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Study on the Impact and Mechanism of Industrial Internet Pilot on Digital Transformation of Manufacturing Enterprises

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  • Jianjia He

    (Business School, University of Shanghai for Science and Technology, Shanghai 200093, China)

  • Xuchen Liu

    (Business School, University of Shanghai for Science and Technology, Shanghai 200093, China)

Abstract

In the era of digital economy, Industrial Internet is promoting the deep integration of manufacturing industry and the Internet through the new generation of information technology, which has become a new driving force to encourage the development of digital transformation of manufacturing enterprises. In this paper, we use the China Industrial Internet Pilot Demonstration Project as a proposed natural experiment to assess the impact and mechanism of action of the Industrial Internet pilot on the digital transformation of manufacturing enterprises using score propensity matching and double-difference methods based on panel data of annual reports of manufacturing listed companies from 2012 to 2020. The empirical results show that the Industrial Internet has a significant empowering effect on the digital transformation of manufacturing enterprises and positively promotes the digital transformation of manufacturing enterprises through the mechanism of digitalization, technology absorption, talent introduction, and innovation integration of industry cohort enterprises; the heterogeneity analysis shows that the empowering effect of the Industrial Internet is more substantial for technology-intensive enterprises, diversified business enterprises, and enterprises in the eastern region. This study provides empirical evidence for understanding the digital transformation of manufacturing enterprises enabled by the Industrial Internet. It provides theoretical support for promoting the development of Industrial Internet projects and achieving sustainable development of the manufacturing industry.

Suggested Citation

  • Jianjia He & Xuchen Liu, 2023. "Study on the Impact and Mechanism of Industrial Internet Pilot on Digital Transformation of Manufacturing Enterprises," Sustainability, MDPI, vol. 15(10), pages 1-21, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:7872-:d:1144589
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    References listed on IDEAS

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    2. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 81032, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 82423, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
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    Cited by:

    1. Yan Jia & Junfeng Wang & Xin Han & Haiqi Tang & Xiaoling Xiao, 2023. "Application and Performance Evaluation of Industrial Internet Platform in Power Generation Equipment Industry," Sustainability, MDPI, vol. 15(20), pages 1-30, October.
    2. Heyong Wang & Long Gu & Ming Hong, 2024. "The Development Status of the Manufacturing Industry and the Impact of Digital Characteristics from the Perspective of Innovation," Sustainability, MDPI, vol. 16(3), pages 1-25, January.

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