Lean Practice Implementation and Firm Competitiveness: An Artificial Intelligence Utilization Perspective
DOI:
https://doi.org/10.63561/jca.v2i4.1070Keywords:
Artificial intelligence, Market share, Lean Practice, Competitiveness, Panel DataAbstract
This study investigates the extent to which lean practice implementation in terms of artificial intelligence utilization affects the competitiveness (market share) of commercial banks in Nigeria using a panel data framework. The study involves twelve (13) listed commercial banks and covers the period from March 2018 to March 2021. Specifically, the empirical analysis is based on three conventional panel data methods: pooled regression, fixed effects, and random effects methods. The model selection is based on the Likelihood Ratio test and the Hausman specification test. We find that the specified model is consistent with the random effects’ theory. More specifically, our findings indicate that cross-sectional heterogeneity, primarily arising from differences in uniqueness such as organisational culture and philosophies, treated as an error process, is a significant aspect of the relationship between artificial intelligence and bank market share. Further, our analysis shows that market share is persistent and can be predicted on the basis of its own immediate history. Finally, as we control the effects of COVID-19 and corporate governance in our model, we find evidence that artificial intelligence utilisation has a positive but insignificant impact on commercial bank market share.
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