Digitalization of the Business Environment and Innovation Efficiency of Chinese ICT Firms
Pages 1 - 25
Abstract
This study investigates how the digital business environment affects firms' innovation input variables. It was discovered that digitization leads to ongoing corporate environment optimization, which improves the effectiveness of innovation. One of the institutional environment factors, digitalization, increases the redundancy of government subsidies on businesses' investments in innovation. It also helps to eliminate duplication in innovation investment through the financial environment and the protection of legal rights. With increasing marketization in the informal institutional framework, the degree of R&D investment redundancy lowers while R&D human resource investment redundancy grows. Digitization not only lowers the grade of innovation, but it also has a negative association with the duplicate nature of commercial R&D investments. The authors' research combines institutional environment theory and digital development to establish a new empirical foundation for corporate development in order to boost innovation efficiency.
References
[1]
Alquist, R., Chabot, B. R., & Yamarthy, R. (2022). The price of property rights: Institutions, finance, and economic growth. Journal of International Economics, 137, 103594.
[2]
Amouri, A., Festa, G., Shams, S. M. R., Sakka, G., & Rossi, M. (2021). Technological propensity, financial constraints, and entrepreneurial limits in young entrepreneurs’ social business enterprises: The tunisian experience. Technological Forecasting and Social Change, 173, 121126.
[3]
Ancillai, C., Sabatini, A., Gatti, M., & Perna, A. (2023). Digital technology and business model innovation: A systematic literature review and future research agenda. Technological Forecasting and Social Change, 188, 122307.
[4]
Andersson, M., & Xiao, J. (2016). Acquisitions of start-ups by incumbent businesses: A market selection process of “high-quality” entrants? Research Policy, 45(1), 272–290.
[5]
Andreeva, T., Garanina, T., Sáenz, J., Aramburu, N., & Kianto, A. (2021). Does country environment matter in the relationship between intellectual capital and innovation performance? Journal of Business Research, 136, 263–273.
[6]
Andries, P., Clarysse, B., & Costa, S. (2021). Technology ventures’ engagement of external actors in the search for viable market applications: On the relevance of Technology Broadcasting and Systematic Validation. Journal of Business Venturing, 36(6), 106145.
[7]
Bai, Y., Song, S., Jiao, J., & Yang, R. (2019). The impacts of government R&D subsidies on green innovation: Evidence from Chinese energy-intensive firms. Journal of Cleaner Production, 233, 819–829.
[8]
Boateng, E., Agbola, F. W., & Mahmood, A. (2021). Foreign aid volatility and economic growth in Sub-Saharan Africa: Does institutional quality matter? Economic Modelling, 96, 111–127.
[9]
Böttcher, T. P., Weking, J., Hein, A., Böhm, M., & Krcmar, H. (2022). Pathways to digital business models: The connection of sensing and seizing in business model innovation. The Journal of Strategic Information Systems, 31(4), 101742.
[10]
Boudreau, K. J., Jeppesen, L. B., & Miric, M. (2022). Profiting from digital innovation: Patents, copyright and performance. Research Policy, 51(5), 104477.
[11]
Brousseau, E., Garrouste, P., & Raynaud, E. (2011). Institutional changes: Alternative theories and consequences for institutional design. Journal of Economic Behavior & Organization, 79(1), 3–19.
[12]
Chakravarty, S. (2022). Resource constrained innovation in a technology intensive sector: Frugal medical devices from manufacturing firms in South Africa. Technovation, 112, 102397.
[13]
Chang, P.-L., & Chen, Y. (2021). Informal institutions and comparative advantage of South-based MNEs: Theory and evidence. Journal of Development Economics, 148, 102566.
[14]
Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), 429–444.
[15]
Chen, H., & Tian, Z. (2022). Environmental uncertainty, resource orchestration and digital transformation: A fuzzy-set QCA approach. Journal of Business Research, 139, 184–193.
[16]
Chen, S.-S., Kao, W.-C., & Wang, Y. (2021). Tax policy and innovation performance: Evidence from enactment of the alternative simplified credit. Journal of Banking & Finance, 125, 106081.
[17]
Chen, Z. (2022). Research on Internet Security Situation Awareness Prediction Technology Based on Improved RBF Neural Network Algorithm. Journal of Computational and Cognitive Engineering, 1(3), 103–108.
[18]
Choi, D. Y., & Perez, A. (2007). Online piracy, innovation, and legitimate business models. Technovation, 27(4), 168–178.
[19]
Choi, K. H., & Kwon, G. H. (2023). Strategies for sensing innovation opportunities in smart grids: In the perspective of interactive relationships between science, technology, and business. Technological Forecasting and Social Change, 187, 122210.
[20]
Contractor, F. J., Dangol, R., Nuruzzaman, N., & Raghunath, S. (2020). How do country regulations and business environment impact foreign direct investment (FDI) inflows? International Business Review, 29(2), 101640.
[21]
Cull, R., & Xu, L. C. (2005). Institutions, ownership, and finance: The determinants of profit reinvestment among Chinese firms. Journal of Financial Economics, 77(1), 117–146.
[22]
Dahabiyeh, L., & Constantinides, P. (2022). Legitimating digital technologies in industry exchange fields: The case of digital signatures. Information and Organization, 32(1), 100392.
[23]
Dai, X., & Chapman, G. (2022). R&D tax incentives and innovation: Examining the role of programme design in China. Technovation, 113, 102419.
[24]
Delorme, D. (2023). The role of proximity in the design of innovation intermediaries’ business models. Technological Forecasting and Social Change, 188, 122246.
[25]
Devi, D., Namasudra, S., & Kadry, S. (2020). A Boosting-Aided Adaptive Cluster-Based Undersampling Approach for Treatment of Class Imbalance Problem. International Journal of Data Warehousing and Mining, 16(3), 60–86.
[26]
Ding, J., Liu, B., & Shao, X. (2022). Spatial effects of industrial synergistic agglomeration and regional green development efficiency: Evidence from China. Energy Economics, 112, 106156.
[27]
Ding, J., Wang, J., Liu, B., & Peng, L. (2022). ‘Guidance’ or ‘Misleading’? The government subsidy and the choice of enterprise innovation strategy. Frontiers in Psychology, 13, 1005563. https://www.frontiersin.org/articles/10.3389/fpsyg.2022.1005563. 36267081.
[28]
Do, Q., Mishra, N., Colicchia, C., Creazza, A., & Ramudhin, A. (2022). An extended institutional theory perspective on the adoption of circular economy practices: Insights from the seafood industry. International Journal of Production Economics, 247, 108400.
[29]
Dong, C., Zhang, Y., Li, Y., Lee, E., & Chen, L. (2023). What makes nonprofit organizations (NPOs) talk transparently about their connections with businesses on Twitter? Insights from nonprofit-business network portfolios and resource dependencies. Public Relations Review, 49(2), 102314.
[30]
Fareed, Z., Abbas, S., Madureira, L., & Wang, Z. (2022). Green stocks, crypto asset, crude oil and COVID19 pandemic: Application of rolling window multiple correlation. Resources Policy, 79, 102965. 36068839.
[31]
Fini, R., Perkmann, M., Kenney, M., & Maki, K. M. (2023). Are public subsidies effective for university spinoffs? Evidence from SBIR awards in the University of California system. Research Policy, 52(1), 104662.
[32]
Fried, H. O., Lovell, C. A. K., Schmidt, S. S., & Yaisawarng, S. (2002). Accounting for Environmental Effects and Statistical Noise in Data Envelopment Analysis. Journal of Productivity Analysis, 17(1), 157–174.
[33]
Gaganis, C., Pasiouras, F., & Voulgari, F. (2019). Culture, business environment and SMEs’ profitability: Evidence from European Countries. Economic Modelling, 78, 275–292.
[34]
Ghezzi, A., & Cavallo, A. (2020). Agile Business Model Innovation in Digital Entrepreneurship: Lean Startup Approaches. Journal of Business Research, 110, 519–537.
[35]
Ghosh, S., Hughes, M., Hodgkinson, I., & Hughes, P. (2021). Digital transformation of industrial businesses: A dynamic capability approach. Technovation, 102414.
[36]
Giachetti, C., & Li Pira, S. (2022). Catching up with the market leader: Does it pay to rapidly imitate its innovations? Research Policy, 51(5), 104505.
[37]
Giachetti, C., & Mensah, D. T. (2023). Catching-up during technological windows of opportunity: An industry product categories perspective. Research Policy, 52(2), 104677.
[38]
Gross, T., & Klein, P. (2022). Optimal tax policy and endogenous growth through innovation. Journal of Public Economics, 209, 104645.
[39]
Guo, C., & Zhu, J. (2017). Non-cooperative two-stage network DEA model: Linear vs. parametric linear. European Journal of Operational Research, 258(1), 398–400.
[40]
Guo, D., Guo, Y., & Jiang, K. (2022). Government R&D support and firms’ access to external financing: Funding effects, certification effects, or both? Technovation, 115, 102469.
[41]
Gutub, A. (n.d.). Boosting image watermarking authenticity spreading secrecy from counting-based secret-sharing. CAAI Transactions on Intelligence Technology. 10.1049/cit2.12093
[42]
He, E., Jacob, M., Vashishtha, R., & Venkatachalam, M. (2022). Does differential taxation of short-term relative to long-term capital gains affect long-term investment? Journal of Accounting and Economics, 101479(1), 101479.
[43]
Helfat, C. E., & Raubitschek, R. S. (2018). Dynamic and integrative capabilities for profiting from innovation in digital platform-based ecosystems. Research Policy, 47(8), 1391–1399.
[44]
Hoskins, J. D., & Carson, S. J. (2022). Industry conditions, market share, and the firm’s ability to derive business-line profitability from diverse technological portfolios. Journal of Business Research, 149, 178–192.
[45]
Hu, J., Jiang, H., & Holmes, M. (2019). Government subsidies and corporate investment efficiency: Evidence from China. Emerging Markets Review, 41, 100658.
[46]
Jia, Y., Su, J., Cui, L., Wu, L., & Hua Tan, K. (2023). Platform business model innovation in the digitalization era: A “driver-process-result” perspective. Journal of Business Research, 160, 113818.
[47]
Jia, Z., Tiwari, S., Zhou, J., Farooq, M. U., & Fareed, Z. (2023). Asymmetric nexus between Bitcoin, gold resources and stock market returns: Novel findings from quantile estimates. Resources Policy, 81, 103405.
[48]
Jiang, Y., Yan, X., Yang, Z., & Subramanian, U. (2023). Returnee employees or independent innovation? The innovation strategy of latecomer countries: Evidence from high-tech enterprises in China. Technological Forecasting and Social Change, 192, 122591.
[49]
Jin, F., Cai, Y., Zhou, L., & Ding, T. (2023). Regret-rejoice two-stage multiplicative DEA models-driven cross-efficiency evaluation with probabilistic linguistic information. Omega, 117, 102839.
[50]
Karagiannis, D., Buchmann, R. A., & Utz, W. (2022). The OMiLAB Digital Innovation environment: Agile conceptual models to bridge business value with Digital and Physical Twins for Product-Service Systems development. Computers in Industry, 138, 103631.
[51]
Karami, M., Baber, W. W., & Ojala, A. (2022). The effectual process of business model innovation for seizing opportunities in frontier markets. Technovation, 117, 102595.
[52]
Khan, Z., Ali, S., Dong, K., & Li, R. Y. M. (2021). How does fiscal decentralization affect CO2 emissions? The roles of institutions and human capital. Energy Economics, 94, 105060.
[53]
Khan, Z., Badeeb, R. A., & Nawaz, K. (2022). Natural resources and economic performance: Evaluating the role of political risk and renewable energy consumption. Resources Policy, 78, 102890.
[54]
Khan, Z., Hossain, M. R., Badeeb, R. A., & Zhang, C. (2023). Aggregate and disaggregate impact of natural resources on economic performance: Role of green growth and human capital. Resources Policy, 80, 103103.
[55]
Khan, Z., Hussain, M., Shahbaz, M., Yang, S., & Jiao, Z. (2020). Natural resource abundance, technological innovation, and human capital nexus with financial development: A case study of China. Resources Policy, 65, 101585.
[56]
Kraus, S., Durst, S., Ferreira, J. J., Veiga, P., Kailer, N., & Weinmann, A. (2022). Digital transformation in business and management research: An overview of the current status quo. International Journal of Information Management, 63, 102466.
[57]
Laïfi, A., & Josserand, E. (2016). Legitimation in practice: A new digital publishing business model. Journal of Business Research, 69(7), 2343–2352.
[58]
Li, S., Gao, L., Han, C., Gupta, B., Alhalabi, W., & Almakdi, S. (2023). Exploring the effect of digital transformation on Firms’ innovation performance. Journal of Innovation & Knowledge, 8(1), 100317.
[59]
Lim, C. Y., Wang, J., & Zeng, C. (2018). China’s “Mercantilist” Government Subsidies, the Cost of Debt and Firm Performance. Journal of Banking & Finance, 86, 37–52.
[60]
Lim, S., & Zhu, J. (2016). A note on two-stage network DEA model: Frontier projection and duality. European Journal of Operational Research, 248(1), 342–346.
[61]
Liu, B., Wang, J., Li, R. Y. M., Peng, L., & Mi, L. (2022). Achieving carbon neutrality–the role of heterogeneous environmental regulations on urban green innovation. Frontiers in Ecology and Evolution, 10, 923354.
[62]
Liu, B., Zheng, K., Zhu, M., Wu, F., & Zhao, X. (2023). Towards sustainability: The impact of industrial synergistic agglomeration on the efficiency of regional green development. Environmental Science and Pollution Research International, 1–13. 37391560.
[63]
Liu, X., Li, H., Sun, Y., & Wang, C. A. (2022). High-speed railway and urban productivity disparities. Growth and Change, 53(2), 680–701.
[64]
Long, X., & Pelloni, A. (2017). Factor income taxation in a horizontal innovation model. Journal of Public Economics, 154, 137–159.
[65]
Mann, G., Karanasios, S., & Breidbach, C. F. (2022). Orchestrating the digital transformation of a business ecosystem. The Journal of Strategic Information Systems, 31(3), 101733.
[66]
Marcon, É., Le Dain, M.-A., & Frank, A. G. (2022). Designing business models for Industry 4.0 technologies provision: Changes in business dimensions through digital transformation. Technological Forecasting and Social Change, 185, 122078.
[67]
Miric, M., Boudreau, K. J., & Jeppesen, L. B. (2019). Protecting their digital assets: The use of formal & informal appropriability strategies by App developers. Research Policy, 48(8), 103738.
[68]
Mithani, M. A. (2023). Scaling digital and non-digital business models in foreign markets: The case of financial advice industry in the United States. Journal of World Business, 58(4), 101457.
[69]
Möller, K., Nenonen, S., & Storbacka, K. (2020). Networks, ecosystems, fields, market systems? Making sense of the business environment. Industrial Marketing Management, 90, 380–399.
[70]
Moshirian, F., Tian, X., Zhang, B., & Zhang, W. (2021). Stock market liberalization and innovation. Journal of Financial Economics, 139(3), 985–1014.
[71]
Mota, J., Santos, J. N., & Alencar, R. (2023). Intertwining innovation and business networks for sustainable agricultural systems: A case study of carbon-neutral beef. Technological Forecasting and Social Change, 190, 122429.
[72]
Namasudra, S., & Roy, P. (2018). PpBAC: Popularity Based Access Control Model for Cloud Computing. [JOEUC]. Journal of Organizational and End User Computing, 30(4), 14–31.
[73]
Nathan, M., & Rosso, A. (2015). Mapping digital businesses with big data: Some early findings from the UK. Research Policy, 44(9), 1714–1733.
[74]
Neumann, N., Tucker, C. E., & Whitfield, T. (2019). Frontiers: How Effective Is Third-Party Consumer Profiling? Evidence from Field Studies. Marketing Science, 38(6), 918–926.
[75]
Ozen, O., & Ozturk-Kose, E. (2023). Management innovation: The role of internal, external factors, and business group affiliation. Journal of Business Research, 164, 113964.
[76]
Pasinetti, L. L. (2021). Economic theory and institutions. Structural Change and Economic Dynamics, 56, 438–442.
[77]
Prajogo, D. I. (2016). The strategic fit between innovation strategies and business environment in delivering business performance. International Journal of Production Economics, 171, 241–249.
[78]
Qiang, C. Z., Wang, H., & Xu, L. C. (2021). Ownership, Enforcement, and the Effects of Business Environment. Journal of Government and Economics, 2, 100007.
[79]
Reyes, J.-D., Roberts, M., & Xu, L. C. (2021). The heterogeneous growth effects of the business environment: Firm-level evidence for a global sample of cities. China Economic Quarterly International, 1(1), 15–28.
[80]
Ribeiro, B., & Shapira, P. (2020). Private and public values of innovation: A patent analysis of synthetic biology. Research Policy, 49(1), 103875. 32015589.
[81]
Rosado-Cubero, A., Hernández, A., Blanco Jiménez, F. J., & Freire-Rubio, T. (2023). Promotion of entrepreneurship through business incubators: Regional analysis in Spain. Technological Forecasting and Social Change, 190, 122419.
[82]
Scherrer, S., & Perrig, A. (2021). Security, Anonymity, Privacy, and Trust. In Toy, M. (Ed.), Future Networks, Services and Management: Underlay and Overlay, Edge, Applications, Slicing, Cloud, Space, AI/ML, and Quantum Computing (pp. 367–381). Springer International Publishing.
[83]
Shin, D., & Park, Y. J. (2019). Role of fairness, accountability, and transparency in algorithmic affordance. Computers in Human Behavior, 98, 277–284.
[84]
Şimşek, T., Öner, M. A., Kunday, Ö., & Olcay, G. A. (2022). A journey towards a digital platform business model: A case study in a global tech-company. Technological Forecasting and Social Change, 175, 121372.
[85]
Struckell, E., Ojha, D., Patel, P. C., & Dhir, A. (2022). Strategic choice in times of stagnant growth and uncertainty: An institutional theory and organizational change perspective. Technological Forecasting and Social Change, 182, 121839.
[86]
Teece, D. J. (2018). Profiting from innovation in the digital economy: Enabling technologies, standards, and licensing models in the wireless world. Research Policy, 47(8), 1367–1387.
[87]
Varadarajan, R. (2020). Customer information resources advantage, marketing strategy and business performance: A market resources based view. Industrial Marketing Management, 89, 89–97.
[88]
Varriale, V., Cammarano, A., Michelino, F., & Caputo, M. (2021). The role of supplier innovation performance and strategies on the smartphone supply market. European Management Journal.
[89]
Vo, X. V., Nguyen, T. L. A., Tuan, L. Q., Luu, H. N., & Vu, K. T. (2020). Local business environment, domestic CEOs and firm performance in a transitional economy: Empirical evidence from Vietnam. Economic Analysis and Policy, 66, 236–249.
[90]
Wang, C. A., Liu, X., Li, H., & Yang, C. (2023). Analyzing the impact of low-carbon city pilot policy on enterprises’ labor demand: Evidence from China. Energy Economics, 124(8), 106676.
[91]
Wang, C. A., Wu, J., & Liu, X. (2022). High-speed rail and urban innovation: Based on the perspective of labor mobility. Journal of the Asia Pacific Economy, 1–26.
[92]
Wang, C. A., Wu, J., Ruan, J., & Liu, X. (2022). Language differences, cultural identity, and innovation. Growth and Change, 53(4), 1716–1736.
[93]
Wang, R., Xue, Y., & Zheng, W. (2021). Does high external debt predict lower economic growth? Role of sovereign spreads and institutional quality. Economic Modelling, 103, 105591.
[94]
Wang, X., Zou, H., Zheng, Y., & Jiang, Z. (2019). How will different types of industry policies and their mixes affect the innovation performance of wind power enterprises? Based on dual perspectives of regional innovation environment and enterprise ownership. Journal of Environmental Management, 251, 109586. 31563050.
[95]
Wani, A. S. R., & Khaliq, R. (2021). SDN-based intrusion detection system for IoT using deep learning classifier (IDSIoT-SDL). CAAI Transactions on Intelligence Technology, 6(3), 281–290.
[96]
Wiredu, G. O., Boateng, K. A., & Effah, J. K. (2021). The platform executive: Technology shaping of executive cognition during digital service innovation. Information & Management, 58(4), 103469.
[97]
Wong, W. P., Sinnandavar, C. M., & Soh, K.-L. (2021). The relationship between supply environment, supply chain integration and operational performance: The role of business process in curbing opportunistic behaviour. International Journal of Production Economics, 232, 107966.
[98]
Yang, M., & Han, C. (2021). Stimulating innovation: Managing peer interaction for idea generation on digital innovation platforms. Journal of Business Research, 125, 456–465.
[99]
Yang, Y., Jia, F., Chen, L., Wang, Y., & Xiong, Y. (2021). Adoption timing of OHSAS 18001 and firm performance: An institutional theory perspective. International Journal of Production Economics, 231, 107870.
[100]
Yu, F., Du, H., Li, X., & Cao, J. (2023). Enterprise digitalization, business strategy and subsidy allocation: Evidence of the signaling effect. Technological Forecasting and Social Change, 190, 122472.
[101]
Yu, L., Tang, X., & Huang, X. (2023). Does the business environment promote entrepreneurship?—Evidence from the China Household Finance Survey. China Economic Review, 79, 101977.
[102]
Zafari, K., Biggemann, S., & Garry, T. (2023). Development of business-to-business relationships in turbulent environments. Industrial Marketing Management, 111, 1–18.
[103]
Zhang, H., Liu, Q., & Wei, Y. (2023). Digital product imports and export product quality: Firm-level evidence from China. China Economic Review, 79, 101981.
[104]
Zhang, J., & Guan, J. (2018). The time-varying impacts of government incentives on innovation. Technological Forecasting and Social Change, 135, 132–144.
[105]
Zhang, X., He, P., Liu, X., & Lu, T. (2023). The effect of low-carbon transportation pilot policy on carbon performance: Evidence from China. Environmental Science and Pollution Research International, 30(19), 1–29. 36879091.
[106]
Zhang, Y., Ma, X., Pang, J., Xing, H., & Wang, J. (2023). The impact of digital transformation of manufacturing on corporate performance—The mediating effect of business model innovation and the moderating effect of innovation capability. Research in International Business and Finance, 64, 101890.
[107]
Zhao, X., Yi, C., Zhan, Y., & Guo, M. (2022). Business environment distance and innovation performance of EMNEs: The mediating effect of R&D internationalization. Journal of Innovation & Knowledge, 7(4), 100241.
Index Terms
- Digitalization of the Business Environment and Innovation Efficiency of Chinese ICT Firms
Index terms have been assigned to the content through auto-classification.
Recommendations
Environmental Practices, Digitalization, and Green Innovation in Multinational Firms
This study examines the diverse environmental practices of multinational firms, the degree of digitalization among parent firms, and green innovation. Using data from multinational listed firms from 2007 to 2018 as a sample, this article uses regression ...
Electronic business adoption by European firms: a cross-country assessment of the facilitators and inhibitors
Managing e-business transformationIn this study, we developed a conceptual model for studying the adoption of electronic business (e-business or EB) at the firm level, incorporating six adoption facilitators and inhibitors, based on the technology-organization-environment theoretical ...
A Study on the Relationship Between Government Regulations and Innovation Efficiency in Information and Communication Technology (ICT) Industry
Although government regulations have a significant impact on innovation, research on the impact of government regulations on innovation efficiency has yet to be sufficiently uncovered. In this study, the effects of government regulations on innovation ...
Comments
Information & Contributors
Information
Published In
Copyright © 2023.
Publisher
IGI Global
United States
Publication History
Published: 14 August 2023
Author Tags
Qualifiers
- Article
Contributors
Other Metrics
Bibliometrics & Citations
Bibliometrics
Article Metrics
- 0Total Citations
- 0Total Downloads
- Downloads (Last 12 months)0
- Downloads (Last 6 weeks)0
Reflects downloads up to 17 Oct 2024
Other Metrics
Citations
View Options
View options
Get Access
Login options
Check if you have access through your login credentials or your institution to get full access on this article.
Sign in