IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v204y2024ics0040162524002452.html
   My bibliography  Save this article

What drives digital innovation cycles? Evidence from manufacturing enterprises in China

Author

Listed:
  • Xie, Weihong
  • Zou, Yukun
  • Guo, Haizhen
  • Li, Zhongshun

Abstract

This paper examined the determinant factors of digital innovation cycles using the data of 356 listed manufacturing enterprises in China from 2013 to 2021. The digital innovation cycles were measured using Data Envelopment Analysis (DEA). Various influencing factors, including digital technologies, organisations, users, and the environment, were analysed based on the Technology Affordance Theory (TAT). The results indicated that digital innovation efficiency in the Chinese manufacturing industry exhibited a fluctuating development trend and had considerable potential for future development. Digital innovation varied across sub-sectors, and the high-knowledge-intensive industries were subject to the greatest weaknesses. Digital innovation also changed significantly across regions in China. Furthermore, digital strategic orientation, executive education level, digital infrastructure, and regional digitalisation level negatively affected digital innovation. However, customer concentration positively affected digital innovation efficiency. Comprehensive guidance and implications for multiple perspectives are presented to enhance digital innovation by manufacturing enterprises.

Suggested Citation

  • Xie, Weihong & Zou, Yukun & Guo, Haizhen & Li, Zhongshun, 2024. "What drives digital innovation cycles? Evidence from manufacturing enterprises in China," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
  • Handle: RePEc:eee:tefoso:v:204:y:2024:i:c:s0040162524002452
    DOI: 10.1016/j.techfore.2024.123449
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162524002452
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.techfore.2024.123449?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Eller, Robert & Alford, Philip & Kallmünzer, Andreas & Peters, Mike, 2020. "Antecedents, consequences, and challenges of small and medium-sized enterprise digitalization," Journal of Business Research, Elsevier, vol. 112(C), pages 119-127.
    2. Annosi, Maria Carmela & Capo, Francesca & Appio, Francesco Paolo & Bedetti, Ivan, 2023. "Unveiling micro-foundations of digital transformation: Cognitive models, routines, and organizational structures in agri-food SMEs," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    3. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    4. Youngjin Yoo & Richard J. Boland & Kalle Lyytinen & Ann Majchrzak, 2012. "Organizing for Innovation in the Digitized World," Organization Science, INFORMS, vol. 23(5), pages 1398-1408, October.
    5. Richard J. Boland & Kalle Lyytinen & Youngjin Yoo, 2007. "Wakes of Innovation in Project Networks: The Case of Digital 3-D Representations in Architecture, Engineering, and Construction," Organization Science, INFORMS, vol. 18(4), pages 631-647, August.
    6. Troise, Ciro & Corvello, Vincenzo & Ghobadian, Abby & O'Regan, Nicholas, 2022. "How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    7. Annarelli, Alessandro & Battistella, Cinzia & Nonino, Fabio & Parida, Vinit & Pessot, Elena, 2021. "Literature review on digitalization capabilities: Co-citation analysis of antecedents, conceptualization and consequences," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    8. Hiteva, Ralitsa & Foxon, Timothy J., 2021. "Beware the value gap: Creating value for users and for the system through innovation in digital energy services business models," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    9. Zhuo, Chengfeng & Chen, Jin, 2023. "Can digital transformation overcome the enterprise innovation dilemma: Effect, mechanism and effective boundary," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    10. Pershina, Raissa & Soppe, Birthe & Thune, Taran Mari, 2019. "Bridging analog and digital expertise: Cross-domain collaboration and boundary-spanning tools in the creation of digital innovation," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    11. Nambisan, Satish & Wright, Mike & Feldman, Maryann, 2019. "The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    12. Montero Guerra, José Manuel & Danvila-del-Valle, Ignacio & Méndez Suárez, Mariano, 2023. "The impact of digital transformation on talent management," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    13. John Qi Dong & Chia-Han Yang, 2019. "Information technology and innovation outcomes: is knowledge recombination the missing link?," European Journal of Information Systems, Taylor & Francis Journals, vol. 28(6), pages 612-626, November.
    14. Mariani, Marcello M. & Nambisan, Satish, 2021. "Innovation Analytics and Digital Innovation Experimentation: The Rise of Research-driven Online Review Platforms," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    15. Ciampi, Francesco & Demi, Stefano & Magrini, Alessandro & Marzi, Giacomo & Papa, Armando, 2021. "Exploring the impact of big data analytics capabilities on business model innovation: The mediating role of entrepreneurial orientation," Journal of Business Research, Elsevier, vol. 123(C), pages 1-13.
    16. Martínez-Caro, Eva & Cegarra-Navarro, Juan Gabriel & Alfonso-Ruiz, Francisco Javier, 2020. "Digital technologies and firm performance: The role of digital organisational culture," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    17. Mina Nasiri & Minna Saunila & Juhani Ukko & Tero Rantala & Hannu Rantanen, 2023. "Shaping Digital Innovation Via Digital-related Capabilities," Information Systems Frontiers, Springer, vol. 25(3), pages 1063-1080, June.
    18. Liu, Yang & Dong, Jiuyu & Ying, Ying & Jiao, Hao, 2021. "Status and digital innovation: A middle-status conformity perspective," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    19. Fernández-Rovira, Cristina & Álvarez Valdés, Jesús & Molleví, Gemma & Nicolas-Sans, Ruben, 2021. "The digital transformation of business. Towards the datafication of the relationship with customers," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    20. Daniel Qi Chen & Yanlin Zhang & Jinghua Xiao & Kang Xie, 2021. "Making Digital Innovation Happen: A Chief Information Officer Issue Selling Perspective," Information Systems Research, INFORMS, vol. 32(3), pages 987-1008, September.
    21. Lu, Hui Ting & Li, Xue & Yuen, Kum Fai, 2023. "Digital transformation as an enabler of sustainability innovation and performance – Information processing and innovation ambidexterity perspectives," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    22. Wang, Qunwei & Hang, Ye & Sun, Licheng & Zhao, Zengyao, 2016. "Two-stage innovation efficiency of new energy enterprises in China: A non-radial DEA approach," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 254-261.
    23. Liu, Jingling & Chen, Yanying & Liang, Feng Helen, 2023. "The effects of digital economy on breakthrough innovations: Evidence from Chinese listed companies," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    24. Johnson, Prince Chacko & Laurell, Christofer & Ots, Mart & Sandström, Christian, 2022. "Digital innovation and the effects of artificial intelligence on firms’ research and development – Automation or augmentation, exploration or exploitation?," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    25. Weihong Xie & Yukun Zou & Haizhen Guo & Yongjian Wang, 2024. "Digital Innovation and Core Competence of Manufacturing Industry: Moderating Role of Absorptive Capacity," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 60(1), pages 185-202, January.
    26. André Hanelt & Sebastian Firk & Björn Hildebrandt & Lutz M. Kolbe, 2021. "Digital M&A, digital innovation, and firm performance: an empirical investigation," European Journal of Information Systems, Taylor & Francis Journals, vol. 30(1), pages 3-26, January.
    27. Radicic, Dragana & Petković, Saša, 2023. "Impact of digitalization on technological innovations in small and medium-sized enterprises (SMEs)," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    28. Xiong Wang & Yazhi Zhu & Xiaohang Ren & Giray Gozgor, 2023. "The impact of digital inclusive finance on the spatial convergence of the green total factor productivity in the Chinese cities," Applied Economics, Taylor & Francis Journals, vol. 55(42), pages 4871-4889, September.
    29. Bahoo, Salman & Cucculelli, Marco & Qamar, Dawood, 2023. "Artificial intelligence and corporate innovation: A review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    30. Wu, Linfei & Sun, Liwen & Chang, Qing & Zhang, Die & Qi, Peixiao, 2022. "How do digitalization capabilities enable open innovation in manufacturing enterprises? A multiple case study based on resource integration perspective," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    31. Wang, Zongrun & Fu, Haiqin & Ren, Xiaohang & Gozgor, Giray, 2024. "Exploring the carbon emission reduction effects of corporate climate risk disclosure: Empirical evidence based on Chinese A-share listed enterprises," International Review of Financial Analysis, Elsevier, vol. 92(C).
    32. Urbinati, Andrea & Bogers, Marcel & Chiesa, Vittorio & Frattini, Federico, 2019. "Creating and capturing value from Big Data: A multiple-case study analysis of provider companies," Technovation, Elsevier, vol. 84, pages 21-36.
    33. Ramzi El-Haddadeh, 2020. "Digital Innovation Dynamics Influence on Organisational Adoption: The Case of Cloud Computing Services," Information Systems Frontiers, Springer, vol. 22(4), pages 985-999, August.
    34. Anna S. Cui & Fang Wu, 2016. "Utilizing customer knowledge in innovation: antecedents and impact of customer involvement on new product performance," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 516-538, July.
    35. Youngjin Yoo & Ola Henfridsson & Kalle Lyytinen, 2010. "Research Commentary ---The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research," Information Systems Research, INFORMS, vol. 21(4), pages 724-735, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cheng, Cong & Wang, Limin, 2022. "How companies configure digital innovation attributes for business model innovation? A configurational view," Technovation, Elsevier, vol. 112(C).
    2. Guo, Bin & Zhang, Jiale & Tan, Ziyan, 2024. "Firm digitalization as strategic response: An integrated model based on the awareness-motivation-capability (AMC) framework," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    3. Xiang, Guopeng & Peng, Mixiang & Tang, Fei & Liu, Yuan, 2024. "Unpacking the impact of entrepreneurial learning on business model innovation in internet startups: Mediating roles of digital capabilities," Technology in Society, Elsevier, vol. 77(C).
    4. Kroh, Julia & Globocnik, Dietfried & Schultz, Carsten & Holdhof, Frederike & Salomo, Søren, 2024. "Micro-foundations of digital innovation capability – A mixed method approach to develop and validate a multi-dimensional measurement instrument," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    5. Zahra, Shaker A. & Liu, Wan & Si, Steven, 2023. "How digital technology promotes entrepreneurship in ecosystems," Technovation, Elsevier, vol. 119(C).
    6. Zhu, Xiumei & Li, Yue, 2023. "The use of data-driven insight in ambidextrous digital transformation: How do resource orchestration, organizational strategic decision-making, and organizational agility matter?," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    7. Liu, Yang & Dong, Jiuyu & Mei, Liang & Shen, Rui, 2023. "Digital innovation and performance of manufacturing firms: An affordance perspective," Technovation, Elsevier, vol. 119(C).
    8. Siachou, Evangelia & Vrontis, Demetris & Trichina, Eleni, 2021. "Can traditional organizations be digitally transformed by themselves? The moderating role of absorptive capacity and strategic interdependence," Journal of Business Research, Elsevier, vol. 124(C), pages 408-421.
    9. Li, Zhongshun & Xie, Weihong & Wang, Zhong & Wang, Yongjian & Huang, Danyu, 2023. "Antecedent configurations and performance of business models of intelligent manufacturing enterprises," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    10. Satı, Zümrüt Ecevit, 2024. "Comparison of the criteria affecting the digital innovation performance of the European Union (EU) member and candidate countries with the entropy weight-TOPSIS method and investigation of its importa," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    11. Su, Jingqin & Zhang, Yajie & Wu, Xianyun, 2023. "How market pressures and organizational readiness drive digital marketing adoption strategies' evolution in small and medium enterprises," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    12. Fang, Xubing & Liu, Maotao, 2024. "How does the digital transformation drive digital technology innovation of enterprises? Evidence from enterprise's digital patents," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    13. Pujadas, Roser & Valderrama, Erika & Venters, Will, 2024. "The value and structuring role of web APIs in digital innovation ecosystems: The case of the online travel ecosystem," Research Policy, Elsevier, vol. 53(2).
    14. Chenglei Xu & Shuxin Zhu & Boru Yang & Bin Miao & Yi Duan, 2023. "A Review of Policy Framework Research on Promoting Sustainable Transformation of Digital Innovation," Sustainability, MDPI, vol. 15(9), pages 1-26, April.
    15. Laudien, Sven M. & Reuter, Ute & Sendra Garcia, Francisco Javier & Botella-Carrubi, Dolores, 2024. "Digital advancement and its effect on business model design: Qualitative-empirical insights," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    16. Li, Ganglei & Shao, Yunfei, 2023. "How do top management team characteristics affect digital orientation? Exploring the internal driving forces of firm digitalization," Technology in Society, Elsevier, vol. 74(C).
    17. Santos, Susana C. & Liguori, Eric W. & Garvey, Erin, 2023. "How digitalization reinvented entrepreneurial resilience during COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    18. Mina Nasiri & Minna Saunila & Juhani Ukko & Tero Rantala & Hannu Rantanen, 2023. "Shaping Digital Innovation Via Digital-related Capabilities," Information Systems Frontiers, Springer, vol. 25(3), pages 1063-1080, June.
    19. Merín-Rodrigáñez, Joan & Dasí, Àngels & Alegre, Joaquín, 2024. "Digital transformation and firm performance in innovative SMEs: The mediating role of business model innovation," Technovation, Elsevier, vol. 134(C).
    20. Zhuo, Chengfeng & Chen, Jin, 2023. "Can digital transformation overcome the enterprise innovation dilemma: Effect, mechanism and effective boundary," Technological Forecasting and Social Change, Elsevier, vol. 190(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:204:y:2024:i:c:s0040162524002452. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.