Generative artificial intelligence and knowledge: smart innovation orchestrators leading Chinese manufacturing firms towards innovation performance

Purpose Firms are highly dependent on digitalization of their processes and procedures through the integration of generative artificial intelligence (Gen AI). Gen AI supports digital innovation (DI), which is crucial to innovation performance (IP). The purpose of this study is to examine how Gen AI capabilities, the knowledge creation process (KCP), and DI contribute to the creation of IP. Furthermore, the paper discusses the moderating effects of human and AI (AI-HI) collaboration, top management knowledge value (TMKV), and big data knowledge management (BDKM). Design/methodology/approach Data were collected via questionnaires from managers of Chinese manufacturing firms. PLS-SEM is used for hypothesis testing. Findings The findings indicated that Gen AI capabilities and KCP are significantly associated with DI. Similarly, DI influences innovation performance, and DI mediates the relationships among Gen AI capabilities, KCP, and IP. Furthermore, AI-HI collaboration moderates between Gen AI capabilities and DI. Similarly, TMKV moderates between KCP and DI. Lastly, BDKM moderates between DI and innovation performance. Practical implications The study provides actionable insights for managers and policymakers on the surge in Gen AI capabilities in decision-making. Originality/value Based on resource orchestration theory (ROT), this research paper examines how the orchestration of digital and knowledge resources enhances performance.