How does facial recognition as an urban safety technology affect firm performance? The moderating role of the home country's government subsidies. (November 2021)

• Record Type: Journal Article
• Authors: Shao, Xue-Feng; Li, Yi; Suseno, Yuliani; Li, Rita Yi Man; Gouliamos, Kostas; Yue, Xiao-Guang; Luo, Yumeng
• Is Part Of: Safety science. Volume 143(2021)
• Publication Date: 2021-11
• Subjects: Facial recognition technology -- Urban safety risks -- International and domestic sales performance -- Rent-seeking theory -- Government subsidies; Industrial accidents -- Periodicals; Accident Prevention -- Periodicals; Safety -- Periodicals; Travail -- Accidents -- Périodiques; 363.11
• DOI: 10.1016/j.ssci.2021.105434
• Languages: English
• ISSNs: 0925-7535

Abstract

Highlights: Facial recognition technology's safety challenges affect its business adoption. Deep learning methods have improved the safety and accuracy of facial recognition. Facial recognition's performance can affect business's foreign sales performance. Its effect is less significant for domestic sales. Home country's subsidies improves companies' domestic performance. Abstract: The rapid progress of facial recognition technology (FRT), aided by technological advancements in artificial intelligence, is transforming urban life. However, FRT also presents challenges and imposes urban safety risks, such as cybersecurity threats and privacy concerns. Considering the importance of FRT as smart urban safety technology, this study utilises the rent-seeking theory to analyse the relationship between a firm's level of FRT capability and its international and domestic sales performances. We explored the effect of the home country's government subsidies as a contextual factor. We analysed 33 listed firms from nine countries – firms that are involved in artificial intelligence, based on secondary data from 2014 to 2019. Our regression analyses revealed mixed empirical results in that while the firm's FRT capability negatively influenced its international sales performance, its positive effect on domestic sales performance was partially supported. Further, we found that the home country's government subsidies negatively moderated the relationship between a firm's FRT capability and its domestic sales performance.