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Does digital innovation help firms navigate the COVID-19 pandemic? Evidence from China

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  • Huang, Hao
  • Zhao, Ling

Abstract

Using manually collected data, we explore the effects of digital innovation (DI) on firm resilience during the COVID-19 pandemic. The findings show that during the pandemic, firms with high levels of DI performed significantly better than others. This effect was more pronounced for firms with high exposure to COVID-19 or geographically distant supply chains. Further, mechanism analysis finds that DI mitigated the negative impact of COVID-19 by reducing internal coordination costs and improving the speed of external supply chain response. Additional analysis shows that the more firms with strong DI capabilities, the faster the economic recovery after the pandemic.

Suggested Citation

  • Huang, Hao & Zhao, Ling, 2024. "Does digital innovation help firms navigate the COVID-19 pandemic? Evidence from China," Emerging Markets Review, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:ememar:v:62:y:2024:i:c:s1566014124000669
    DOI: 10.1016/j.ememar.2024.101171
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    More about this item

    Keywords

    Digital innovation; COVID-19 pandemic; Firm performance;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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