IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i9p7289-d1134486.html
   My bibliography  Save this article

Technological Innovation, Product Quality and Upgrading of Manufacturing Value Chain: Empirical Evidence from China

Author

Listed:
  • Xiaolong Gao

    (School of Economics, Shandong University of Technology, Zibo 255000, China)

  • Changfei Li

    (College of Humanities and Management, Shandong Xiandai University, Jinan 250100, China)

  • Ehsan Elahi

    (School of Economics, Shandong University of Technology, Zibo 255000, China)

  • Mohammad Ilyas Abro

    (Department of Basic Sciences and Humanities, Dawood University of Engineering and Technology, Karachi 74800, Pakistan)

  • Zhaocai Cui

    (School of Economics, Shandong University of Technology, Zibo 255000, China)

Abstract

The aim of this research is to investigate the relationship between enterprise technological innovation, export product quality, and the upgrading of the manufacturing value chain. The study is based on panel data from Chinese manufacturing enterprises between 2000 and 2013 and uses a multi-dimensional fixed-effect method to analyze the moderating effect of enterprise export product quality on the relationship between technological innovation and the upgrading of the manufacturing value chain. The results show that technological innovation significantly promotes the upgrading of the manufacturing value chain. The regression analysis indicates that a 1% increase in enterprise technological innovation leads to a 0.28% increase in the upgrading of the manufacturing value chain. Similarly, the study demonstrates that improving the quality of exported products significantly enhances the manufacturing industry’s status in the global value chain. The regression analysis reveals that a 1% increase in the quality of exported products leads to a 0.14% increase in the upgrading of the manufacturing value chain. Moreover, the research identifies a threshold value of 0.4438 for the moderating effect of enterprise export product quality on the impact of technological innovation on the upgrading of the manufacturing value chain. When the quality of exported products is below the threshold value, it has a strong positive regulatory effect on technological innovation, promoting the upgrading of the manufacturing value chain. However, once the quality of exported products exceeds the threshold value, its regulatory effect becomes insignificant. The study’s findings have important implications for enterprises looking to overcome the “dilemma of scientific and technological innovation” and promote the intelligent development of the manufacturing industry. The research conclusions have strong reference value for promoting the combination of technology innovation and business model innovation in manufacturing enterprises. This will allow for climbing the high-end links of the global value chain and achieving sustainable development.

Suggested Citation

  • Xiaolong Gao & Changfei Li & Ehsan Elahi & Mohammad Ilyas Abro & Zhaocai Cui, 2023. "Technological Innovation, Product Quality and Upgrading of Manufacturing Value Chain: Empirical Evidence from China," Sustainability, MDPI, vol. 15(9), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:9:p:7289-:d:1134486
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/9/7289/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/9/7289/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peng, Benhong & Chen, Hong & Elahi, Ehsan & Wei, Guo, 2020. "Study on the spatial differentiation of environmental governance performance of Yangtze river urban agglomeration in Jiangsu province of China," Land Use Policy, Elsevier, vol. 99(C).
    2. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    3. Bo Meng & Ming Ye & Shang‐Jin Wei, 2020. "Measuring Smile Curves in Global Value Chains," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(5), pages 988-1016, October.
    4. Elahi, Ehsan & Khalid, Zainab & Tauni, Muhammad Zubair & Zhang, Hongxia & Lirong, Xing, 2022. "Extreme weather events risk to crop-production and the adaptation of innovative management strategies to mitigate the risk: A retrospective survey of rural Punjab, Pakistan," Technovation, Elsevier, vol. 117(C).
    5. Yuanyuan Wang & Benhong Peng & Guo Wei & Ehsan Elahi, 2019. "Comprehensive Evaluation and Spatial Difference Analysis of Regional Ecological Carrying Capacity: A Case Study of the Yangtze River Urban Agglomeration," IJERPH, MDPI, vol. 16(18), pages 1-16, September.
    6. Zhu, Zhen & Morrison, Greg & Puliga, Michelangelo & Chessa, Alessandro & Riccaboni, Massimo, 2018. "The similarity of global value chains: A network-based measure," Network Science, Cambridge University Press, vol. 6(4), pages 607-632, December.
    7. Antoine Dechezleprêtre & Misato Sato, 2017. "The Impacts of Environmental Regulations on Competitiveness," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 11(2), pages 183-206.
    8. Maria Bas & Vanessa Strauss-Kahn, 2013. "Input-Trade Liberalization, Export Prices and Quality Upgrading," Working Papers hal-03460775, HAL.
    9. Elahi, Ehsan & Zhang, Hongxia & Lirong, Xing & Khalid, Zainab & Xu, Haiyun, 2021. "Understanding cognitive and socio-psychological factors determining farmers’ intentions to use improved grassland: Implications of land use policy for sustainable pasture production," Land Use Policy, Elsevier, vol. 102(C).
    10. Zhi Wang & Shang-Jin Wei & Kunfu Zhu, 2013. "Quantifying International Production Sharing at the Bilateral and Sector Levels," NBER Working Papers 19677, National Bureau of Economic Research, Inc.
    11. Bas, Maria & Strauss-Kahn, Vanessa, 2015. "Input-trade liberalization, export prices and quality upgrading," Journal of International Economics, Elsevier, vol. 95(2), pages 250-262.
    12. Elahi, Ehsan & Khalid, Zainab & Zhang, Zhixin, 2022. "Understanding farmers’ intention and willingness to install renewable energy technology: A solution to reduce the environmental emissions of agriculture," Applied Energy, Elsevier, vol. 309(C).
    13. Elahi, Ehsan & Khalid, Zainab, 2022. "Estimating smart energy inputs packages using hybrid optimisation technique to mitigate environmental emissions of commercial fish farms," Applied Energy, Elsevier, vol. 326(C).
    14. Elahi, Ehsan & Zhang, Zhixin & Khalid, Zainab & Xu, Haiyun, 2022. "Application of an artificial neural network to optimise energy inputs: An energy- and cost-saving strategy for commercial poultry farms," Energy, Elsevier, vol. 244(PB).
    15. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yida Song, 2024. "“County-to-City Upgrading” Policy and Firm Innovation—Evidence from China," Sustainability, MDPI, vol. 16(12), pages 1-19, June.
    2. Jiahui Xu & Chee-Pung Ng & Toong Hai Sam & Asokan Vasudevan & Poh Kiong Tee & Alex Hou Hong Ng & Wong Chee Hoo, 2023. "Fiscal and Tax Policies, Access to External Financing and Green Innovation Efficiency: An Evaluation of Chinese Listed Firms," Sustainability, MDPI, vol. 15(15), pages 1-19, July.
    3. Genhua Hu & Xuejian Zhang & Tingting Zhu, 2024. "A Catalyst for China’s High-Tech Export Competitiveness: Perspective of Technological Innovation," Sustainability, MDPI, vol. 16(5), pages 1-26, March.

    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. Yan Zhao & Ehsan Elahi & Zainab Khalid & Xuegang Sun & Fang Sun, 2023. "Environmental, Social and Governance Performance: Analysis of CEO Power and Corporate Risk," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    2. Gang Li & Ehsan Elahi & Xingshuai Wang, 2023. "Population age structure, asset price, and financial stability," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2041-2056, June.
    3. Haidong Yuan & Chin-Hong Puah & Josephine Tan-Hwang Yau, 2022. "How Does Population Aging Impact Household Financial Asset Investment?," Sustainability, MDPI, vol. 14(22), pages 1-14, November.
    4. Xiuli Cui & Ehsan Elahi & Zainab Khalid & Bo Xu, 2022. "Environmental Regulation, Manufacturing Technological Progress and Pollution Emissions: Empirical Evidence from China," Sustainability, MDPI, vol. 14(23), pages 1-19, December.
    5. Wei Wang & Ehsan Elahi & Shiying Sun & Xiaoqing Tong & Zhaosen Zhang & Mohammad Ilyas Abro, 2023. "Factors Influencing Water Use Efficiency in Agriculture: A Case Study of Shaanxi, China," Sustainability, MDPI, vol. 15(3), pages 1-14, January.
    6. Xingshuai Wang & Ehsan Elahi & Zainab Khalid & Mohammad Ilyas Abro, 2023. "Environmental Governance Goals of Local Governments and Technological Innovation of Enterprises under Green Performance Assessment," IJERPH, MDPI, vol. 20(3), pages 1-19, January.
    7. Lirong Xing & Xiaomiao Yin & Chuanxiang Cao & Ehsan Elahi & Taoyuan Wei, 2022. "The Impact of Multidimensional Distance on Agricultural Exports: Evidence from China Based on the Technological Added Value," Sustainability, MDPI, vol. 15(1), pages 1-17, December.
    8. Yihao Cao & Ehsan Elahi & Zainab Khalid & Ping Li & Pengsheng Sun, 2023. "How Do Intellectual Property Rights Affect Green Technological Innovation? Empirical Evidence from China," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    9. Shuyun Li & Mingxue Wei & Ehsan Elahi & Zainab Khalid & Shaozhi Chen, 2023. "The Sustainable Impact of Import on Chinese Residents’ Happiness: Evidence from CGSS," Sustainability, MDPI, vol. 15(8), pages 1-18, April.
    10. Xingshuai Wang & Ehsan Elahi & Zainab Khalid, 2022. "Do Green Finance Policies Foster Environmental, Social, and Governance Performance of Corporate?," IJERPH, MDPI, vol. 19(22), pages 1-15, November.
    11. Min Zhu & Mengqi Sun & Ehsan Elahi & Yajie Li & Zainab Khalid, 2023. "Analyzing the Relationship between Green Finance and Agricultural Industrial Upgrading: A Panel Data Study of 31 Provinces in China," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
    12. Min Zhu & Haiyun Tang & Ehsan Elahi & Zainab Khalid & Kaili Wang & Nimra Nisar, 2022. "Spatial-Temporal Changes and Influencing Factors of Ecological Protection Levels in the Middle and Lower Reaches of the Yellow River," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
    13. Shengnan Huang & Ehsan Elahi, 2022. "Farmers’ Preferences for Recycling Pesticide Packaging Waste: An Implication of a Discrete Choice Experiment Method," Sustainability, MDPI, vol. 14(21), pages 1-13, October.
    14. Min Zhu & Yajie Li & Zainab Khalid & Ehsan Elahi, 2023. "Comprehensive Evaluation and Promotion Strategy of Agricultural Digitalization Level," Sustainability, MDPI, vol. 15(8), pages 1-15, April.
    15. Zhixin Zhang & Xiao Meng & Ehsan Elahi, 2022. "Protection of Cultivated Land Resources and Grain Supply Security in Main Grain-Producing Areas of China," Sustainability, MDPI, vol. 14(5), pages 1-15, February.
    16. Feng Ji & Guangyuan Zhao & Lun Meng & Rana Tehseen & Fushuai Wang, 2022. "Cultivating Talents for Reporting Environmental News on China’s Carbon Neutrality Policy," Sustainability, MDPI, vol. 14(24), pages 1-19, December.
    17. Kaili Wang & Ehsan Elahi & Yuge Zhang & Di Wang & Zainab Khalid, 2022. "A Development of Green Finance and Regional Eco-Efficiency in China," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    18. Jiaqi Li & Ehsan Elahi & Peng Cheng & Aimin Wu & Fengtong Cao & Wang Jian & Mohammad Ilyas Abro & Zainab Khalid, 2023. "The Opening of High-Speed Railway and Coordinated Development of the Core–Periphery Urban Economy in China," Sustainability, MDPI, vol. 15(5), pages 1-15, March.
    19. Jingxing Zhang, 2022. "Impact of Manufacturing Servitization on Factor Productivity of Industrial Sector Using Global Value Chain," Sustainability, MDPI, vol. 14(9), pages 1-15, April.
    20. Lun Wang & Ehsan Elahi & Yuzhong Zhou & Liming Wang & Shihan Zhang, 2022. "A Review of Packaging Materials’ Consumption Regulation and Pollution Control," Sustainability, MDPI, vol. 14(23), pages 1-16, November.

    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:gam:jsusta:v:15:y:2023:i:9:p:7289-:d:1134486. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.