Robot adoption and export performance: evidence from Chinese industrial firms

PurposeAs a new research interest, robots have surpassed human performance across several aspects. In this research, the authors wish to investigate whether robot adopters perform better than non-adopters in terms of export behavior, especially when distinguishing between different types of firms.Design/methodology/approachThe authors try a new strategy to identify the extent of robot adoption by import data and compare the export trajectories of robot adopters and non-adopters by employing the propensity score matching-difference in difference (PSM-DID) method.FindingsThe authors find that robot adopters are more likely to enter export markets and improve subsequent export performance, as the gains from doing so can spread the reduction in variable production costs to a larger customer base abroad. But this rule does not always seem to work; for large-scale firms, robot adoption makes it easier to win export competition and increase market share, while small and medium-sized enterprises (SMEs) do not seem to enjoy any benefits from adoption. More importantly, robot adoption also leads to the fiercer market competition when improving the productivity of firms, which will threaten smaller non-adopters.Originality/valueThe findings provide new evidence for the scale bias of robotics and offer new insights into whether exporters or future exporters ought to adopt robots in production.