AI orientation and Internationalization in Developed Markets: Evidence from S&P 500 Firms

While artificial intelligence increasingly shapes strategic decision-making in established MNCs, its influence on internationalization in developed markets has received limited scholarly attention. Drawing on the Knowledge Management Perspective and applying the theoretical framework of Liu et al. (2024), this study examines how AI orientation shapes internationalization speed and geographic scope among S&P 500 firms, with cultural distance as a moderator. The analysis covers a longitudinal panel of 201 firms across 724 firm-year observations (2018-2022). AI orientation is operationalized through keyword-based content analysis of 10-K filings, and hypotheses are tested using Random Effects panel regressions. Contrary to theoretical expectations, AI orientation predicts neither internationalization speed nor geographic scope. The cultural distance interaction is significant but reversed in direction. Firm size, age, and leverage prove more consequential for international expansion. The findings suggest that the framework’s mechanisms are context-dependent and reveal a gap in how international business theory currently incorporates AI.