PurposeThere is currently a gap in the research regarding the effect of corporate culture on corporate innovation capability. Based on cultural hierarchy theory, in this paper, we explore the interactions between cultural factors and innovation capability in emerging market firms (EMFs). We discuss the mechanisms by which incentive, institutional, and vibrant corporate cultures influence corporate innovation capability. Furthermore, we consider the transformation of artificial general intelligence (AGI) from a tool into a colleague and how this affects the relationship between corporate culture and innovation capability.Design/methodology/approachAn online questionnaire was distributed to corporate employees to explore their attitudes towards AGI and corporate culture. In total, 523 valid questionnaires were empirically analysed using partial least squares structural equation modelling and multigroup analysis (MGA).FindingsThe results showed that incentive culture, institutional culture, and vibrant culture had a positive impact on corporate innovation capability. MGA revealed significant differences between employees who considered AGI a tool and those who considered it a colleague. Employees who treated AGI as a colleague were likely to be influenced by a vibrant culture, whereas employees who treated AGI as a tool were likely to be influenced by an incentive or institutional culture.Originality/valueBuilding on cultural hierarchy theory, our study provides a new theoretical framework to enrich current research on the relationship between corporate culture and AGI. The study can help EMF managers adjust incentive and institutional cultures before AGI shifts from being a tool to a colleague and negatively impacts innovation capacity.
