The effect of marketing department power on investor responses to announcements of AI-embedded new product innovations

Padigar, M; Pupovac, L; Sinha, A; Srivastava, R

The effect of marketing department power on investor responses to announcements of AI-embedded new product innovations

Padigar, M

Pupovac, L Sinha, A

Srivastava, R

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Publisher:: Springer Science and Business Media LLC
Publication Type:: Journal Article
Citation:: Journal of the Academy of Marketing Science

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Field	Value	Language
dc.contributor.author	Padigar, M https://orcid.org/0000-0002-8516-5036
dc.contributor.author	Pupovac, L
dc.contributor.author	Sinha, A https://orcid.org/0000-0002-3165-4053
dc.contributor.author	Srivastava, R
dc.date.accessioned	2022-05-28T08:00:16Z
dc.date.available	2022-05-28T08:00:16Z
dc.identifier.citation	Journal of the Academy of Marketing Science
dc.identifier.issn	0092-0703
dc.identifier.issn	1552-7824
dc.identifier.uri	http://hdl.handle.net/10453/157793
dc.description.abstract	<jats:title>Abstract</jats:title><jats:p>Even as more companies integrate artificial intelligence (AI) into their new products and services, little research outlines the strategic implications of such AI adoption. Therefore, the present study investigates how investors respond to announcements of new product innovations integrated with AI by non-software firms (AI-NPIs), with the prediction that they respond favorably if the firms feature a marketing department with substantial power; such firms likely possess the marketing resources and assets needed to ensure the success of AI-NPIs. An event study with a sample of 341 announcements by 77 S&P 500 firms between 2009–2018 supports this prediction. Furthermore, the relationship between marketing department power and investor response intensifies when the announcement (1) occurs in later innovation stages, (2) involves the sourcing of external innovation assets, and (3) refers to more complex innovations. These findings have both theoretical and managerial implications.</jats:p>
dc.language	en
dc.publisher	Springer Science and Business Media LLC
dc.relation.ispartof	Journal of the Academy of Marketing Science
dc.relation.isbasedon	10.1007/s11747-022-00873-8
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	1503 Business and Management, 1505 Marketing, 1506 Tourism
dc.subject.classification	Marketing
dc.title	The effect of marketing department power on investor responses to announcements of AI-embedded new product innovations
dc.type	Journal Article
utslib.for	1503 Business and Management
utslib.for	1505 Marketing
utslib.for	1506 Tourism
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Marketing Discipline
utslib.copyright.status	open_access	*
dc.date.updated	2022-05-28T08:00:13Z
pubs.publication-status	Published online

Abstract:

AbstractEven as more companies integrate artificial intelligence (AI) into their new products and services, little research outlines the strategic implications of such AI adoption. Therefore, the present study investigates how investors respond to announcements of new product innovations integrated with AI by non-software firms (AI-NPIs), with the prediction that they respond favorably if the firms feature a marketing department with substantial power; such firms likely possess the marketing resources and assets needed to ensure the success of AI-NPIs. An event study with a sample of 341 announcements by 77 S&P 500 firms between 2009–2018 supports this prediction. Furthermore, the relationship between marketing department power and investor response intensifies when the announcement (1) occurs in later innovation stages, (2) involves the sourcing of external innovation assets, and (3) refers to more complex innovations. These findings have both theoretical and managerial implications.

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http://hdl.handle.net/10453/157793