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The impact-mechanism of “Internet +” on the innovation performance of traditional enterprises: Empirical evidence from China

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  • Jiang, Renai
  • Saeed, Muhammad
  • Yang, Shenghao
  • Saqib, Shahab E.

Abstract

Most traditional industries in China have reached a mature or declining stage, and their core competitiveness has declined compared to developing industries in the recent past. The paper studied the impact-mechanism of “Internet +” and verified its impacts on enterprise innovation performance. The data of 1040 traditional Chinese enterprises from 2011 to 2019 listed on the Shanghai and Shenzhen stock exchange were obtained from their annual reports by text-mining method. The purpose of these enterprises' selection was their present transformation of traditional Chinese enterprises from resource-driven to innovation-driven development strategy. The study employed poison-regression model to investigate the relationship of independent variables with innovation performance of these firms. In addition, we employed bootstrap method for validity of indirect effect. Based on the empirical evidence, we found that the “Internet +” significantly affects the innovation performance of traditional Chinese enterprises by influencing the organization's innovation elements, corporate governance structure, and corporate culture. The results do not change when we apply alternative variables in the model, which shows strong robustness. The findings of this research will help promote the deep integration of the internet in the real economy and promote more effective implementation of the “Internet +” national strategy in traditional enterprises.

Suggested Citation

  • Jiang, Renai & Saeed, Muhammad & Yang, Shenghao & Saqib, Shahab E., 2023. "The impact-mechanism of “Internet +” on the innovation performance of traditional enterprises: Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    • Handle: RePEc:eee:tefoso:v:186:y:2023:i:pa:s0040162522006503
    DOI: 10.1016/j.techfore.2022.122129
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    More about this item

    Keywords

    “Internet +”; Impact-mechanism; Traditional enterprises; Innovation performance; China;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations

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