Proceedings of the 2026 4th International Conference on Management Innovation and Economy Development (MIED 2026)

2026 4th International Conference on Management Innovation and Economy Development (MIED 2026)

📍Shenzhen, China🗓️ 10-12 July 2026
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AI Investment and Operational Resilience: A Micro-Level Digital Solow Paradox

Authors
Qian Liu1, *
1Harbin Institute of Technology Shenzhen, Shenzhen, 518055, China
*Corresponding author. Email: liu_antoni0409@163.com
Corresponding Author
Qian Liu
Available Online 29 September 2026.
DOI
10.2991/978-94-6239-787-3_11How to use a DOI?
Keywords
AI investment; Operational resilience; Digital Solow paradox; Inventory optimization; Adjustment costs
Abstract

In increasingly volatile business environments, firms are expected not only to maintain stable operations but also to adapt quickly to shocks and opportunities. Whether artificial intelligence (AI) investment improves both dimensions simultaneously remains unclear. Drawing on information processing theory and adjustment cost theory, this study examines the dual effect of AI investment on operational resilience using Chinese A-share listed firms from 2011 to 2024. The evidence reveals a two-sided pattern: AI investment improves robustness by reducing stock-price volatility, but weakens adaptability by lowering short-run annual stock returns. Mechanism tests suggest that AI strengthens robustness partly through inventory optimization, whereas the adaptability penalty mainly reflects increased management costs during digital transformation. Life-cycle analysis further shows that growth and mature firms face a relatively linear trade-off between stability and profitability, while declining firms exhibit a threshold pattern in which only high-intensity transformation can reverse organizational rigidity. The study contributes to the micro-foundations of the Digital Solow Paradox and offers practical implications for firms seeking to balance stability and agility in AI-enabled transformation.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2026 4th International Conference on Management Innovation and Economy Development (MIED 2026)
Series
Advances in Economics, Business and Management Research
Publication Date
29 September 2026
ISBN
978-94-6239-787-3
ISSN
2352-5428
DOI
10.2991/978-94-6239-787-3_11How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Qian Liu
PY  - 2026
DA  - 2026/09/29
TI  - AI Investment and Operational Resilience: A Micro-Level Digital Solow Paradox
BT  - Proceedings of the 2026 4th International Conference on Management Innovation and Economy Development (MIED 2026)
PB  - Atlantis Press
SP  - 86
EP  - 91
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-787-3_11
DO  - 10.2991/978-94-6239-787-3_11
ID  - Liu2026
ER  -