International Journal of Information Management 76 (2024) 102768

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International Journal of Information Management

journal homepage: www.elsevier.com/locate/ijinfomgt

Research article

The impact of artificial intelligence adoption for business-to-business

marketing on shareholder reaction: A social actor perspective
Yuanzhu Zhan a, *, Yangchun Xiong b, Runyue Han c, Hugo K.S. Lam c, Constantin Blome d
a
Birmingham Business School, University of Birmingham, UK
b
School for Business and Society, University of York, UK
c
University of Liverpool Management School, University of Liverpool, UK
d
Lancaster University Leipzig (Germany), Lancaster University, UK

A R T I C L E I N F O A B S T R A C T

Keywords: While AI applications are becoming ever more important in B2B marketing operations, there is a lack of research
AI in B2B marketing to examine whether and how shareholders react to firms’ AI-enabled B2B marketing initiatives. Accordingly, the
Industry dynamism purpose of this study is to explore this process by theoretically building on the social actor perspective of the firm
Customer complexity
and investigating the impact of AI-enabled B2B marketing initiatives on shareholder reaction measured by
Social action theory
Event study
abnormal stock returns. By adopting a propensity score matching (PSM) method to generate an artificial control
group of firms without adopting AI-enabled B2B marketing initiatives, we conduct an event study based on 174
sample firms (87 treatment firms and 87 matched control firms) publicly listed in the US between 2011 and
2020. The test results suggest that firms implementing AI for B2B marketing receive greater stock returns than
their industry peers without AI implementation. In addition, the stock return is more remarkable for firms
operating in turbulent environments and with less complex customer bases. A qualitative focus group discussion
was conducted to further complement and enrich the findings. This study provides the first empirical evidence
regarding the shareholder reaction to AI-enabled B2B marketing initiatives. The results reveal the significance of
the fit between AI-enabled B2B marketing values and firms’ business environments. It encourages future studies
to investigate AI implementation from the social actor perspective.

1. Introduction scripts "Driven by Intuition" (IBM, 2018); Barclays implemented AI to

improve and facilitate their transaction banking services through chat­
Nowadays, the adoption of emerging technologies has contributed bots (Barclays, 2019). Siemens Healthineers used AI to support clinical
substantially to firms’ capability to effectively interact and collaborate decision-making by improving customized product performance and
with their partners, overcome operational challenges, and create new reducing costly downtime (Siemens Healthineers, 2021). It has even
opportunities for growth (Vannoy & Palvia, 2010; Gupta et al., 2023; been argued that AI will considerably reshape the future of B2B mar­
Kaartemo & Nyström, 2021; Lam et al., 2019). Notably, the use of keting (Han et al., 2021; Paschen et al., 2019).
artificial intelligence (AI) in business-to-business (B2B) marketing has In spite of the notable advancements in AI development over the last
attracted increasing attention, owing to the data available from various decade, extant research remains insufficient in providing a compre­
sources, the advance in big data analytical techniques, increased hensive understanding of the optimal strategies for harvesting AI’s po­
computing power and lower costs (Dwivedi et al., 2021a; Huang & Rust, tential to drive significant impacts on B2B marketing. Particularly, most
2021; Lui et al., 2021). A recent study conducted by MIT Technology studies of AI implementations pay specific attention to its technological
Review Insights (2018) in association with Google collected data from features in the area of business-to-customer (B2C) marketing (Belanche
1419 marketing executives and identified that B2B marketing services et al., 2019; Chung et al., 2020; Kumar et al., 2019). Meanwhile,
ranked among the top fields regarding the AI adoption for innovation. although the business implications of AI-enabled B2B marketing have
For instance, Lexus adopted IBM Watson to create its B2B commercial gained importance, most of the literature only offers conceptual

* Corresponding author.
E-mail addresses: y.zhan@bham.ac.uk (Y. Zhan), chris.xiong@york.ac.uk (Y. Xiong), Runyue.Han@liverpool.ac.uk (R. Han), Hugolam@liverpool.ac.uk
(H.K.S. Lam), c.blome@lancaster.ac.uk (C. Blome).

https://doi.org/10.1016/j.ijinfomgt.2024.102768
Received 1 April 2023; Received in revised form 11 December 2023; Accepted 31 January 2024
Available online 16 February 2024
0268-4012/© 2024 The Author(s). Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
Y. Zhan et al. International Journal of Information Management 76 (2024) 102768

frameworks and qualitative discussions about its values, barriers and 2020. The findings show that firms implementing AI for B2B marketing
socio-economic impacts (Martínez-López & Casillas, 2013; Paschen receive greater stock returns than their industry peers without AI
et al., 2019; Mikalef et al., 2021; Sung, 2021). For instance, Martí­ implementation. In addition, the stock return is more remarkable for
nez-López & Casillas (2013) highlight the historical overview, current firms operating in turbulent environments and with a less complex
and future insights regarding the application of AI in industrial mar­ customer base. Then, a qualitative focus group discussion was conducted
keting. Mikalef et al. (2021) further conduct three case studies in Nor­ following the data analysis to provide a more comprehensive view of the
way that use AI for B2B marketing and identify several AI-specific complex relationships within the context of AI adoption and shareholder
micro-foundations of dynamic capabilities. In terms of quantitative reactions in B2B marketing. These results reveal the significance of the
studies of AI-enabled B2B marketing, certain research has investigated fit between AI-enabled B2B marketing values and firms’ business
the function of computer-mediated AI agents in identifying crises related environments.
to events through data mining techniques (Farrokhi et al., 2020) or This study has made several contributions. First of all, to the best of
examined the consequences and antecedents of AI-enabled B2B activ­ our knowledge, this is the first study that empirically investigates the
ities applying surveys (Baabdullah et al., 2021). Nonetheless, given the impact of AI implementation for B2B marketing on shareholder reaction,
shareholders are the owner of the company who plays important roles referred to as stock returns. The significant positive effect identified
(both direct and indirect) in companies’ operations, there is a lack of from the analysis offers empirical evidence for firms to implement AI
empirical research studying whether shareholders reward or penalize technology for better B2B marketing performance. Secondly, the anal­
firms for their AI-enabled B2B marketing initiatives. Investigating how ysis further illustrates the moderating effect of different business envi­
shareholders perceive and respond to AI-enabled B2B marketing initia­ ronments (i.e., industry dynamism and customer complexity) in
tives is critical because it directly impacts a firm’s strategic decisions, influencing the impact of AI implementation for B2B marketing. Hence,
financial health, access to resources, competitive positioning, and it provides insights for companies to consider their business environ­
overall success (Huang & Rust, 2021). This is particularly relevant in the ments to reap more value from their AI implementation for B2B mar­
B2B marketing context, where the dynamics of AI adoption may differ keting. Thirdly, this study integrates the social action theory and
significantly from consumer-focused marketing. Addressing this gap in provides a more comprehensive view to investigate whether share­
the empirical literature can provide a more comprehensive under­ holders reward or penalize firms for their AI-enabled B2B marketing
standing of the dynamics between AI investments, shareholder value, initiatives. From a social actor perspective, it explains how AI imple­
and the unique challenges and opportunities within B2B marketing. mentation for B2B marketing can enable firms to gain competitiveness
Accordingly, this study attempts to address this critical issue. via improved social identities for innovation and how the competitive­
Moreover, it is unlikely that companies operating in different busi­ ness can be further enhanced in different business environments. It is
ness environments will receive the same results from their AI adoption believed that the social actor perspective can be used as an insightful
for B2B marketing. For instance, while the use of AI for B2B may enable theoretical lens for future research in this area. It extends the existing
companies to harvest the values from fluctuating market demands and literature on AI adoption to consider the social attributes of technolog­
changing consumer needs to gain a competitive edge (Soel & Muhanna, ical artefacts in the approach through which prescribed information
2009; Lui et al., 2021; Wamba, 2022), companies operating in less tur­ technologies are transformed into ’information technologies-in-use’
bulent environments may receive fewer business opportunities in (Cunha & Carugati, 2011; Orlikowski, 2010).
adopting AI for innovation. Also, companies with a more complex
customer base may experience higher uncertainty and rely more on AI 2. Literature review and hypothesis development
implementation to gain competitive advantages by meeting the de­
mands arising from the markets (Prentice & Weaven, & Wong, 2020; 2.1. Exploring AI in B2B marketing through a social actor perspective
Schmitz & Ganesan, 2014). In this way, apart from investigating
whether shareholders reward or penalize firms for their AI-enabled B2B AI has generated increasing interest in future work discussions and is
marketing initiatives, it is important to further explore how share­ considered the next frontier for innovation, competition, and produc­
holders’ reaction differs across companies operating in various business tivity (McKinsey, 2020; Dwivedi et al., 2021b; Hradecky et al., 2022).
environments. This leads to our research question: Considering the socio-technical nature of AI and the truth that actions
are conducted in an organizational and social context, this study argues
How does the adoption of AI in B2B marketing initiatives impact
that the AI implementation for B2B marketing can be seen as social
shareholder reactions, and to what extent do these impacts vary
actions, i.e., meaningful activities for organizations and associated with
across different business environments?
and are affected by the activities of others (Hedström et al., 2013; Kling
We applied a social actor perspective to address the research ques­ & Lamb, 1999). For example, AI-based techniques used in B2B mar­
tion. Although most of the studies focusing on the role of AI imple­ keting can be referred to as a series of tools and resources for facilitating
mentation in B2B marketing have referred AI as a technique for firms’ leadership-generated communications and employee interactions
problem-solving, this study investigates the symbolic nature of AI to affect shareholders’ perceptions. Although research has led to theo­
implementation for B2B marketing and its social impacts. This study retical models (Ngwenyama & Lyytinen, 1997; Vannoy & Palvia, 2010;
argues that the focal firm of AI implementation in B2B marketing can be Van Osch & Coursaris, 2017), more remains to be conducted on inves­
considered as a social actor who takes actions purposefully and inten­ tigating and theorizing the social traits of AI implementation for B2B
tionally (Whetten & Mackey, 2002). Viewing the relationship between marketing. In other words, the issue remains unaddressed as to what
AI-enabled B2B marketing and shareholder reaction from a social actor extent AI-enabled B2B marketing will affect shareholders’ perceptions.
perspective reveals how firms use AI as an effective way to enhance their Although some recent studies have suggested a positive relationship
legitimacy of social identity and be a symbol to improve stakeholders’ between the adoption of emerging technologies and firms’ overall per­
confidence. Mainly, this research addresses a significant gap in the formance (Sheel & Nath, 2019; Lam et al., 2019; Wamba et al., 2017),
literature by studying the effect of AI adoption for B2B marketing on research about the social impact of AI adoption for B2B marketing is still
shareholder reaction, which is measured by stock returns. The measure in its infancy.
of stock returns can be referred to as a proxy for general market value Consistent with the existing literature, this study identifies the
and represents the full performance effect due to AI Adoption. This study metatheoretical underpinnings that form the basis for conceiving an
performs an event study based on 174 sample firms (87 treatment firms organization in the role of a social actor. According to King et al. (2010),
and 87 matched control firms) regarding AI implementation for B2B social actors are organizations which identifiable due to how they are
marketing made by the US publicly listed companies between 2011 and interpreted and perceived by others. This point of view is different from

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conventional perspectives, which generally refer to the focal firm as (Schimmelfennig, 2002). Thus, the focus of AI implementation for B2B
structurally distinctive but essentially rooted in the market or in com­ marketing is on how firms should deliver this information to impress
munities of organizations (Van Osch & Coursaris, 2017). The social actor their shareholders and support their daily operations. According to
perspective posits that organizations within a social context actively Cunha and Carugati (2011), performance is a social behavior where the
engage in roles and behaviors influenced by their perceptions, in­ objective is acceptance from the audience via thoughtfully performed
teractions, and social norms (Whetten & Mackey, 2002). In the context activities that interpret, if successful, a well-defined self-image.
of our study, this perspective informs our examination of how share­ To better understand how shareholders react to AI implementation
holders perceive and respond to organizations’ adoption of AI in B2B for B2B marketing, it is crucial to acknowledge the meanings individuals
marketing initiatives. Notably, this study applies Goffman’s dramatur­ place on AI. Consistent with recent B2B marketing literature (Baabdul­
gical theory of social action - it perceives social life as a stage on which lah et al., 2021; Bag et al., 2021; Borges et al., 2021a, 2021b; Huang &
individuals play various roles of performers, attempting to impress their Rust, 2021), this study argues that firms’ AI implementation for B2B
target audience through their actions (Goffman, 1970; Schimmelfennig, marketing projects two interrelated messages to shareholders: a symbol
2002). Goffman’s dramaturgical theory complements the social actor for a more significant managerial influence and a higher likelihood for
perspective by framing social interactions as performances on a meta­ achieving long-term competitiveness. Specifically, Sowa et al. (2021)
phorical stage. It emphasizes the idea that organizations strategically found that AI implementation is often seen as a social status symbol,
manage their public image and actions to shape perceptions (Schim­ especially among professionals, to represent a tremendous managerial
melfennig, 2002). In our study, we apply this theory to explore how influence. For example, the existing literature has well-documented how
organizations strategically communicate and present their AI-enabled AI can support organizations’ decision-making by analysing data from
B2B marketing initiatives to shareholders, recognizing that these pre­ various sources (Jarrahi, 2018; Shrestha et al., 2019; Farrokhi et al.,
sentations are, in essence, performative acts that can influence share­ 2020; Dwivedi et al., 2021b). Also, studies such as Davenport and
holder reactions. Ronanki (2018) and Sowa et al. (2021) refer to AI as a managerial tool to
Together, these theoretical foundations guide our research by support fields where humans have shortcomings and help broaden
providing a framework for understanding the dynamics of AI adoption, cognitive limitations. This is in line with the information systems liter­
shareholder perceptions, and the organizational business contexts. They ature, which suggests a tool metaphor – the use of appropriate tools will
allow us to delve into the complex interplay between actors, roles, and result in more significant managerial impacts and business performance
business conditions within the context of B2B marketing, ultimately (Leonard-Barton & Deschamps, 1988; Benbya et al., 2019).
contributing to a deeper comprehension of the impact of AI adoption on Moreover, beyond the technical nature of AI, its implementation for
shareholder reactions. This study theorizes that the focal firm’s AI B2B marketing can also be considered a symbol of firms’ long-term
implementation for B2B marketing can be seen as an action delivered by competitiveness. Studies suggest that AI implementation for B2B will
the firm (i.e., performer) to present its IT proficiency and future business lead to great competitive gains, and the expenditures are just temporary
opportunities to its shareholders (i.e., audience). Following this logic, (Kumar et al., 2019; Han et al., 2021; Saura et al., 2021). Therefore,
adopting the social actor perspective to explain how AI implementation shareholders may view AI implementation for B2B marketing as a pos­
for B2B marketing presents their underlying capabilities or compe­ itive social symbol for firms. Additionally, world-leading companies
tencies to shareholders, affecting shareholders’ perception and influ­ such as Apple, Autodesk, Amazon and FedEx have successfully imple­
encing the firm’s market value. In addition, this study further argues mented AI as part of their B2B marketing for automating business op­
that the shareholders’ reaction to the implementation of AI for B2B erations (Forbes, 2020). These anecdotal evidences further project a
marketing relies on different business conditions, such as the charac­ positive image of the firm to shareholders while allowing them to have
teristics of firms’ industry type (i.e., industry dynamism) and opera­ high expectations of AI implementation for B2B marketing. As a result,
tional environments (i.e., customer complexity). In this way, it offers an since the implementation of AI for B2B marketing creates a good social
insightful lens for situating firms in a broader social landscape and image of the firms with a more significant managerial influence and a
investigating the relationships between their AI-enabled B2B marketing higher likelihood of long-term competitiveness, shareholders may
and shareholder reaction in different environments. The conceptual consider them attractive and pay particular attention to selecting these
model of this study is illustrated in Fig. 1. firms’ stocks. Nonetheless, it is worth noting that many other companies
such as IBM’s Watson, despite its early promise, faced substantial
challenges in healthcare applications, particularly in medical di­
2.2. Hypothesis development
agnostics (Lohr, 2021). The difficulties in accurately processing complex
medical data led to questions about its practical utility and return on
The theorization of AI implementation as valuable techniques for
investment. These examples collectively show that AI can offer signifi­
B2B marketing activities in organizational contexts is supported by
cant benefits in B2B marketing, but its implementation is not without
Habermas’ theory of social action (Habermas, 85, 2001), which iden­
risks and challenges that can impact a firm’s reputation and shareholder
tifies a range of social tools and resources required for individuals to
perception.
perform their everyday work. Specifically, this study uses a dramatur­
To measure firms’ competitive edge, the existing literature has
gical view and defines the AI implementation for B2B marketing as a
applied various performance indicators such as business profitability,
theatrical performance through which firms present themselves to their
market growth, and operations efficiency (Morgan & Rego, 2006; Bag
shareholders according to the social values, rules, and expectations
et al., 2021). In this study, we have chosen to measure shareholder re­
action through abnormal stock returns, a pivotal financial metric that
Industry Dynamism captures the direct impact of specific firm-level initiatives on share­
H2 (+)
holder value (Fama, 1970). The rationale behind using abnormal stock
returns, as computed via the event study method detailed in Section 3,
AI for B2B Marketing
H1 (+) Shareholder Reaction lies in their ability to reflect the immediate market reaction to a firm’s
via Stock Return
strategic decisions. Unlike traditional performance metrics, abnormal
stock returns provide a real-time indicator of investor sentiment and
H3a (+) H3b (-)
expectations. They represent the difference in stock returns between
Customer Complexity firms that adopt AI for B2B marketing and their non-adopting industry
peers, offering a more direct and quantifiable measure of competitive
Fig. 1. Conceptual model. gains as conceptualized in the literature. This metric is particularly

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useful in our study as it captures the market’s response to AI adoption in turbulent environments and with an externally focused strategy. From a
a timely and specific manner, aligning with our focus on understanding social actor perspective, although unstable business environments might
the immediate impact of such technological advancements on share­ need firms to provide frequent modification of their internal operations
holder perception and firm valuation. Thus, we propose the first and create technological constraints, AI implementation for B2B mar­
hypothesis: keting in such environments enables the firm to erect a good corporate
image and social identity (of firms’ strong digital power for innovation),
H1. Shareholders react positively to the announcement of AI imple­
which weakens the improvised IT support required for implementing AI
mentation for B2B Marketing.
for B2B marketing. This is consistent with the findings from Stoel and
Muhanna (2009) about externally focused IT. Thus, it is believed that
2.3. The moderating effect of industry and operational environments the effectiveness of AI implementation for B2B marketing will be more
prominent for firms in turbulent environments as it allows firms to
Although the study expects shareholders react positively (via better respond to market opportunities through data-driven activities
abnormal stock returns) to the announcement of AI implementation for and timely react to the changes in customer and supplier demand. We
B2B marketing, the extent to which the shareholders’ reaction can be hypothesize the following:
incremented may differ across firms in different business environments.
H2. Shareholders of firms in a more dynamic industry environment
From a social actor’s view, the effectiveness of the announcement
react more positively to the announcement of AI implementation for B2B
regarding firms’ AI implementation for B2B marketing is based on the
marketing.
external social environments (Habermas, 1984; King et al., 2010).
Recent research has illustrated how the application and adoption of Customer complexity can be seen as the level at which marketing
emerging technologies in firms to study human behavior in different managers have to react to a wide range of customer demands and
organizational settings (Vannoy & Palvia, 2010; Li & Li, 2014; Kaartemo personnel involved with different purchasing processes in conducting
& Nyström, 2021). Nevertheless, the social action literature has their businesses (Schmitz & Ganesan, 2014). While industry dynamism
committed little attention to investigating the moderating role of busi­ measures the degrees of firms’ external environment for AI imple­
ness environments on firms’ technology adoption effectiveness. mentation in B2B marketing, customer complexity indicates a more
Accordingly, this study considers the business environment a significant complicated business condition. Specifically, it may generate two
factor in exploring the shareholders’ reaction to AI implementation for opposite effects on the relationship between firms’ AI implementation
B2B marketing. In particular, this study examines how the business for B2B marketing and shareholder reaction. This is in line with the
environment in terms of firms’ industry dynamism and customer existing literature, which also suggested mixed findings regarding the
complexity may influence the effectiveness of the AI implementation for role of complexity (e.g., Skaggs & Huffman, 2003; Bozarth et al., 2009;
B2B marketing in increasing/mitigating firms’ abnormal stock returns. Schmitz & Ganesan, 2014). For instance, Skaggs and Huffman (2003)
Industry dynamism refers to the instability of firms’ business envi­ suggested that the performance of firms’ service adaptability improves
ronment (Stoel & Muhanna, 2009; Lam et al., 2019). Typically, dynamic in complex environments, while Bozarth et al. (2009) found that supply
industries are featured by perceived technological uncertainty, unpre­ chain complexity weakens firms’ plant-level performance.
dictable customer requirements, changeable market demand and un­ On the one hand, existing B2B literature has presented that various
stable political conditions (Henderson et al., 2006). It is believed that customer needs result from growth in the omnichannel environment,
such a turbulent business environment can cause firms’ AI imple­ such as growing expectations for customized services and items, higher
mentation for B2B marketing to become a more effective social symbol diversity among consumers, and a more significant number and more
to shareholders and thus increasing stock returns. For example, the diversity of customer personnel involved in buying centers (Skaggs &
technology sector is rapidly evolving and NVIDIA - originally known for Huffman, 2003; Bozarth et al., 2009). In such complex customer situa­
graphics processing units - has become a leader in AI technology. When tions, firms are more likely to behave proactively to impress their
NVIDIA announced further investments in AI for B2B marketing, shareholders through exploring new markets, improving customer
shareholders reacted positively, recognizing that NVIDIA’s enhanced AI experience and conducting product and service innovation. Specifically,
capabilities would not only improve their marketing efficiency but also AI implementation for B2B marketing can enhance innovation effec­
showcase their AI prowess to other businesses in the tech sector, tively by increasing firms’ lead generation capabilities while eliminating
potentially leading to more B2B collaborations (Fender, 2021). This is the costs and manufacturing limitations across the entire new product
aligned with studies (e.g., Karasek & Bryant, 2012; Lam, 2018) that development process (Paschen et al., 2019). Also, AI implementation for
suggest the signal effect will be most vital when the market uncertainty B2B marketing enables powerful personalization without additional
is most remarkable. This is because firms’ turbulent environment in­ changes to its operations, consequently improving consumers’ perceived
creases uncertainty and information asymmetry between shareholders values and willingness to pay more for the products or services (Chung
and firms, making it more difficult for the shareholders to understand et al., 2020; Prentice & Nguyen, 2020). Therefore, the adoption of AI for
the firms’ ongoing business and associate with the firms’ future value. In B2B marketing can support firms to meet the needs emerging from their
this way, shareholders are more likely to rely on other notable symbols, customers and convey a positive social image of the firm – capable of
such as the activity of AI implementation for B2B marketing, making it a innovating and gaining competitiveness over their competitors. In this
more effective way to reduce the shareholders’ uncertainty about the way, customer complexity is expected to positively affect the existing
firms’ future business, improving investors’ confidence, and therefore relationship between firms’ AI implementation for B2B marketing and
increasing firms’ market value via stock returns. As a result, it is argued shareholder reaction. It is suggested that shareholders of firms with
that the higher the instability of firms’ business environment, the greater more complex customer bases may react more positively to the
the uncertainty and information asymmetry levels between shareholders announcement of AI implementation for B2B marketing. Therefore, we
and firms, and hence the higher the shareholders’ reward for AI-enabled hypothesize the following:
B2B marketing initiatives.
H3a. Shareholders of firms with more complex customer bases react
In addition, firm performance in environments where business op­
more positively to the announcement of AI implementation for B2B
portunities can be very short-lived and threats may occur unexpectedly
marketing.
tends to be defined based on its capability to deal with the changes and
react swiftly (Bozarth et al., 2009; Mikalef et al., 2021). Wamba et al. On the other hand, while shareholders are unsure about the under­
(2017) identify the values generated from advanced analytics and lying business operations in turbulent environments, customer
technology adoptions appeared to be most significant for firms in complexity can make them more skeptical about the potential outcomes.

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This is because AI implementation for B2B marketing normally requires 4. Study one: quantitative analysis
significant investments and with great uncertainty, while its payback
time and expected value are hard to evaluate (Martínez-López & Casil­ To test the hypotheses, we follow the approaches suggested by pre­
las, 2013; Lui et al., 2021). Despite the tremendous advantages AI could vious studies (Faramarzi & Bhattacharya, 2021; Monfort et al., 2021)
bring to change daily operations in B2B marketing, studies generally and adopt the Factiva database to search and identify firms that have
show that the current state of AI technology does not yet live up to its implemented AI-enabled B2B marketing initiatives. However, a critical
promise (Davenport & Ronanki, 2018; Kumar et al., 2019). Additionally, issue is that the firms’ AI-enabled B2B marketing initiatives do not occur
firms tend to make extra effort to identify sophisticated, diverse randomly, resulting in a possible selection bias and endogeneity
customer preferences, manage intra- and inter-customer expectations concern. To eliminate this selection bias, we capture the counterfactual
and deliver personalized products and services (Schmitz & Ganesan, announcements regarding AI-enabled B2B marketing initiatives. Spe­
2014; Lam et al., 2019). Such demand uncertainty further increases cifically, this study employs propensity score matching (PSM) to match
firms’ capital expenses and brings down their future cash flow. In other each treatment firm (i.e., the AI-enabled B2B marketing adopting firm)
words, implementing AI for B2B marketing in high customer complexity to a control firm which had a similar probability of implementing AI for
environments may project a negative social image of firms and convey a B2B marketing initiatives as the treatment firm but eventually did not do
high level of uncertainty and risk to their shareholders. In this way, so. After identifying the treatment and matched control firms, we use the
shareholders may assume that the firms operating with high customer event study method to calculate the abnormal stock returns and consider
complexity to implement AI for B2B marketing are financially unfa­ it the dependent variable. Then, we construct a regression model to test
vorable in the short term and might not invest in these firms. Accord­ whether AI-enabled B2B marketing initiatives can positively affect
ingly, shareholders of firms with more complex customer bases may firms’ abnormal stock returns and whether this positive impact is
react less positively to the announcement of AI implementation for B2B contingent on the levels of industry dynamism and customer complexity.
marketing. The above discussion indicates two conflicting roles of
customer complexity in the opposite directions. Accordingly, we make 4.1. Data collection and sample firms
another hypothesis regarding the role of customer complexity:
This study identifies the sample firms by searching the announce­
H3b. Shareholders of firms with more complex customer bases react
ments of firms implementing AI for B2B marketing via Factiva, a data­
less positively to the announcement of AI implementation for B2B
base collecting all major real-time news wires and information articles
marketing.
worldwide such as The Financial Times and The Wall Street Journal. The
keywords used for the search included the combination of a stock market
3. Methodology
index (e.g., Nasdaq and NYSE), terms related to AI technology (e.g.,
artificial intelligence, algorithm, automation, and machine learning),
In this study, we adopted a comprehensive two-step approach to
and terms related to B2B marketing (e.g., enterprise customer, corporate
investigate the impact of AI adoption for B2B Marketing on shareholder
client, business to business, and marketing). These searching terms are
reaction. Firstly, we conducted a quantitative analysis to test the hy­
the key "classifiers" identified from the previous literature regarding the
potheses developed based on a thorough review of the literature.
use of AI technology in B2B marketing (Borges et al., 2021a, 2021b; Lui
Employing a propensity score matching (PSM) method, we generated an
et al., 2021). The research is limited to a ten-year period from 2011 to
artificial control group of firms that had not adopted AI-enabled B2B
2020. This is because AI-enabled B2B marketing has emerged as a
marketing initiatives. Subsequently, we performed an event study using
relatively new phenomenon in recent years. Consequently, a significant
a dataset comprising 174 sample firms, consisting of 87 treatment firms
challenge in conducting this study arises from the necessity to secure a
(those implementing AI for B2B marketing) and 87 matched control
substantial number of announcements for subsequent data analysis.
firms, all of which were publicly listed in the United States between
Therefore, this study endeavored to span an extended period (i.e., 2011
2011 and 2020. Secondly, to further enrich our understanding and
to 2020) to meticulously identify all accessible announcements related
complement the quantitative findings, we collected qualitative data
to AI-enabled B2B marketing in Factiva. We critically check through all
through a carefully conducted focus group study (Morgan, 1996). The
the announcements collected, and only retain those specifically
qualitative phase encompassed in-depth discussions with two distinct
mentioning adopting AI in marketing functions for business customers
groups of participants: senior managers representing firms at various
rather than using AI for other purposes and individual customers. If
stages of AI adoption for B2B marketing, and key investors and share­
there are multiple reports of the same announcements in Factiva, only
holders holding stakes in these firms. These discussions were designed to
the earliest report date is captured as the event date of the announce­
explore the underlying reasons, motivations, and contextual nuances
ments. This is because stock markets should react (if any) when infor­
behind the quantitative results. The focus group transcripts were sub­
mation about the event is made available to the markets for the first time
jected to rigorous analysis to identify recurring themes, patterns, and
(Ding et al., 2018). This screening process results in a final sample of 89
insights relevant to each of the hypotheses.
announcements of AI-enabled B2B marketing initiatives from 2011 to
By adopting this mixed-methods approach, our study aims to provide
2020. Some examples of the announcements are excerpted below:
a more comprehensive and holistic perspective on the phenomenon
under investigation (Shi et al., 2020). This two-step methodology not
• Baidu, the leading Chinese Internet search provider, leveraged AI
only validates our quantitative findings but also uncovers the qualitative
technology to help its enterprise customers to enhance their adver­
intricacies that shed light on the "why" behind the observed reactions
tise performance prediction and thus increase advertising revenues.
(Cyr, 2016). By integrating both quantitative and qualitative analyses,
• MasterCard employed AI-assisted marketing and sales software to
our research offers deeper insights into the multifaceted factors influ­
offer smaller merchants real-time, analytics-based market insights on
encing shareholder reactions to AI adoption in B2B marketing, including
revenue, market share, customer demographics and competitors in a
the role of industry dynamics and the complexities of customer bases.
particular location and across multiple locations.
This comprehensive approach enhances our understanding of the com­
• Rocket Fuel, a leading programmatic media-buying platform pro­
plex interplay between AI adoption and shareholder sentiment in the
vider, uses artificial intelligence for its enterprise marketer to
B2B marketing context. The following sections will explain the research
improve marketing ROI.
methods in detail.
• US Bank adopted AI-based automation services for its enterprise
clients to simplify their business-to-business payments and improve
payment processing routines.

5
Y. Zhan et al. International Journal of Information Management 76 (2024) 102768

• Visa Inc. introduced an artificial intelligence platform to increase contrast, a high level of marketing efficiency and debt ratio can decrease
automation, convenience and security for the B2B transactions of firms’ motivation to implement AI-enabled B2B marketing initiatives
small to medium-sized business clients. due to unnecessary resources investment and financial constraints (Lui
et al., 2016; Singh & Faircloth, 2005). Particularly, by obtaining finan­
After the data collection, panel A of Table 1 presents the character­ cial and accounting data from Compustat, we measure various control
istics of the sample firms. For instance, the mean of the sample firms’ net variables, as shown in Table 3, such as marketing efficiency (Modi &
income and total assets are $3292.382 million and $ 139,398 million, Mishra, 2011), firm debt (Eriotis et al., 2007), firm profitability (Appio
respectively. At the same time, the mean of sales, total liabilities and et al., 2019), firm size (Parker & Ameen, 2018), firm liquidity (Eriotis
employee number of the sample firms are $ 24,361.830 million, $ et al., 2007), firm financial slack (Lui et al., 2016) and R&D intensity
11,933.500 million, and 66,487, respectively. Panel B and C of Table 1 (Guldiken & Darendeli, 2016).
show the distribution of the sample firms by industry (via its two-digit After performing the binary logistic regression model, we acquire the
SIC codes) and year. It illustrates that AI-enabled B2B marketing activ­ propensity score, which indicates the probability of implementing AI-
ities are most popular in the services industry (i.e., SIC 70–89), which enabled B2B marketing initiatives for all firms included in the model.
takes 56.18% of the total sample. The distribution panel shows that most Then, we use a nearest-neighbor one-on-one matching method to iden­
of the firms only started using AI for their B2B marketing practices tify the control firms. To improve the matching quality, we set a pre­
during 2016–2020, with 2017 as the peak year. determined caliper of 0.02, which measures the absolute distance
between the control and treatment firms’ propensity scores (Ye et al.,
2020). As shown in Model 1 (pre-match model) of Table 2, the number
4.2. Matching firm selection
of firms included in the regression model is 1423, consisting of 89

This study uses propensity score matching (PSM) to identify firms

without adopting AI-enabled B2B marketing initiatives (i.e., matched Table 2
Logistic Regression Results.
control firm group) but have very similar probabilities as our sample
firms to implement AI-enabled B2B marketing initiatives. PSM has been Independent Variable Model 1 (Pre-Match) Model 2 (Post-Match)
widely used in marketing research (e.g., Liu et al., 2019) and to study the Intercept -4.462 *** (− 10.14) -0.826(− 1.417)
adoption of emerging technologies (e.g., Lui et al., 2016). To implement Marketing Efficiency -0.697 *(− 1.701) -0.233(− 0.967)
PSM, we first construct a binary logistic regression model with a dummy Firm Debt -0.387 (− 0.601) -0.057(− 0.058)
Firm Profitability 0.439(0.842) -0.163(− 0.470)
dependent variable indicating whether the firm has undertaken
Firm Size 0.471 *** (8.150) -0.019(− 0.234)
AI-enabled B2B marketing initiatives (i.e., coded as 1) or not (i.e., coded Firm Liquidity 0.276 **(2.406) 0.355(1.541)
as 0) between 2011 to 2020. Marketing efficiency, firm debt, profit­ Financial Slack 0.233(0.388) 0.489 (0.801)
ability, size, liquidity, financial slack, and R&D intensity are included in R&D Intensity 2.236 **(2.398) 0.107(0.083)
Control Firms 1334 87
the logistic regression model as independent variables. This is because
Treatment Firms 89 87
the firms with a high level of firm profitability, large firm size, high level Log Likelihood -426.663 -117.137
of firm liquidity, high level of slack resources, and high level of R&D Pseudo-R2 0.107 0.029
intensity tend to have more resources and related infrastructure to
Notes: *p < 0.1, **p < 0.05, and ***p < 0.01 (two-tailed tests). z-statistics are
support AI-enabled B2B marketing initiatives and thus are more likely to
in parentheses.
undertake these initiatives (Matzler et al., 2015; Zuo et al., 2019). In

Table 1
Descriptive Statistics of Sample Firms.
Panel A: Characteristics of Sample Firms
Variable Unit Mean Standard Deviation Min Max
Net Income Millions (USD) 3292.382 6027.965 -546.494 32,474.000
Total Assets Millions (USD) 139,398.000 393,777.900 23.944 2,622,532.000
Sales Millions (USD) 24,361.830 46,033.770 18.956 280,522.000
Total Liabilities Millions (USD) 11,933.500 352,735.700 10.226 2,366,017.000
Number of Employees Thousands 66.487 118.775 0.042 798.000

Panel B: Distribution of Samples Across Industries

Industry 2-Digit SIC Codes Frequency Percentage
Services 70-89 50 56.180%
Finance, Insurance, & Real Estate 60-67 19 21.348%
Manufacturing 20-39 7 7.865%
Retail Trade 52-59 7 7.865%
Transportation & Public Utilities 40-49 4 4.494%
Wholesale Trade 50-51 2 2.247%
Total 89 100%

Panel C: Distribution of Samples Across Year

2011 3 3.371%
2012 2 2.247%
2013 5 5.618%
2014 3 3.371%
2015 4 4.494%
2016 12 13.483%
2017 25 28.090%
2018 9 10.112%
2019 15 16.854%
2020 11 12.360%
Total 89 100%

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Y. Zhan et al. International Journal of Information Management 76 (2024) 102768

treatment firms collected from Factiva, 1334 potential control firms Table 3
with the same 4-digit SIC codes as the treatment firms. 87 out of the 89 Variable Measurements.
treatment firms are matched successfully through the above-mentioned Variable Measurement Reference Data
matching procedures and criteria. Therefore, the total sample size for Source
this research reached 174, including 87 treatment firms and 87 matched Dependent
control firms. Model 1 shows that the coefficients of marketing effi­ Variable
ciency are negatively significant, while the coefficients of firm size, CAR The sum of abnormal stock Eilert et al. CRSP
liquidity and R&D intensity are positively significant. This result in­ return (AR) over the event (2017)
window based on Fama-
dicates that firms with lower marketing efficiency, larger firm size, French Three factors model.
higher firm liquidity and greater R&D intensity tend to be more likely to Independent
employ AI technology for their B2B marketing practices. Also, we Variables
further check the matching quality by comparing the results of AI-enabled B2B Dummy variable based on Xiong et al. Press
Marketing whether the company has (2021) Release
pre-match and post-match logistic regressions. As shown in Model 2
implemented AI-enabled B2B
(post-match model) in Table 2, there are no statistically significant marketing or not.
predictors, thus indicating a satisfying matching quality is achieved. Industry Industry sales are regressed on Jacobs et al. Compustat
Dynamism year (according to five years (2015)
before the event year) to
4.3. Variables measurement and model obtain standard error, which is
divided by the mean of
We developed a cross-sectional regression model with the CARs as industry sales.
Customer The number of focal Bozarth et al. Bloomberg
the dependent variable to test our proposed hypotheses. The regression
Complexity company’s business customers (2019)
model is presented as Eq. (1). The β1 determines whether the stock (log-transformed).
market reacts differently for the firms with and without AI-enabled B2B Control
marketing initiatives (H1). β2 and β3 indicate how this impact is Variables
contingent on different levels of industry dynamism (H2) and customer Marketing The ratio of Sales-to- selling, Modi and Compustat
Efficiency general, and administrative Mishra (2011)
complexity (H3). The measurements of the variables included in the
expenses (SGA) minus mean
regression model are summarized in Table 3 and discussed below. industry Sales-to-SGA, and
divided by the standard
CARi = β0 + β1AI-enabled B2B Marketingi + β2AI-enabled B2B Marketingi × deviation of industry Sales-to-
Industry Dynamismi + β3AI-enabled B2B Marketingi × Customer Complexityi SGA.
+ β4Industry Dynamismi + β5Customer Complexityi + β6Marketing Effi­ Firm Debt A company’s total liabilities Eriotis et al. Compustat
ciencyi + β7Firm Debti + β8Firm Profitabilityi + β9Firm Sizei + β10Firm divided by total assets. (2007)
Firm A company’s return on asset Appio et al. Compustat
Liquidityi + β11Firm Financial Slacki + β12R&D Intensityi + β13Firm Repu­ Profitability (ROA) ratio, calculated as "net (2019)
tationi + β14Goods or Servicesi + β15Time Trendi (1) income divided by total
assets".
CAR. Our dependent variable is shareholder reaction measured by Firm Size A company’s total number of Parker and Compustat
the firm’s abnormal stock returns estimated from a standard event study employees (log-transformed). Ameen (2018)
method (Eilert et al., 2017). The event study methodology quantifies the Firm Liquidity A company’s current assets Eriotis et al. Compustat
divided by current liabilities. (2007)
impact of AI-enabled B2B marketing initiatives by examining abnormal
Firm Financial A company’s current assets Lui et al. Compustat
stock returns. The abnormal stock returns were computed as the dif­ Slack divided by total assets. (2016)
ference between the actual stock return associated with the occurrence R&D Intensity A company’s R&D expense Guldiken and Compustat
of an event and the expected stock return in the hypothetical scenario divided by total sales. Darendeli
where the event did not occur (Ding et al., 2018). Specifically, within the (2016)
Firm Dummy variable based on Beckers et al. Fortune
context of our research, the abnormal stock return represents the dif­ Reputation whether a company is (2018)
ference between the actual stock return when a firm announces an included in America’s Most
AI-enabled B2B marketing initiative and the expected stock return under Admired Companies list.
the assumption that the firm did not engage in such AI-enabled B2B Goods or Dummy variable based on Beckers et al. Compustat
Services companies’ two-digit SIC code (2018)
marketing. Eq. (2) subsequently illustrates how the abnormal stock re­
distinguishing companies
turn (AR) is calculated. primarily operating in goods
or services setting (SIC 70-89).
ARit = Rit -E(Rit) (2) Time Trend Assigning an integer number Luffarelli and Press
between 1 and 10 to a firm Awaysheh Release
where Rit is the daily stock return of firm i on day t, E(Rit) signifies the depending on the (2018)
expected stock return of firm i on day t, and ARit represents the announcement year (i.e.,
abnormal stock return of firm i on day t. 2011 =1, 2012 =2, …
It should be noted that only a firm’s actual stock return can be 2020 =10).

calculated directly using its actual stock price, while the expected stock
return can only be estimated. To estimate the expected stock return, we SMBt equates to the size risk that accounts for the return of publicly-
employed the Fama-French three-factor model over a period of 210 traded companies on the small minus-big portfolio. HMLt accounts for
days, ending 11 days prior to the event date (Eilert et al., 2017). Addi­ the return of publicly-traded companies on the high-minus-low
tionally, we require that a firm must have a minimum of 50 days of stock portfolio.
returns data during this estimation period. Eq. (3) below illustrates how Finally, consistent with previous studies (Jacobs, 2014; Hendricks &
the expected stock return is estimated. We obtained the firm’s daily Singhal, 2003), we use a two-day event window (i.e., one day before the
stock returns and the Fama French Three Factors data, utilized to event day and the event day) to calculate the cumulative abnormal
calculate expected stock returns, from the CRSP database. returns (CAR) by summing the individual abnormal returns across this
E(Rit) = αi + βiRMt + γiSMBt + δiHMLt (3) event window, to better capture the overall stock market reaction to the
event and keep provision for any information leakage before the event
Where RMt denotes the equal-weighted market return on day t, and

7
Y. Zhan et al. International Journal of Information Management 76 (2024) 102768

day.

1.000
6.908
2.284
(14)
4.3.1. AI-enabled B2B marketing
We measure AI-enabled B2B marketing as a dummy variable, indi­

1.000
0.046
0.511
0.501
cating whether the firms included in the regression model have imple­

(13)
mented AI for B2B marketing purposes. Specifically, treatment firms (i.
e., firms with AI-enabled B2B marketing announcements) are coded as 1,

0.200 * **
and matched control firms (i.e., firms without such announcements) are

0.172 * *
coded as 0. We relied on the AI-enabled B2B marketing announcements

1.000

0.157
0.365
(12)
to identify our treatment firms. Matched control firms are identified
using the previously mentioned PSM method. This measure allows us to
compare the stock returns of these two groups (i.e., treatment firms and

-0.339 * **
matched control firms) in terms of adopting AI-enabled B2B marketing.

-0.078

-0.009
1.000

0.101
0.195
(11)
4.3.2. Industry dynamism
Following the study of Jacobs and Singhal (2014), we measure in­

-0.198 * **
0.297 * **
dustry dynamism by regressing industry sales (four-digit SIC codes) on

-0.018

-0.007
1.000

0.446
0.195
year (according to five years before the event year) to obtain standard

(10)
error, which is divided by the mean of industry sales. Based on this
estimation, a higher standard error indicates that actual industry sales

0.347 * **
deviate more widely from predictions, implying greater unpredictability

-0.029
-0.099
-0.070
and higher dynamism for overall market demands. Moreover, normal­

1.000

0.048

1.581
0.793
(9)
izing this standard error by the mean of industry sales (i.e., standard
error divided by the mean of industry sales) scales the measure of

-0.331 * **
volatility to the average size of the industry, ensuring that the measure

0.415 * **
0.330 * **
-0.182 * *
-0.126 *
of dynamism is not disproportionately influenced by the industry’s size.

1.000

0.073
2.172
2.226
As noted by previous studies (Henderson et al., 2006; Stoel & Muhanna,

(8)
2009; Lam et al., 2019), a high level of industry dynamism typically
reflects an unstable business environment with unpredictable customer

0.311 * **
requirements and changeable market demand. Therefore, our mea­

0.137 *
-0.110
-0.020
1.000

0.080
0.055
0.049

0.025
0.141
surement aptly captures the nature of industry dynamism.
(7)

4.3.3. Customer complexity

-0.420 * **
-0.209 * **
0.291 * **

0.196 * **
Customer complexity pertains to the level at which managers must

-0.083
1.000

0.003

0.123

0.054
0.173
0.186
respond to a wide range of customer demands (Schmitz & Ganesan,
(6)

2014). Thus, a company with more business customers should exhibit a

higher level of customer complexity. Based on the study of Bozarth et al.
0.197 * **
0.286 * **

0.236 * **
(2019), we operationalize the customer complexity as the firms’ number
-0.096

-0.037
of business customers. According to this measurement, a higher number
1.000

0.081
0.068
0.101

0.005

0.153
0.960
(5)

of customers likely introduces a wider array of demands and amplifies

the complexity of customer management, thereby presenting a major
facet of customer complexity. We utilize the Bloomberg SPLC database
0.251 * **

0.247 * **
-0.178 * *
0.180 * *

0.190 * *

0.150 **

to identify the firms’ number of business customers. Given the skewness

-0.103
1.000

0.046

0.061
0.038

3.192
distribution of business customer numbers across firms, we employ 1.749
(4)

logarithm transformation to measure customer complexity.

0.187 * *

0.186 * *

0.174 * *
-0.062
-0.052
-0.070
-0.069

-0.018

-0.068

4.3.4. Control variables

1.000

0.105

0.004

0.105
0.038
(3)

We also incorporate several control variables to capture the potential

Note: * p < 0.10, ** p < 0.05, * ** p < 0.01 (two-tailed tests).

impact on abnormal returns. First, we control for firm-specific factors,

including marketing efficiency, firm debt, firm profitability, firm size,
-0.172 * *
0.148 *

firm liquidity, firm financial slack, R&D intensity, and firm reputation.
-0.084
-0.031
-0.037
-0.011
1.000
0.086
0.108

0.120
0.021
0.110

0.000
0.500
0.501

To control for the effects of industry and year-specific factors on firms’

(2)

stock returns, we also include two control variables corresponding to

Correlation Matrix and Descriptive Statistics.

goods or services (whether companies primarily operate in goods or

-0.149 * *
0.188 * *

-0.140 *
-0.131 *
0.145 *

0.148 *

services industries) and time trend (assigning an integer number to a

-0.114

-0.086

-0.007

-0.012
1.000

0.100
0.108

0.083

0.003
0.029

firm depending on the announcement year). The detailed measurements

(1)

of these control variables are shown in Table 3.

(2) AI-enabled B2B Marketing

4.4. Results
(10) Firm Financial Slack
(4) Customer Complexity
(5) Marketing Efficiency
(3) Industry Dynamism

(13) Goods or Service

(12) Firm Reputation
(7) Firm Profitability

Table 4 shows the descriptive statistics, including means and stan­

Standard Deviation
(11) R&D Intensity
(9) Firm Liquidity

(14) Time Trend

(1) CAR (− 1, 0)

dard deviations, and the correlations of all variables in Eq. (1). Table 5
(6) Firm Debt

(8) Firm Size

presents the results of cross-sectional regression analysis with CAR over

Variables

the event window (− 1, 0) as the dependent variable. More specifically,

Table 4

Mean

model 1 is the basic model and only includes all control variables. In
model 2, the direct effect of AI-enabled B2B marketing is introduced.

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Y. Zhan et al. International Journal of Information Management 76 (2024) 102768

Table 5 higher level of industry dynamism and weaker for firms with greater
Results of Regression Analysis. customer complexity. Model 4 also shows that the direct effects of in­
Variable Model 1 Model 2 Model 3 Model 4 dustry dynamism and customer complexity on CAR are significantly
negative and positive, respectively. Besides, regarding other control
AI-enabled B2B 0.161 * * 0.154 * * 0.154 **
Marketing (2.045) (2.000) (2.023) variables, we also find that firm profitability and firm liquidity can
AI-enabled B2B 0.217 * ** 0.251 * ** positively affect abnormal stock returns. In contrast, firm debt and
Marketing (2.589) (2.963) financial slack tend to exert a negative impact.
× Industry
Dynamism
AI-enabled B2B -0.158 * *
5. Study two: qualitative analysis
Marketing (− 1.975)
× Customer While secondary data analysis provides valuable insights, it is
Complexity important to acknowledge its limitations, including potential data gaps
Industry Dynamism -0.128 -0.141 * -0.226 * ** -0.234 * **
and the inability to capture contextual nuances and participant per­
(− 1.570) (− 1.733) (− 2.620) (− 2.758)
Customer 0.205 * * 0.203 ** 0.202 * * 0.196 * * spectives (Johnston, 2014). To complement the findings, we extended
Complexity (2.336) (2.340) (2.370) (2.328) our research methodology by conducting a focus group study. This
Marketing 0.056 0.060 0.047(0.594) 0.076(0.955) qualitative phase enabled us to delve deeper into the underlying factors
Efficiency (0.680) (0.749) and nuances related to the three hypotheses examined in our quantita­
Firm Debt -0.117 -0.116 -0.149 * -0.146 *
(− 1.334) (− 1.330) (− 1.727) (− 1.702)
tive analysis. The advantages of applying the focus group method in our
Firm Profitability 0.161 * 0.164 ** 0.165 * * 0.150 * research context, exploring the impact of AI adoption for B2B marketing
(1.930) (1.995) (2.038) (1.861) on shareholder reaction, are noteworthy. For instance, the focus group
Firm Size -0.091 -0.088 -0.099 -0.118 setting fostered open and interactive discussions among participants,
(− 0.871) (− 0.846) (− 0.976) (− 1.178)
allowing for the exploration of diverse perspectives and the emergence
Firm Liquidity 0.142 0.129 0.159 * 0.144 *
(1.651) (1.517) (1.879) (1.713) of rich insights. Also, it provided a platform for shareholders, senior
Firm Financial Slack -0.142 -0.146 -0.167 * -0.175 * managers, and investors to share their experiences and perceptions,
(− 1.400) (− 1.452) (− 1.689) (− 1.786) offering a nuanced understanding of the intricate dynamics at play.
R&D Intensity -0.015 -0.025 -0.024 -0.069 Besides, the qualitative data obtained from the focus group discussions
(− 0.154) (− 0.255) (− 0.255) (− 0.719)
Firm Reputation -0.087 -0.110 -0.076 -0.058
enriched our research by elucidating the "why" behind the quantitative
(− 0.972) (− 1.224) (− 0.858) (− 0.659) results (Cyr, 2016), thereby providing a more comprehensive view of the
Goods or Service -0.042 -0.014 -0.059 -0.097 complex relationships within the context of AI adoption and shareholder
(− 0.478) (− 0.157) (− 0.667) (− 1.079) reactions in B2B marketing.
Time Trend 0.019 0.026 0.024(0.317) 0.019(0.258)
(0.236) (0.329)
Number of 162 162 162 162 5.1. Method
Observations
R-squared 0.141 0.164 0.201 0.221 For the collection of qualitative data through focus group discus­
Adjusted R-squared 0.071 0.091 0.124 0.141 sions, we adopted a purposive sampling approach to ensure the inclu­
F-value 2.031 * * 2.236 * * 2.635 * ** 2.768 * **
sion of participants who could provide valuable insights into the impact
Notes: * p < 0.10, ** p < 0.05, *** p < 0.01 (one-tailed tests for hypothesized of AI adoption for B2B marketing on shareholder reaction. Our sampling
variables). Standardized coefficients are reported. t-statistics are in parenthesis. strategy targeted two distinct groups: company managers actively
involved in AI adoption for B2B marketing and shareholders and in­
The interactions between AI-enabled B2B marketing and industry vestors representing the companies. To identify prospective partici­
dynamism and customer complexity are sequentially included in models pants, we leveraged our professional network and collaboration with a
3 and 4. The F-tests (p < 0.05) show that these four models are signif­ prominent global innovation incubator center. In total, we identified 19
icant, with adjusted R-squared values between 0.071 and 0.141. To test prospective participants and extended invitations via email to partici­
for multicollinearity, we calculate the full model’s variance inflation pate in a half-day focus group workshop dedicated to facilitating in-
factor (VIF). The maximum and mean values of VIF are 1.93 and 1.40 depth discussions on the subject. Clear communication of the work­
(much lower than the threshold of 10), thus suggesting that multi­ shop’s purpose, venue and schedule was provided, accompanied by as­
collinearity is not a concern in our models (Kennedy, 1998). surances of strict anonymity preservation.
As shown in Table 5, all variables remain consistent across these four Of the 19 prospective participants, 12 confirmed their attendance,
models. We thus employ the full model (model 4) to interpret the testing thereby contributing to the richness of our qualitative data. Importantly,
results of the hypotheses. Model 4 reveals that the coefficient of AI- the selection process prioritized diversity, ensuring representation from
enabled B2B marketing is significantly positive (β = 0.154, p < 0.05). firms at various stages of AI adoption and spanning diverse industry
This implies that the stock market reacts more positively to the firms contexts. Among the 12 participants, we engaged with 7 managers
with AI-enabled B2B marketing practices, supporting H1. The results of representing four different firms, encompassing two manufacturing
model 4 also show that the coefficient for the interaction between AI- companies and two IT services firms, alongside 5 key shareholders and
enabled B2B marketing and industry dynamism is significantly posi­ investors from these organizations. This purposive sampling strategy
tive (β = 0.251, p < 0.01). This finding confirms H2 that industry enabled us to gather diverse and comprehensive qualitative insights that
dynamism positively moderates the relationship between AI-enabled further enriched our study’s depth and breadth.
B2B marketing and firms’ market value via abnormal stock returns. By To facilitate our focus group discussion, we meticulously framed our
contrast, customer complexity negatively moderates the relationship research objectives to provide clear guidance on the purpose of our
between AI-enabled B2B marketing and firms’ market value study, as outlined in Table 6. These predefined objectives served as a
(β = − 0.158, p < 0.05). This finding suggests that shareholders react framework for our inquiries during the workshop. The discussion
less positively when firms with more complex customer bases adopt AI revolved around the examination of the three hypotheses central to our
for B2B marketing, supporting H3b but rejecting H3a. research. For Hypothesis 1, participants engaged in conversations
In summary, we find support for the positive impact of AI-enabled addressing questions such as "Could you share your thoughts on why
B2B marketing on shareholder reaction measured by firm value. More­ shareholders generally react positively to AI implementation in B2B mar­
over, this positive impact is stronger for the firms operating with a keting?" and "What specific benefits or expectations do you associate with AI

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Y. Zhan et al. International Journal of Information Management 76 (2024) 102768

Table 6 operations. By accurately forecasting demand and optimizing inventory

Objectives of the qualitative study. levels, companies can reduce carrying costs and avoid stockouts, thereby
Findings Objectives enhancing operational efficiency. Moreover, from a shareholder and
investor perspective, the positive reaction to AI adoption is grounded in
Hypothesis 1 (Positive Explore the specific reasons and emotions behind
Reaction) shareholders’ positive reactions to AI implementation its potential to impact the bottom line. They emphasized their expec­
in B2B marketing. Investigate whether there are tations of improved market positioning and revenue growth resulting
common themes or differences among participants’ from more effective and targeted marketing strategies powered by AI.
responses. For example, participants highlighted how AI can analyse vast datasets
Hypothesis 2 (Dynamic Probe into shareholders’ perceptions of industry
Industry Concerns) dynamics and how these dynamics influence their
to identify precise customer segments for tailored marketing campaigns.
reactions to AI implementation. Identify key industry This approach not only minimizes wasted advertising spend but also
concerns and their impact on shareholder sentiment. leads to higher conversion rates, aligning with the social actor
Hypothesis 3 (Complex Investigate why shareholders of firms with more perspective, where organizations strategically utilize AI to optimize
Customer Bases) complex customer bases might react less positively to
their interactions and performance.
AI implementation. Explore their concerns,
expectations, and factors that contribute to this Additionally, participants highlighted how AI’s ability to continu­
reaction. ously learn and adapt can lead to ongoing improvements in product
development and customer experience, fostering brand loyalty and,
subsequently, long-term profitability. These all support the belief that AI
adoption in B2B marketing?" Hypothesis 2 prompted discussions with adoption in B2B marketing has the potential to create tangible business
questions such as "From your perspective, how do industry dynamics and value, strengthen market positions, and drive financial performance in
concerns affect your perception of AI adoption in B2B marketing?" and "Do the B2B marketing context, aligning with the perspectives of firms’ in­
you believe that firms in more dynamic industries have unique considerations vestors and shareholders.
when it comes to AI implementation? Please elaborate." Hypothesis 3 guided
participants to respond to queries like "What challenges or complexities do 5.2.2. Do firms in dynamic industries have distinct AI implementation
you perceive in firms with more complex customer bases when implementing considerations, impacting shareholder reactions (H2)
AI in B2B marketing?" and "Could you provide examples of situations where Participants concurred that industry-specific dynamics and concerns
shareholders may have concerns about AI adoption in such firms?". exert a profound influence on the perception of AI integration. For
The focus group workshop, spanning approximately 4 hours, was instance, in highly regulated sectors like finance or healthcare, our
organized to foster open and in-depth discussions. We structured the participants underscored the heightened importance of AI-driven
workshop into three sessions, each corresponding to one of our research compliance and data security. In these domains, where privacy and
hypotheses. To ensure thorough exploration and engagement, each regulatory compliance are paramount, AI serves as an indispensable tool
session was carefully timed to last about 60 minutes. To maintain for meticulously adhering to stringent guidelines. Financial institutions
participant engagement and facilitate reflection, a 15-minute break was employ AI to detect fraudulent activities and ensure compliance with
placed between the sessions. During each session, we provided a concise ever-evolving financial regulations, while healthcare organizations rely
introduction to frame the topic, followed by a period dedicated to on AI to safeguard patient data and enable precise diagnoses.
participant responses. This was complemented by a summarizing Conversely, industries characterized by rapid technological advance­
segment at the end, summarizing key insights and reflections from the ments, exemplified by agile tech startups, uniformly viewed AI as an
discussion. imperative for maintaining competitive relevance. These firms operate
Rather than recording the session, we chose to capture insights in ecosystems where innovation is the lifeblood of success. Participants
through detailed notes, ensuring participants’ anonymity and comfort. emphasized that AI is not merely an asset but a necessity to swiftly adapt
Throughout the workshop, we were assigned specific roles in notetaking to changing market landscapes. Tech startups leverage AI to gain a
to document key points, unique perspectives, and the overall essence of competitive edge through product personalization and real-time deci­
the discussions. These notes included quotes on critical points and sion-making. For instance, AI-powered recommendation engines
summaries of arguments, providing a rich view of the discussions. After enhance user experiences in e-commerce startups, while fintech startups
the workshop, the notes were collectively checked and transcribed to harness AI-driven predictive analytics to optimize lending decisions.
ensure accuracy and completeness. This transcription process involved This perspective inherently aligns with our hypothesis that share­
cross-referencing notes from different members to capture a compre­ holders of firms subject to more dynamic industry environmental con­
hensive and unified account of the discussions. The transcribed data cerns react more positively to AI implementation in B2B marketing. The
were then systematically analysed to generate insights relevant to our rationale behind this alignment is that in dynamic industries, the im­
research hypotheses. During the workshop, we took on the role of a peratives for AI adoption are often inextricably tied to maintaining
facilitator, ensuring that the discussion remained focused among the competitiveness and capitalizing on rapid market shifts. Consequently,
participants. This approach fostered an open and informal discussion shareholders in such sectors recognize AI as a strategic asset to fortify
setting, encouraging participants to freely express their perspectives and market positions and drive revenue growth. In contrast, in less dynamic
insights. sectors, the considerations around AI are often centered on operational
efficiency rather than competitive survival. This illuminates the
5.2. Results nuanced relationship between industry dynamism, AI adoption, and
shareholder reactions. It suggests that shareholders in dynamic in­
5.2.1. Why shareholders embrace AI adoption in B2B marketing (H1) dustries exhibit a more positive disposition towards AI implementation
During our focus group discussion, managers representing different in B2B marketing due to its centrality in navigating their industry’s
firms, shareholders and investors provided valuable insights into why unique challenges and opportunities. The insights emphasize the indis­
shareholders typically react positively to AI adoption in B2B marketing. pensability of tailoring AI strategies to meet the unique needs and
The consensus among participants was that AI adoption in B2B mar­ challenges posed by different industries.
keting holds the promise of enhanced operational efficiency, increased
competitiveness, and improved profitability, a sentiment supported by 5.2.3. Why shareholders of firms with complex customer bases react less
concrete examples. For instance, participants shared examples of how positively to AI adoption in B2B marketing (H3)
AI-driven predictive analytics used by companies such as Maersk, P&G, A recurring theme was the formidable task of aggregating and
Walmart and DHL can enable businesses to streamline their supply chain harmonizing vast datasets from diverse customer segments, each with its

10
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unique preferences and behaviors. Participants noted that achieving a B2B marketing on firm performance through rational decision-making
unified customer view for effective AI-driven targeting and personali­ paths. The findings from our study bridge the gap between AI technol­
zation can be arduous when confronted with a complex customer ogy and B2B marketing-specific initiatives, aligning with studies like
landscape. Additionally, managing the privacy and data security con­ those by Kumar et al. (2019) and Huang and Rust (2021), which explore
cerns inherent to complex customer profiles emerged as a significant how AI techniques can enhance various aspects of B2B marketing,
challenge. Participants emphasized the need to ensure compliance with including targeting, segmentation, and customer relationship manage­
data protection regulations, especially when dealing with sensitive in­ ment. Through empirical evidence, our study contributes to a deeper
formation from varied customer segments. understanding of how AI’s impact on these decision-making processes
A main concern was the risk of unintended consequences from AI- resonates with the perspectives of key stakeholders.
driven decisions, particularly in industries with diverse and multi- The third stream of literature focuses on the impacts of AI on society
faceted customer groups. For instance, in the pharmaceutical sector, and the workplace. Specifically, studies show that AI technologies such
where customers range from healthcare providers to insurers and pa­ as recommendation systems and intelligent agents can offer fantastic
tients, the implementation of AI in pricing could inadvertently result in experiences and interactive engagements with consumers and em­
inconsistent pricing strategies. Such inconsistencies might not only ployees (Kot & Leszczyński, 2019; Prentice & Nguyen, 2020; Sung et al.,
provoke regulatory actions but also risk alienating key customer seg­ 2021). Examples include in-store technologies like augmented reality
ments, potentially damaging the brand’s reputation and worrying and intelligent displays, real-time personalized customer interactions,
shareholders about possible long-term financial repercussions. and machine learning techniques for better marketing predictions
Furthermore, in environments with complex customer interactions, the (Morgan & Rego, 2006; Lee et al., 2013; Davenport et al., 2018). Our
transparency and interpretability of AI algorithms become important. study extends this literature stream by providing empirical insights into
Stakeholders expressed unease over scenarios where AI models make how AI adoption in B2B marketing influences shareholder reactions,
critical business decisions, such as credit scoring in financial services, thereby bridging the gap between AI’s societal and workplace impacts
without a transparent and understandable rationale. This lack of clarity and its implications for key stakeholders in different B2B context. By
raises ethical concerns, such as fairness in decision-making, and could examining shareholder perspectives in response to AI-enabled market­
lead to regulatory compliance issues. Shareholders are particularly wary ing initiatives, our research adds a valuable layer of understanding to
of the legal and reputational risks that may arise from these opaque AI the multifaceted effects of AI technology adoption in contemporary
practices. business environments.
These concerns are magnified in firms where customer complexity is In summary, the three literature streams examined in this study
heightened, as they face challenges in aggregating and harmonizing converge to suggest that the implementation of AI in B2B marketing can
diverse data sets, along with ensuring data security. Thus, while AI holds yield substantial benefits and potentially lead to competitive advan­
the promise of streamlining operations and offering tailored customer tages. Our study’s findings align with a significant portion of prior
solutions, its adoption in firms with multifaceted customer structures technology-focused literature, which has consistently identified positive
can lead to negative shareholder perceptions, dominated by fears of returns on investment (Lam et al., 2019; He et al., 2020; Mikalef et al.,
regulatory, legal, and reputational challenges. On the other hand, in 2021). However, it’s worth noting that our results diverge from certain
industries where customer needs are more uniform, and data handling is technology-focused event studies, some of which have reported negative
less convoluted, the adoption of AI might be viewed more favorably, stock returns on the day of implementation (Lui et al., 2021; He et al.,
with shareholders anticipating benefits from efficient operations and 2020), or insignificant returns following adoption (Im et al., 2001; Dos
enhanced customer engagement. Santos et al., 1993). These findings hold timely and practical relevance
for both managers and industry practitioners, particularly given the
6. Discussion recent proliferation of AI applications. Managers typically make IT in­
vestment decisions with the goal of maximizing firms’ business value.
Nowadays, many studies have investigated the potential benefits However, estimating the impact of such investments can be challenging,
generated from AI implementation for B2B marketing, with a few early as measurements like productivity and profitability often remain un­
research empirically examining such impacts (Martínez-López & Casil­ available for several months post-implementation. Moreover, the true
las, 2013; Farrokhi et al., 2020; Wamba, 2022). Generally, the existing financial impact of AI adoption may not be immediately apparent, as
literature on AI in B2B marketing can be categorized into three main financial performance is frequently subject to managerial planning and
streams. The first literature stream associates with a controversial manipulation.
debate regarding how AI can support firms in automating their pro­ While our use of event study and focus group discussion methodol­
duction and facilitating their existing operations process (Campbell ogy may not entirely capture all precise business value of AI imple­
et al., 2020; Saura et al., 2021; Li et al., 2021). AI has been demonstrated mentation, it does provide insights into shareholders’ concerns
to enable organizations to automate various B2B processes, such as regarding AI adoption in B2B marketing and the associated financial
better identifying the targets for outward and inward marketing initia­ risks. Consequently, our study offers a comprehensive understanding of
tives, simplifying customer relationship management, and creating new how shareholders react to AI-enabled B2B marketing initiatives in
consumer experiences via digital devices. For instance, Campbell et al. various business contexts, thereby providing valuable support for in­
(2020) develop a theoretical model to explain how AI can improve vestment decision-making in emerging technologies. Based on the
marketing through intelligent automation across different stages. Our findings, this research provides several important theoretical and
study, building on this literature stream, provides empirical insights into managerial implications, as discussed in the following parts.
how AI adoption in B2B marketing influences shareholder reactions,
thus advancing our understanding of the impacts and practical impli­ 6.1. Implications for research
cations of AI integration in production automation and operations pro­
cess improvements. This research provides several theoretical contributions and enriches
The second stream of literature relates to the implementation of AI the existing B2B marketing, social action theory, IT and Operations
for better marketing decision support (Syam & Sharma, 2018; Farrokhi Management literature. The social actor perspective offers a comple­
et al., 2020; Bag et al., 2021). For example, Syam and Sharma (2018) mentary and comprehensive theoretical support of the AI-enabled B2B
investigate how AI technologies can support managers in making better marketing and shareholder reaction relationship. This is aligned with
decisions in personal selling and sales management. Bag et al. (2021) Freeman (1984) stakeholder theory which suggests that firms should
offer a conceptual framework to demonstrate the effect of AI-enabled consider the interests of a broader group of stakeholders – everyone who

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Y. Zhan et al. International Journal of Information Management 76 (2024) 102768

can substantially affect, or be affected by, the welfare of a firm. Notably, receive a competitive advantage from its capability to support firms by
we theorize that firms’ AI implementation for B2B marketing can project anticipating the desires and preferences of clients. It also enables firms
two interrelated messages to shareholders: a symbol for a more signifi­ to customize their services and products according to the customers’
cant managerial influence and a higher likelihood of achieving requirements and interests (Paschen et al., 2019; Han et al., 2021). For
long-term competitiveness, eventually resulting in improved share­ instance, in the dynamic consumer goods industry, Unilever adopted AI
holder reaction via positive stock returns. This theorization allows us to for B2B marketing to reduce the time required for production and better
investigate the symbolic nature of AI implementation for B2B marketing satisfy their ever-changing business consumers’ needs (Campaign,
and its social impacts while linking firms’ AI implementation practices 2019). Meanwhile, customer complexity can be seen as the level at
to stock returns. We deny the ’one-size-fits-all’ assumption (Braun & which marketing managers react to a wide range of customer demands
Clarke, 2021; Lui et al., 2021) and investigate the possible effects be­ and personnel involved with different purchasing processes in con­
tween AI-enabled B2B marketing practices and firms’ industry and ducting their businesses (Schmitz & Ganesan, 2014). In less complex
operational environments, such as industry dynamism and customer customer situations, AI implementation for B2B marketing enables
complexity. We theorize how these business situations indicate various powerful personalization without additional changes to its operations,
degrees of social and environmental expectation/support for AI imple­ consequently improving consumers’ perceived values and willingness to
mentation in B2B marketing, thus moderating the effect of AI-enabled pay more for the products or services (Chung et al., 2020; Prentice &
B2B marketing initiatives on shareholder reaction. Nguyen, 2020). These external business environments can lead to the
The social actor perspective enhances our understanding by exam­ effective implementation of AI for B2B marketing. This is due to the
ining the direct social impact of AI-enabled B2B marketing initiatives privacy and data security concerns inherent to complex customer pro­
and considering the indirect moderating effect of different external files, especially when dealing with sensitive information from varied
business environments. It is believed that this social actor perspective customer segments. In this way, we suggest firms operating in dynamic
can be used as an insightful theoretical lens for studying future research industries and with less complex customer bases take advantage of their
in this area (Cunha & Carugati, 2011; Orlikowski, 2010). Particularly, it operating environments and harvest more values from their AI-enabled
encourages studies to change their research focus from the examination B2B marketing initiatives.
of AI’s business applications and technological characteristics (Martí­ The insights gleaned from our focus group discussion carry sub­
nez-López & Casillas, 2013; Farrokhi et al., 2020; Baabdullah et al., stantial practical implications for organizations venturing into AI
2021) to more operational and strategic perspectives on AI imple­ adoption for B2B marketing. Firstly, recognizing that shareholders are
mentation in B2B marketing, investigating its ability to improve firms’ inclined to respond positively to AI initiatives when presented with
social impacts and gain competitive advantage. Besides, shareholders tangible benefits, businesses should emphasize the potential for
may reward or penalize firms for their AI-enabled B2B marketing ini­ enhanced operational efficiency, increased competitiveness, and
tiatives according to external business environments. While this paper improved profitability. These outcomes can be showcased through
pays particular attention to industry dynamism and customer concrete examples, aligning with shareholder expectations. Secondly,
complexity, more can be conducted to investigate various external industry-specific considerations should inform AI implementation stra­
environmental factors that may present different degrees of alignment tegies. In highly regulated sectors, a strong emphasis on AI-driven
with AI implementation in B2B marketing and therefore influence its compliance and data security is imperative, while in dynamic in­
social and economic impact. dustries, AI should be positioned as a strategic asset for maintaining
market relevance. Lastly, for firms grappling with complex customer
6.2. Implications for practice bases, addressing challenges related to data aggregation, harmonization,
and data security is paramount. Moreover, enhancing the transparency
This study offers several practical implications to managers and in­ of AI algorithms can assuage shareholder concerns and mitigate poten­
dustry practitioners. As our findings show that shareholders reward tial risks. Overall, these practical implications underscore the impor­
firms for their AI-enabled B2B marketing initiatives, companies need to tance of tailoring AI strategies to specific industry contexts and
pay particular attention to releasing new AI implementations for B2B addressing the intricacies of data management and algorithmic trans­
marketing, given that they are important for investors and the market parency to foster positive shareholder reactions.
value of firms. Although AI adoption has attracted extensive public
attention over the past decade, the current proficiency of AI imple­ 6.3. Limitations and future directions
mentation for B2B marketing is still in its infancy. This is partly due to
managers’ lack of knowledge regarding AI adoption and the difficulties This research has several limitations. First of all, the data applied in
of measuring its business impact (Lui et al., 2021; Huang & Rust, 2021). this study is limited to publicly listed firms in the US, which may reduce
This research represents one of the first few studies exploring the effect the generalizability of the results to SMEs and firms listed in other
of AI implementation for B2B marketing in terms of shareholder reaction countries. Thus, it would be interesting to further investigate the role of
measured by abnormal stock returns. It resolves the controversy over the AI-enabled B2B marketing initiatives in different business contexts and
business value of AI-enabled B2B marketing from a social actor for unlisted SMEs. Secondly, this study examines the impact of AI-
perspective and urges firms to adopt AI for their B2B marketing to enabled B2B marketing initiatives on shareholder reaction measured
harvest the benefits. Our study’s significant positive stock returns allow by abnormal stock returns. While stock returns indicate the overall firm
firms to further convince their investors and stakeholders to support value and capture the full financial effect of the AI adoption (Lui et al.,
their AI adoption for B2B marketing. 2021), it is unclear whether AI-enabled B2B marketing initiatives affect
While this study suggests shareholders of firms react positively to the stock returns through other measurements such as productivity growth
announcement of AI-enabled B2B marketing initiatives, it also encour­ and profitability improvement. As a result, future studies can use
ages firms to focus on different external business environments in which different measurements and methodologies to help verify the results
the AI is adopted. The findings show that the increased stock returns due drawn in this research. Additionally, a relatively low R-squared value
to AI-enabled B2B marketing initiatives vary across diverse business (0.221) in our final regression model may highlight the limited power of
environments. Specifically, our study suggests that shareholders react AI usage in B2B marketing on stock returns and suggests that it is
more positively to the announcement of AI-enabled B2B marketing valuable for advancing understanding of the various factors related to
initiatives in more dynamic industries but with less complex customer AI-enabled B2B marketing practices impacting stock returns. Future
bases. This is because in dynamic industries with changing consumer studies could consider a more detailed and multifaceted exploration of
needs and market demands, AI-enabled B2B marketing allows firms to AI-enabled B2B marketing practices (e.g., specific types of AI-enabled

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