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The Impact of AI and Innovation on MNEs’ Product Market and Financial Performance

Year: 2026

Type: article

Abstract: This study empirically examines how artificial intelligence (AI) adoption and innovation shape product market dynamics and financial performance in multinational enterprises (MNEs) using a global firm sample over 1980–2023. We construct an unbalanced panel dataset by integrating textual analysis, manual verification, and data merged from nine major databases, identifying 411 AI-classified MNEs and a matched 411 non-AI MNEs. Using panel regression models with industry and year fixed effects, we test how AI intensity (the proportion of AI-related products/assets) and R&D—individually and jointly—affect product portfolio breadth and change, market share, industry concentration (HHI), and profitability. The results show that greater AI integration is associated with higher product diversification and a stronger competitive positioning, and that the interaction of AI and R&D is particularly important for explaining market share, concentration, and profitability differences across AI and non-AI MNEs. Overall, the findings highlight the strategic value of aligning AI adoption with innovation investments to strengthen product market outcomes and financial performance in global markets.

Source: Journal of risk and financial management

DOI: 10.3390/jrfm19020124

Authors: Shumi Akhtar, Farida Akhtar, Jiongcheng Lu

Institutions: The University of Sydney, Macquarie University

Language: English

Topic: Firm Innovation and Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $1,689