Economics of Strategic Management 2025-07-21

Artificial Intelligence (AI) has revolutionized interactive marketing, creating dynamic and personalized customer experiences. To the best of our knowledge, no studies have ventured into how firms in the luxury sector can leverage AI marketing activities to innovate their business model and boost the development of future digital marketing to enhance the luxury shopping experience (LSE). Building on the existing LSE literature and adopting a business model innovation (BMI) lens, we conducted an experimental study to identify how AI-powered try-on technology (ATT) can contribute to LSEs and create customer value proxied by customer satisfaction. In addition, we determined the specific dimensions of the LSE that are most affected by AI marketing efforts. Furthermore, our findings explored the role of AI in driving BMI and the interrelationship between enhanced customer satisfaction and BMI. This research contributes to understanding the crucial role of AI in shaping the future of interactive marketing in the luxury context. Xin Song Carole Bonanni artificial intelligence, business model innovation, customer satisfaction, Shopping Experience, Luxury 2024-11-05 While geography-related factors are critical to determining the functioning of networks, prior studies have overlooked how they may shape the impact of structural holes on firm innovation. Building on structural hole theory and the industrial cluster literature, we propose that structural holes negatively influence firm innovation in industrial clusters. Such negative impact can be attributed to broker firms' social and political embeddedness in these clusters, and is thus moderated by social factors (i.e., local information density and intra-cluster partner ratio) and political factors (i.e., local government coordination and political connection importance). Our predictions receive support from a matched sample of on-site survey and secondary data from 221 firms in industrial clusters in China. This study contributes to structural hole theory by incorporating geographic factors and offers important implications for policymakers aiming to promote firm innovation. S. Shuyang You L. Wang K. Zheng Zhou L. Liangding Jia Structural holes, Innovation, Industrial clusters, Social embeddedness, Political embeddedness 2025-05 This paper investigates how climate policies affect low-carbon innovation (as measured by patents) and assesses the link between such innovation and economic activity. Climate policies, including international cooperation, spur both specific and overall innovation, with regulations, emissions-trading systems, and expenditure measures such as R&D subsidies and feed-in tariffs being particularly impactful. In turn, low-carbon innovation raises economic activity as much as other types of innovation and past technological revolutions. However, the mechanisms are different: low-carbon innovation increases capital accumulation, while other types of innovation increase total factor productivity (TFP). Hasna, Z. Hatton, H. Jaumotte, F. Kim, J. Mohaddes, K. Pienknagura, S. Low-Carbon Innovation, Growth, Climate Policies, Climate Change, Porter Hypothesis 2025-06-30 The work of knowledge brokers comprises the transfer, translation, and transformation of knowledge between individuals who are unlikely to interact efficiently because of knowledge boundaries. In an extension of this theory, algorithmic brokers are defined as individuals performing these practices with artificial intelligence (AI) output to enable a community to leverage this output in their work. However, with the introduction of large language models (LLMs), we argue this brokerage role is shifting and that LLMs have the potential to broker knowledge between humans. We conducted a case study with domain experts in a Research and Development (R&D) department of a large multinational science and technology company who regularly use a recently developed domain-specific R&D-LLM. Our preliminary findings show that the R&D-LLM is reshaping interactions between human experts through three knowledge brokerage practices of varying complexity, assisting in simple knowledge recall, enabling the approach to experts and being a simulated counterpart. Wohlschlegel, Julian Jussupow, Ekaterina Pumplun, Luisa Dittrich, Janek 2025-06 This paper investigates how climate policies affect low-carbon innovation (as measured by patents) and assesses the link between such innovation and economic activity. Climate policies, including international cooperation, spur both specific and overall innovation, with regulations, emissions-trading systems, and expenditure measures such as R&D subsidies and feed-in tariffs being particularly impactful. In turn, low-carbon innovation raises economic activity as much as other types of innovation and past technological revolutions. However, the mechanisms are different: low-carbon innovation increases capital accumulation, while other types of innovation increase total factor productivity (TFP). Zeina Hasna Henry Hatton Florence Jaumotte Jaden Kim Kamiar Mohaddes Samuel Pienknagura low-carbon innovation, growth, climate policies, climate change, Porter Hypothesis 2025-07 "Using deal-level micro data from the Dealroom database, we construct a dynamic co-investment syndication network to examine the influence of cultural proximity and geospatial proximity between investors and start-ups, as well as the network position of global VC firms on investment decisions in European-based start-ups. By applying a linear probability regression model with high-dimensional fixed effects over the period 2015-2022, we confirm that both cultural and spatial proximity significantly facilitate VC investment. Moreover, our analysis reveals that a prominent network position â characterized by how well-connected (degree centrality) and how influential (Katz centrality) within the co-investment networkâ substantially enhances VC investments on account of the facilitated sharing of information, contacts, and resources among investors. Furthermore, our findings reveal that small-world networks, characterized by high clustering coefficients, facilitate investments in distant start-ups, helping to overcome spatial constraintsâan aspect largely overlooked in the literature. Small-world syndication networks foster trust among members, complementing each other through differentiation and specialization in industrial knowledge and local markets, potentially altering risk-averse behaviour and enabling investments that transcend geographical boundaries." Zhen Ni Testa Giuseppina Compano Ramon 2025-06 This paper investigates how climate policies affect low-carbon innovation (as measured by patents) and assesses the link between such innovation and economic activity. Climate policies, including international cooperation, spur both specific and overall innovation, with regulations, emissions-trading systems, and expenditure measures such as R&D subsidies and feed-in tariffs being particularly impactful. In turn, low-carbon innovation raises economic activity as much as other types of innovation and past technological revolutions. However, the mechanisms are different: low-carbon innovation increases capital accumulation, while other types of innovation increase total factor productivity (TFP). Ms. Zeina Hasna Henry Hatton Ms. Florence Jaumotte Jaden Kim Mr. Kamiar Mohaddes Samuel Pienknagura Low-Carbon Innovation; Growth; Climate policies; Climate change; Porter Hypothesis 2025-06-27