business Administration, College of Administrative and Financial Science, Saudi Electronic University, Jeddah 23442, Saudi Arabia
Sonia Sayari: Department of Business Administration, College of Administrative and Financial Science, Saudi Electronic University, Jeddah 23442, Saudi Arabia
Amani Hamza Mohamed: Department of Marketing and Management, Hekma School of Business and Law, Dar Al Hekma University, Jeddah 22246, Saudi Arabia
Mohammed Faishal Mallick: Department of Business Administration, College of Administrative and Financial Science, Saudi Electronic University, Jeddah 23442, Saudi Arabia
Nusrat Khan: Department of Business Administration, College of Administrative and Financial Science, Saudi Electronic University, Jeddah 23442, Saudi Arabia
Asra Inkesar: Department of Business Administration, College of Administrative and Financial Science, Saudi Electronic University, Riyadh 93499, Saudi Arabia

Administrative Sciences, 2025, vol. 15, issue 5, 1-13

Abstract: Artificial intelligence (AI) is transforming the internationalisation activities of multinational corporations (MNCs) through enhanced operational efficiencies and optimised decision-making; though the moderating factors influencing its impact on export-led internationalisation remain underexplored. This research adopts a Resource-Based View (RBV) approach to examine the complex relationship between AI capabilities and the export performance of Indian MNCs, with cultural distance serving as a moderating factor, analysing how AI adoption influences export intensity, trade expansion, and market penetration strategies. Data from a 2024 survey of 449 Indian exporters across various industries, analysed using Structural Equation Modelling, reveal that AI capabilities positively impact export performance particularly in markets characterised by high institutional uncertainty and complex regulatory environments. Moreover, cultural distance acts as a significant moderator, amplifying the role of AI in navigating consumer preferences, language barriers, and localised business practices. AI-powered analytics help firms better understand foreign markets, adapt to cultural differences, and optimise international operations. This study advances the scholarly understanding and contributes to internationalisation theory by integrating AI-driven trade strategies with institutional and cultural moderating factors and offers a structured framework for corporate managers and policymakers to formulate AI-based strategic decisions that leverage AI to mitigate trade-related uncertainties, improve their compliance with international regulations, and strengthen global trade competitiveness in emerging economies.

Keywords: artificial intelligence; export strategies of MNCs; cross-border digitalisation; AI-driven global expansion; cultural distance and market entry (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2025
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