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The role of government support on E-commerce and firm innovation during pandemic crisis

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  • Chundakkadan, Radeef
  • Sasidharan, Subash

Abstract

The aim of this study is three-fold: first, to examine the relationship between government support and E-commerce adoption. Second, to investigate the nexus between government support and firm innovation. Third, to explore the relation of firm performance with E-commerce adoption and innovation. Using firm-level data from 31 countries during the time of COVID-19 pandemic, we find both E-commerce adoption and innovation are positively associated with government support. Further, we also find that such firms register significantly higher sales growth. The result remains consistent even after addressing the endogeneity issue. These results hold for the subsample of SMEs as well.

Suggested Citation

  • Chundakkadan, Radeef & Sasidharan, Subash, 2023. "The role of government support on E-commerce and firm innovation during pandemic crisis," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 904-913.
    • Handle: RePEc:eee:ecanpo:v:78:y:2023:i:c:p:904-913
    DOI: 10.1016/j.eap.2023.04.021
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    3. Gao, Jing & Zeng, Yiwu & Liu, Min, 2024. "Policy interventions and market innovation in rural China: Empirical evidence from Taobao villages," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1411-1429.
    4. Ruiguang Ma & Jiangbin Yin & Xiaoyan Huang, 2023. "Effect of the Strategic Emerging Industry Support Program on Corporate Innovation among Listed Companies in China," Sustainability, MDPI, vol. 15(24), pages 1-18, December.

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    More about this item

    Keywords

    E-commerce; Innovation; Government support; Firm performance;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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