Exploring the impact of industrial robots on firm innovation under circular economy umbrella: a human capital perspective
ISSN: 0025-1747
Article publication date: 4 August 2023
Issue publication date: 5 September 2024
Abstract
Purpose
A new round of technological revolution is impacting various aspects of society. However, the importance of technology adoption in fostering firm innovation is underexplored. Therefore, this study aims to investigate whether robot adoption affects technological innovation and how human capital plays a role in this relationship in the era of circular economy.
Design/methodology/approach
Based on the robot adoption data from the International Federation of Robotics (IFR) and panel data of China's listed manufacturing firms from 2011 to 2020, this study uses regression models to test the impact of industrial robots on firm innovation and the mediating role of human capital.
Findings
The results demonstrate that the adoption of industrial robots can significantly promote high-quality innovation. Specifically, a one-unit increase in the number of robots per 100 employees is associated with a 13.52% increase in the number of invention patent applications in the following year. The mechanism tests show that industrial robots drive firm innovation by accumulating more highly educated workers and allocating more workers to R&D jobs. The findings are more significant for firms in industries with low market concentration, in labor-intensive industries and in regions with a shortage of high-end talent.
Research limitations/implications
Due to data limitations, the sample of this study is limited to listed manufacturing firms, so the impact of industrial robots on promoting innovation may be underestimated. In addition, this study cannot observe the dynamic process of human capital management by firms after adopting robots.
Practical implications
The Chinese government should continue to promote the intelligent upgrading of the manufacturing industry and facilitate the promotion of robots in innovation. This implication can also be applied to developing countries that hope to learn from China's experience. In addition, this study emphasizes the role of human capital in the innovation-promoting process of robots. This highlights the importance of firms to strengthen employee education and training.
Social implications
The adoption of industrial robots has profoundly influenced the production and lifestyle of human society. This study finds that the adoption of robots contributes to firm innovation, which helps people gain a deeper understanding of the positive impacts brought about by industrial intelligence.
Originality/value
By exploring the impact of industrial robots on firm innovation, this study offers crucial evidence at the firm level to comprehend the economic implications of robot adoption based on circular economy and human perspectives. Moreover, this study reveals that human capital is an important factor in how industrial robots affect firm innovation, providing an important complement to previous studies.
Keywords
Acknowledgements
Expression of concern: The publisher of Management Decision is issuing an Expression of Concern for the following article “Luo, H. and Qiao, H. (2023), “Exploring the impact of industrial robots on firm innovation under circular economy umbrella: a human capital perspective”, Management Decision, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MD-02-2023-0285”, which was submitted to the guest-edited special issue ‘Navigating the role of circular economy in entrepreneurship: Opportunities and challenges’. An investigation by the publisher found a number of articles with multiple concerns, including but not limited to compromised editorial handling and reviewing, undisclosed conflicts of interest, and lack of suitability for the scope of the journal. As a result of these concerns and as trust in the content is central to the integrity of the publication process, the Editor-in-Chief and publisher have taken the decision to publish an Expression of Concern for all articles within this special issue. The authors of this article would like to note that they do not agree with the content of this notice. The journal has not been able to confirm whether the authors were aware of these concerns. An investigation is ongoing and is currently unresolved. Further information will be provided by Management Decision as it becomes available.
Citation
Luo, H. and Qiao, H. (2024), "Exploring the impact of industrial robots on firm innovation under circular economy umbrella: a human capital perspective", Management Decision, Vol. 62 No. 9, pp. 2763-2790. https://doi.org/10.1108/MD-02-2023-0285
Publisher
:Emerald Publishing Limited
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