Make or buy your artificial intelligence? Complementarities in technology sourcing

Charles Hoffreumon, Chris CM Forman and Nicolas van Zeebroeck

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: We investigate firm decisions to adopt artificial intelligence (AI) technology and how adoption is sourced: by purchasing commercial readymade software, by developing or customizing solutions in-house, or both. Using a cross-sectional data set of 3143 firms from across Europe, we examine the extent to which sourcing strategies exhibit complementarity or substitution. We find that adoption of AI using readymade software as a sourcing strategy is now increasingly commonplace, but differs across industrial sectors. Further, complementarities between sourcing strategies are common across sectors, though with some differences in strength and some exceptions. Our results show that sourcing strategies play an important role in shaping AI adoption decisions among firms.

Date: 2024-03-05
New Economics Papers: this item is included in nep-ain and nep-cmp
Note: SCOPUS: ar.j
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Citations: View citations in EconPapers (5)

Published in: Journal of economics & management strategy (2024) v.33,p.452-479

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Related works:
Journal Article: Make or buy your artificial intelligence? Complementarities in technology sourcing (2024)
Working Paper: Make or Buy your Artificial Intelligence? Complementarities in Technology Sourcing (2023)
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