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The Impact of E-commerce Competition on New Product Entry in the Manufacturing Sector: Evidence from the Republic of Korea's Manufacturing Establishments

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  • Jung Hur

    (Sogang University, Republic of Korea)

Abstract

E-commerce has revolutionised the way firms and businesses operate and compete in the world economy. This paper examines the impact of e-commerce competition on new product entry in the manufacturing sector, using a unique dataset of the Republic of Korea’s manufacturing establishments. Our empirical results suggest that in the era of e-commerce competition, only manufacturers with advanced technological capabilities can survive and create new products to overcome the competition. Moreover, the manufacturers that are able to create new products may be targeting the export markets. This study contributes to the broader literature on the relationship between competition and product innovation by examining how e-commerce participation promotes the creation of new products by manufacturers seeking to survive in a more competitive market.

Suggested Citation

  • Jung Hur, 2024. "The Impact of E-commerce Competition on New Product Entry in the Manufacturing Sector: Evidence from the Republic of Korea's Manufacturing Establishments," Working Papers DP-2024-03, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2024-03
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    References listed on IDEAS

    as
    1. Marin Falk & Eva Hagsten, 2015. "E-commerce trends and impacts across Europe," UNCTAD Discussion Papers 220, United Nations Conference on Trade and Development.
    2. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    3. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    e-commerce; competition; manufacturers; new product entry; export;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General

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