# The data-driven decision-making, sustainable value creation, and international firm performance: Micro-level evidence based on AI language models

## TL;DR

This study shows how data-driven decision-making improves international firm performance through sustainable value creation.

## Contribution

A framework is developed to explain how DDDM enhances firm performance via sustainability dimensions.

## Key findings

- DDDM positively impacts international firm performance.
- The impact is amplified by market competition, foreign shareholding, and state ownership.
- Sustainable value creation occurs through pollution prevention, green innovation, and sustainability disclosure.

## Abstract

Data-driven decision-making (DDDM) has become integral to managerial and organizational processes in the era of digitalization and internationalization. This study explores the impact of DDDM on international firm performance. Leveraging AI language models, specifically BERT and ChatGLM2-6B, to quantify DDDM, we find that DDDM positively impacts international firm performance. To uncover the mechanisms underlying this correlation, we develop a framework explaining how DDDM creates sustainable value for firms, thereby enhancing international firm performance across four dimensions: pollution prevention (current internal), green innovation (future internal), sustainability information disclosure (current external), and sustainability vision co-creation (future external). Additionally, this study reveals that the positive impact of DDDM on international firm performance is amplified by higher market competition, greater foreign shareholding, and state ownership.