The impact of artificial intelligence (AI) adoption on operational performance in manufacturing

Purpose The purpose of this study is to examine how AI adoption enhances operational performance in manufacturing firms and to investigate how variations in firms’ strategic focus moderate this relationship. Specifically, this study explores how AI adoption functions as a dynamic capability that enhances operational performance in manufacturing firms and investigates how different strategic orientations—exploration, exploitation, or ambidexterity—moderate this effect from the perspective of the Attention-Based View (ABV) of the firm. Design/methodology/approach This study employs a quantitative research method, using a sample of 426 Chinese manufacturing firms to examine the impact of artificial intelligence (AI) adoption on operational performance and to analyze the moderating role of firms’ strategic focus (exploration, exploitation, and ambidexterity). Data were collected through a structured questionnaire survey. To ensure the robustness of the findings and address potential endogeneity issues, hierarchical regression analysis and the two-stage least squares (2SLS) method were employed. Findings This study reveals that AI adoption significantly enhances the operational performance of manufacturing enterprises, but this effect is moderated by firms’ strategic focus. A high exploration tendency weakens the performance-enhancing effect of AI adoption due to implementation instability caused by excessive experimentation. A high exploitation tendency also reduces the positive impact of AI adoption, as over-reliance on existing processes constrains AI’s transformative potential. Furthermore, an ambidextrous strategy (coexistence of high exploration and high exploitation) further diminishes the positive effect of AI adoption, indicating that resource dispersion and increased coordination costs may offset its benefits. Originality/value From the perspective of Dynamic Capabilities Theory, this study empirically examines the impact of AI adoption—as a dynamic capability—on operational performance. Additionally, drawing on the Attention-Based View (ABV) of the firm, it uncovers the moderating role of firms’ strategic focus, addressing an existing research gap concerning strategic-level decision-making in AI adoption. The findings offer theoretical insights that guide enterprise managers in optimizing AI adoption strategies, helping them strike a balance between innovation and efficiency to maximize the benefits of digital transformation.