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Three-wave survey demonstrates that industrial policy dependence restricts external opportunity search in Chinese firms, indicating that government support limits business model renewal.
This study examines whether dependence on AI-related industrial policy constrains AI-enabled business model renewal. AI industrial policy dependence is defined as firms’ reliance on government resources, priorities and recognition for the continuation, direction and legitimacy of AI initiatives. Interview-based construct development and two validation samples preceded a three-wave, partially multi-informant study of 430 Chinese firms. Policy dependence was associated with narrower external search, which in turn predicted less business model renewal. Customer orientation broadened search but did not weaken the dependence–search relationship. The findings show how policy resources may enable technological activity while restricting the opportunity set firms investigate.
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Li et al. (2026) studied this question.
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