In the era of responsible artificial intelligence and digitalization: business group digitalization, operations and subsidiary performance

With the rapid development of digital technologies, responsible AI has become a critical focus for ensuring ethical and socially conscious advancements in business and operations management. The integration of responsible AI practices in business groups’ digital transformations is essential to mitigate potential risks and maximize the positive impact on operational efficiency, supply chain performance, and subsidiary performance. This study aims to examine the consequences and mechanisms through which responsible group digitalization influences business group’s operation management, as manifested in subsidiary performance within the context of the digital economy. Analyzing data from 202 affiliated subsidiaries, we examine the role of HRM collaboration and technological turbulence in facilitating group digitalization. This study enriches the operations management literature and expands the application of ethical and responsible AI practices in digitalization by investigating the relationship between business group digitalization and business operations. Furthermore, this study provides practical implications pertaining to how ethical and responsible practices can guide group digital transformations, business operations and enhance the performance of subsidiaries.