Abstract
This study investigates the relationship between digital financial inclusion, external financing, and the innovation performance of high-tech enterprises in China. The choice of corporate financing methods is an important part of organizational behavioral psychology, and different financing models will have a certain effect on organizational performance, especially in the digital economy environment. Therefore, based on resource dependence theory and financing constraint theory, the present study utilizes the panel data collected from the China Stock Market & Accounting Research (CSMAR) database from 2011 to 2020 of 112 companies in the Yangtze River Delta region and the “The Peking University Digital Financial Inclusion Index of China (PKU-DFIIC)” released by the Peking University Digital Finance Research Center and Ant Financial Group. The results show that the Digital Financial Inclusion Index (DFIIC) has a significant positive correlation with the innovation performance of high-tech enterprises. The higher the level of debt financing, the stronger the role of digital financial inclusion in promoting innovation performance. Investigating the DFIIC in terms of coverage breadth and usage depth, we find that usage depth does not significantly encourage innovation performance. The effect of the interaction between coverage breadth and external financing is consistent with the results for the DFIIC. The study suggests that equity financing promotes the usage depth of the DFIIC in state-owned enterprises. In contrast, debt financing promotes the coverage breadth of non-state-owned enterprises. Finally, we propose relevant policy recommendations based on the research results. It includes in-depth popularization of inclusive finance in the daily operations of enterprises at the technical level, refinement of external financing policy incentives for enterprises based on the characteristics of ownership, and strengthening the research of technologies such as big data, artificial intelligence (AI), and cloud computing. The paper presents a range of theoretical and practical implications for practitioners and academics relevant to high-tech enterprises.
Highlights
The digital economy is developing rapidly, and the need to support its development has become a global consensus
This study focuses on whether the digital financial inclusion environment and external source financing significantly impact the innovation performance of high-tech enterprises
We propose the following hypotheses: H1: Digital financial inclusion has a positive impact on the innovation performance of high-tech enterprises
Summary
The digital economy is developing rapidly, and the need to support its development has become a global consensus. The digital economy is based on new-generation information technology, which gave birth to new business models and economic activities. Innovation in information technology improves the efficiency of resource allocation. As global industries undergo digital innovation, many countries witness the digital reform of financial institutions (Shaikh et al, 2017), the rise of the digital banking culture (Gruin and Knaack, 2020), and social currency digitization. Technological innovation fosters firms’ development and national competitiveness. The integrated development of the area helps promote the domestic economic cycle. Since a national strategy revolves around this region, financial technology talents, technology, capital, information, and other resources have been effectively integrated. The regional financial system has been continuously improved
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