The Utilisation of Artificial Intelligence in the Export Performance of MNCs: The Role of Cultural Distance
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....
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MDPI AG
2025-04-01
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| Series: | Administrative Sciences |
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| Online Access: | https://www.mdpi.com/2076-3387/15/5/160 |
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| author | Syed Khusro Chishty Sonia Sayari Amani Hamza Mohamed Mohammed Faishal Mallick Nusrat Khan Asra Inkesar |
| author_facet | Syed Khusro Chishty Sonia Sayari Amani Hamza Mohamed Mohammed Faishal Mallick Nusrat Khan Asra Inkesar |
| author_sort | Syed Khusro Chishty |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-7be13b7034a84c85b6be6e2b29ee9192 |
| institution | OA Journals |
| issn | 2076-3387 |
| language | English |
| publishDate | 2025-04-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Administrative Sciences |
| spelling | doaj-art-7be13b7034a84c85b6be6e2b29ee91922025-08-20T02:33:43ZengMDPI AGAdministrative Sciences2076-33872025-04-0115516010.3390/admsci15050160The Utilisation of Artificial Intelligence in the Export Performance of MNCs: The Role of Cultural DistanceSyed Khusro Chishty0Sonia Sayari1Amani Hamza Mohamed2Mohammed Faishal Mallick3Nusrat Khan4Asra Inkesar5Department of Business Administration, College of Administrative and Financial Science, Saudi Electronic University, Jeddah 23442, Saudi ArabiaDepartment of Business Administration, College of Administrative and Financial Science, Saudi Electronic University, Jeddah 23442, Saudi ArabiaDepartment of Marketing and Management, Hekma School of Business and Law, Dar Al Hekma University, Jeddah 22246, Saudi ArabiaDepartment of Business Administration, College of Administrative and Financial Science, Saudi Electronic University, Jeddah 23442, Saudi ArabiaDepartment of Business Administration, College of Administrative and Financial Science, Saudi Electronic University, Jeddah 23442, Saudi ArabiaDepartment of Business Administration, College of Administrative and Financial Science, Saudi Electronic University, Riyadh 93499, Saudi ArabiaArtificial 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.https://www.mdpi.com/2076-3387/15/5/160artificial intelligenceexport strategies of MNCscross-border digitalisationAI-driven global expansioncultural distance and market entry |
| spellingShingle | Syed Khusro Chishty Sonia Sayari Amani Hamza Mohamed Mohammed Faishal Mallick Nusrat Khan Asra Inkesar The Utilisation of Artificial Intelligence in the Export Performance of MNCs: The Role of Cultural Distance Administrative Sciences artificial intelligence export strategies of MNCs cross-border digitalisation AI-driven global expansion cultural distance and market entry |
| title | The Utilisation of Artificial Intelligence in the Export Performance of MNCs: The Role of Cultural Distance |
| title_full | The Utilisation of Artificial Intelligence in the Export Performance of MNCs: The Role of Cultural Distance |
| title_fullStr | The Utilisation of Artificial Intelligence in the Export Performance of MNCs: The Role of Cultural Distance |
| title_full_unstemmed | The Utilisation of Artificial Intelligence in the Export Performance of MNCs: The Role of Cultural Distance |
| title_short | The Utilisation of Artificial Intelligence in the Export Performance of MNCs: The Role of Cultural Distance |
| title_sort | utilisation of artificial intelligence in the export performance of mncs the role of cultural distance |
| topic | artificial intelligence export strategies of MNCs cross-border digitalisation AI-driven global expansion cultural distance and market entry |
| url | https://www.mdpi.com/2076-3387/15/5/160 |
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