Chinese Manufacturing Enterprises Research Articles

Green innovation dynamics in Chinese manufacturing enterprises: a new institutional and stakeholder theory inquiry

Green innovation dynamics in Chinese manufacturing enterprises: a new institutional and stakeholder theory inquiry

Reflections on the Construction of Strategic Performance Management System in Chinese Manufacturing Enterprises

In the surge of global economic integration, China's manufacturing industry is poised at the forefront of a transformational upgrade. Beyond the hum of production lines, the vital pulse lies within the robust rhythm of Strategic Performance Management Systems (SPMS). Yet, studies indicate that despite China's manufacturing sector advancing towards "intelligent manufacturing" and innovation, there are numerous areas within strategic performance management systems that urgently demand enhancement. In the coming years, for China's manufacturing industry to secure higher value positioning within the global supply chain and assert dominance in niche markets, it must seize the nerve center of strategic performance management. Confronted with a series of challenges including slowing growth, rising costs, and tightening environmental regulations, manufacturing enterprises urgently need to construct an efficient and precise performance management system. However, in reality, many enterprises still exhibit a weak strategic execution, lacking a systematic performance orientation and employee incentive mechanisms, often resulting in a disconnect between strategic objectives and performance management. The factors affecting the effective implementation of strategic performance management within enterprises are intricate. Internal factors primarily encompass the rigidity of corporate culture, bottlenecks in leadership style and employee engagement, as well as hindrances in information sharing and communication mechanisms. External factors involve the volatility of market environments, unclear policy directions, and intensifying international competition. The formulation of a comprehensive performance management system undoubtedly holds profound significance for optimizing resource allocation, reinforcing core competitiveness, and enhancing strategic responsiveness.

Import of digital products and production fragmentation

Empowering traditional manufacturing through the digital economy can not only enhance the competitiveness of Chinese manufacturing enterprises, but also enhance the degree of specialization of enterprises by optimizing the industrial structure, thus enhancing the embeddedness of Chinese enterprises in the global value chain. Based on this background, on the one hand, this paper extracts and integrates digital product information from China Customs data. On the other hand, this paper constructs the number of production processes of enterprises as a proxy variable for production fragmentation. Finally, by matching these two databases, we get the production segmentation data of Chinese enterprises' digital product import from 2000 to 2014. We found that improving the penetration degree of digital technology by importing digital products can effectively promote the production fragmentation. In order to further clarify the mechanism, we divided the digital products into final and intermediate kinds and found that firms importing digital final goods have a larger marginal impact on their production fragmentation.

The impact of green innovation on the carbon performance of Chinese manufacturing enterprises: Moderating role of internal governance

With the increasing problems of global warming, ecological damage, and excessive consumption of resources, a greater number of countries are focusing on corporate carbon performance and carbon emissions. Enterprises can save energy and reduce emissions through green innovation, which will improve the efficiency of carbon use and contribute to higher levels of corporate carbon performance. Meanwhile, effective corporate governance can improve enterprise performance, while internal governance systems can affect enterprise carbon performance. This study aims to reveal how the green innovation affect carbon performance of enterprises and the role of internal governance. So this study utilizes the data of China's A-share listed manufacturing companies from 2010 to 2020 to examine the impact of green innovation on corporate carbon performance through a fixed-effects model, and to examine the impact of corporate internal governance structure on green innovation and carbon performance through a moderating-effects model. The data used in this study are mainly from China Securities Market and Accounting Research Database (CSMAR) and China Research Data Service Platform (CNRDS), and the robustness test is conducted by replacing the independent variables using the 2sls method. The findings indicate that green innovation has a significant contribution to enterprise performance on carbon. Ownership concentration and executive political connections negatively moderated the relationship between green innovation and carbon performance. Director compensation positively moderates the relationship between green innovation and carbon performance. This research provides a theoretical groundwork for future studies on green innovation and carbon performance, and its findings are instructive for both the introduction of government policies and the restructuring of internal corporate governance.

Shanghai oil futures prices and firms' investment decisions: Evidence from Chinese manufacturing firms

International crude oil futures prices play a key role in market pricing, price discovery, and reshaping the market order. As the world's largest importer of crude oil, China urgently needs to establish contracts based on Asian supply and demand to mitigate currency risk for refiners and consumers. Against the backdrop of the launch of yuan-denominated crude oil futures by the Shanghai International Energy Exchange (INE) on March 26, 2018, this paper examines the impact of crude oil futures prices on the investment scale of Chinese manufacturing companies based on data from listed manufacturing companies in China from 2016Q1 to 2021Q3. The study finds that increases in international crude oil futures prices suppress the investment scale of Chinese manufacturing enterprises, while price volatility has a promoting effect. The listing of Shanghai crude oil futures has a negative shock effect on the impact of international crude oil futures prices on the investment scale of Chinese manufacturing enterprises. Additionally, increases in operational leverage amplify the negative impact of international crude oil futures prices on the investment scale of enterprises and weaken the positive impact of changes in international crude oil futures prices on the investment scale. Furthermore, among large manufacturing enterprises, volatility and increases in international crude oil futures prices suppress their investment scale; whereas in small and micro manufacturing enterprises, price increases and volatility significantly boost their investment scale. This paper provides empirical evidence and policy implications for fully leveraging Shanghai crude oil futures to optimize corporate investment decisions and support the sustainable development of enterprises.

Sustainable Media and Green Innovation: The Impact of Sustainable Atmosphere and Environmental Regulation on Manufacturing Enterprises

This study proposes a research framework for media attention towards green innovation of manufacturing enterprises based on the theory of stakeholders and legitimacy. We examine the potential effect of media attention on the manufacturing industry and make a multidimensional heterogeneity analysis with a sample of Chinese manufacturing enterprises during 2011–2019. Our results show an inverted U-shaped relationship between various attentions of media and green innovation. We find that the early attention of the media can expand the green innovation ability of manufacturing enterprises. However, the excessive attention of the media later may decrease the green behavior of enterprises. The legitimacy pressure of media attention on enterprises helps enterprises carry out green innovation and reduce false green innovation activities. In addition, the sustainable construction, environmental regulations, and sustainable social atmosphere focused on by the media will have a positive effect on the green innovation of enterprises. We suggest that recognizing the importance and potential power of sustainable media, environmental regulations, and sustainable atmosphere in green technology is a key component of the ecological inclusive path to promote the achievement of sustainable development goals.

Environmental regulations, GHRM and green innovation of manufacturing enterprises: evidence from China

The contradiction between the economy and the environment is becoming more and more prominent. Green innovation is significant for Chinese manufacturing enterprises considering environmental and economic performance. Based on motivation theory and motivation crowding theory, this study aims to explore the impact of environmental regulations on green innovation of Chinese manufacturing enterprises and the mediating role of green human resource management between environmental regulations and green innovation of enterprises. Using structural equation modeling and SPSS macro, the results of the empirical analysis of 127 manufacturing enterprises in Guangdong Province, China, show that command-controlled regulation, market-incentivized regulation, and voluntary regulation positively impact enterprises’ green innovation, and green human resource management positively affects enterprises’ green innovation. Green human resource management only mediates the relationship between voluntary environmental regulation and green innovation. The study systematically reveals the driving mechanism of green innovation in Chinese manufacturing enterprises and enriches the relevant research on green innovation in manufacturing enterprises.

How Does the Digital Transformation Affect the Carbon Emissions of Manufacturing Enterprises in China? The Perspective of Green Technology Innovation

With the continuous intensification of competition among major countries and the resurgence of anti-globalization trends, countries around the world have strengthened their strategic deployment for digital transformation in the manufacturing industry. Digital development enables enterprises to transform and upgrade, and the digital transformation and green transformation of enterprises have a historic intersection. This study uses the panel data of 1900 A-share listed companies to explain the theoretical mechanism of digital transformation to promote carbon emission reduction from the perspective of green technology progress. In addition, the threshold model is used to analyze the nonlinear relationship. The results show that the digital transformation has significantly reduced the carbon emission level of Chinese manufacturing enterprises, and the conclusion is still true after the instrumental variable estimation and robustness test. Heterogeneity analysis found that the carbon emission reduction in state-owned enterprises is more obvious. Green technology innovation capability shows the technology dividend effect, which is an important way for digital transformation to promote carbon emission reduction. This study expands the research on the sustainable development of China’s manufacturing industry and provides guidance for policy makers and business decision makers.

Ambidextrous strategy, institutional support and disruptive innovation: an fsQCA analysis

ABSTRACT With the rise of emerging economies such as China, disruptive innovation (DI) has become a significant way for enterprises to catch up with incumbents. This paper aims to study the impacts of ambidextrous strategies and institutional support on DI. We constructed a theoretical model containing six antecedent conditions and a result variable, including technology ambidextrous balance strategy (TABS), technology ambidextrous complementation strategy (TACS), market ambidextrous balance strategy (MABS), market ambidextrous complementation strategy (MACS), formal institutional support (FS), informal institutional support (IS) and DI. Based on set theory ideas, a fuzzy-set qualitative comparative analysis (fsQCA) was conducted on 230 Chinese manufacturing enterprises. The findings show that: (1) a single antecedent can't alone constitute the necessary conditions for DI; (2) three antecedent configurations can lead to DI; and (3) in particular conditions, ambidextrous strategies and institutional support could be matched to achieve DI. This study offers an alternative approach to understanding factors influencing DI by using set theory ideas and has practical value for promoting DI.

How does digital transformation empower knowledge creation? Evidence from Chinese manufacturing enterprises

Knowledge creation is the foundation for indigenous innovation in manufacturing enterprises; however, the effects of digital transformation on knowledge creation are still not well understood. Nonaka put forward the model of knowledge creation, which includes four processes: socialization, externalization, combination, and internalization, known as the famous SECI model. Based on the SECI model, this study analyzes the effects of digital transformation on four knowledge creation processes, using panel data from Chinese listed manufacturing enterprises from 2007 to 2020. The study provides several novel findings. First, digital transformation positively affects all knowledge creation processes, with the effects on knowledge combination capability being particularly notable. Second, the effects of digitalization inputs on externalization and combination are insignificant but exert a negative impact on socialization and internalization. Third, a heterogeneity analysis reveals that the facilitating effect of digital transformation is more significant in state-owned and large enterprises. Moreover, it primarily acts as the "cherry on top," significantly benefiting enterprises that already have strong knowledge creation capabilities. A low level of digital technology development in the region where an enterprise is located will inhibit the role of digital transformation in promoting knowledge socialization. Furthermore, enterprise innovation culture and regional innovation environments play positive moderating roles. This study contributes to further understanding of how digital transformation affects enterprises’ knowledge creation activities.

HOW CEO TECHNICAL BACKGROUND CHARACTERISTICS AFFECT THE EFFECTIVENESS OF DIGITAL TRANSFORMATION OF MANUFACTURING ENTERPRISES - THE MEDIATING ROLE OF DYNAMIC CAPABILITIES

The digital transformation of manufacturing enterprises has an important impact on both the economy and society and the enterprise itself, and the CEO has an important impact on the effect of the digital transformation of manufacturing enterprises. The 20-Shenzhen A-share listed manufacturing companies from 2016 to 2021 are used as research subjects. The effect of the CEO's technical background on the digital transformation of these companies is studied empirically, and the dynamic capability is broken down into external perception capability and internal research and development capability to test their mediating effect. The research found that the technical background characteristics of the CEO significantly affect the effectiveness of digital transformation in manufacturing enterprises; the technical background characteristics of the CEO can influence the strategic decision and implementation of manufacturing enterprises; and the research conclusion enriches the related research on digital transformation and high-order theory in manufacturing enterprises and also provides theoretical reference for the training of the CEO of Chinese manufacturing enterprises.

Enterprise pollution reduction through digital transformation? Evidence from Chinese manufacturing enterprises

Digital transformation provides new opportunities for the green development of enterprises. Clarifying the impact and mechanism of digital transformation on enterprise pollution reduction has important policy implications for the synergistic development of digitalization and greenization. This paper explores the impact of digital transformation on enterprise pollution abatement using data from Chinese manufacturing enterprises and fixed effects models. The empirical results show that digital transformation contributes to enterprise pollution reduction. Furthermore, the pollution reduction role of digital transformation is more pronounced in enterprises with high degrees of pollution intensity. Digital transformation acts on pollution reduction through productivity improvement and scale expansion, while a mechanism for green technology innovation does not exist. Additionally, industry attributes and external environment heterogeneity affect the pollution abatement role of digital transformation. Enterprises can achieve stronger pollution abatement from digital transformation when they belong to high-polluting industries, high-tech industries, areas with high environmental regulation (HER), and cohorts. The paper provides new micro evidence that digital transformation promotes pollution reduction, enriches the literature on the environmental impact of digital transformation, and provides beneficial insights for enterprises to drive pollution reduction in the era of the digital economy.

Currency overvaluation and export product quality: Evidence from China

Based on Chinese industrial firm information and international transaction data from 2003 to 2013, we construct a currency overvaluation index across 297 cities in China. Using the innovative index, we present that currency overvaluation significantly promotes export product quality of Chinese manufacturing enterprises, which is conceivably due to increased import of intermediate goods. Heterogeneity analysis reveals that the impact is more pronounced for medium-sized firms, domestic invested firms, and firms in non-mega cities. By investigating the driving forces of export product quality improvement, we provide clear policy implications for government and firms pursuing long-term development.

How automated machines influence employment in manufacturing enterprises?

This paper theoretically analyzes and empirically examines the impact and mechanisms of automated machines on employment in manufacturing enterprises, drawing on task-based model and using micro data from listed Chinese manufacturing enterprises between 2012 and 2019. Our findings reveal that: (1) Automated machines in manufacturing enterprises leads to a substitution effect on the total labor force, with a substitution effect on low-skilled labor and a creation effect on high-skilled labor in terms of employment structure. (2) Further analysis indicates that automated machines primarily have a positive effect on R&D and technical staff, a non-significant effect on sales staff, and a negative impact on production, administrative, and financial staff. (3) The primary influencing mechanisms of automated machines on employment in manufacturing firms are productivity effects and output scale effects, based on the mediation effect model. (4) Considering the industry linkage effect, we employ the input-output method and the Input-Output Table and find that automated machines for upstream (downstream) manufacturing enterprises will result in a substitution effect on employment for downstream (upstream) enterprises. The novelties and research contributions are as follows: (1) we conduct a structural decomposition of total employment, and further decompose employment positions into production, R&D, sales, finance, and administration. (2) We try to investigate the industry linkage effect about the impact of automated machines on the employment of upstream and downstream enterprises. (3) We use data from listed manufacturing companies, and the data of existing research are about provincial and industry-level data.

A dynamic panel threshold model analysis on heterogeneous environmental regulation, R&D investment, and enterprise green total factor productivity

Environmental regulations are important means to influence manufacturing enterprise green development. However, there are two completely different conclusions both in theoretical and in empirical research, namely the “Follow Cost” theory and the “Porter Hypothesis”. The nonlinear mechanism needs to be considered. Therefore, this study aims to explain the threshold impact of heterogeneous environmental regulations on enterprise green total factor productivity. Environmental regulations are divided into different sub-categories, then based on the panel data of 1220 Chinese manufacturing listed companies from 2011 to 2020, this paper uses threshold regression model to examine the impact of heterogeneous environmental regulations on Chinese manufacturing enterprise Green Total Factor Productivity. The empirical results show that: (1) Command-controlled, market-incentive and voluntary-agreement environmental regulation all have a significant nonlinear impact on enterprise Green Total Factor Productivity. (2) Enterprise R&D investment plays a threshold role in the impact. (3) There are industry and equity type differences in the impact process. This study focuses on the micro level of enterprises and tests the threshold mechanism, which make some theoretical complement to previous researches. The research results are not only beneficial for the government to propose appropriate environmental regulatory policies, but also for enterprises to achieve green growth through heterogeneous R&D investment.

Industrial robots and pollution: Evidence from Chinese enterprises

Scientific and technological revolutions have given rise to a new generation of general-purpose intelligent manufacturing technology represented by industrial robots, which have become the emerging growth engine in many countries worldwide, leading to significant improvements in productivity and innovation. However, it remains unclear whether the industrial robot adoption can help address the increasingly severe environmental issues. This study investigates the impact of imported industrial robots on the pollutant emission intensity of Chinese manufacturing enterprises using micro panel data from 1998 to 2013. Our findings suggest that the industrial robot adoption leads to a significant reduction in SO2 emission intensity at the enterprise level. These results remain robust even after conducting various robustness checks, addressing endogeneity concerns and adjusting matching strategies. Furthermore, our investigation reveals three channels through which robot adoption reduces SO2 emission intensity: technological progress spillover, clean energy transition, and improvement in end-of-pipe treatment. By providing micro-level evidence on the environmental impacts of industrial robots, this study contributes to our understanding of the positive environmental externality associated with the diffusion of imported intelligent technology across nations and offers valuable insights for the sustainable development of emerging economies.

The U-shaped impact of export quality on firms' innovation output: Empirical evidence from China.

Ensuring product quality plays a pivotal role in the successful execution of new product development and serves as a cornerstone for fostering innovation within enterprises. In this study, we investigate the impact of export quality at the firm level on innovation outcomes, utilizing data from Chinese publicly listed companies and customs data spanning the period from 2010 to 2015. Our analysis uncovers a notable U-shaped relationship between export quality and innovation output in Chinese manufacturing enterprises, particularly with respect to invention patents and utility model patents. Subsequent exploration of heterogeneity reveals that this U-shaped relationship is consistent for non-state-owned enterprises, firms operating in high-technology sectors, young firms, firms exporting to high-income countries, firms situated in the eastern region, and firms engaged in processing trade. Additionally, we find a positively significant effect of Chinese manufacturing export quality on the innovation output of firms exclusively involved in general trade. This paper's key contribution lies in identifying the U-shaped influence of export quality on firms' innovation output and its applicability. The findings suggest that Chinese manufacturing enterprises need to improve the quality of their export products on a long-term and sustained basis. A series of quality standards for the dynamic development of different industries should be formulated, and actively safeguard the innovation needs of these enterprises, thereby enhancing the value chain position of Chinese manufacturing enterprises.

Digital finance, export growth, and sustainability: a study based on Chinese manufacturing enterprises

Digital finance, export growth, and sustainability: a study based on Chinese manufacturing enterprises

Collaborative supply chain finance based on transaction cost theory: a multiple case study in the POF scenario

ABSTRACT In traditional supply chains, downstream distributors of core companies often face significant cash pressure and market uncertainty. In this case, purchase order finance (POF), as an important form of supply chain finance (SCF), plays a vital role in addressing these challenges by providing loan support to financially constrained companies during the ordering stage. To gain more empirical insights into SFC in the POF scenario, this study conducts an in-depth case analysis of the collaborative POF services between three banks and one Chinese core manufacturing enterprise. Based on the results, we identified the collaborative details (goal congruence, information sharing, resource sharing, and synchronised decision-making) and the impacts of the digital investment of banks. The main conclusions of this study have certain reference values for banks in establishing digital capabilities and for core companies in making SCF-related decisions.

Does intergenerational mobility affect corporate innovation? Evidence from Chinese manufacturing enterprises

Integrating efficiency with dynamic fairness is crucial for advancing economic development. This study aims to enhance the analytical framework guiding firm behavior by introducing intergenerational mobility. Using data from Chinese listed enterprises, we empirically investigate the impact of intergenerational mobility on corporate innovation levels. The results show that higher regional intergenerational mobility promotes both quantity and quality of corporate innovation. Compensation incentive, Human capital allocation and social trust are identified as transmission mechanisms. Furthermore, the positive effect of high intergenerational mobility on innovation output is more pronounced in local private enterprises than in state-owned ones. Additionally, our study reveals that formal institutions have substitutive relationship with intergenerational mobility in affecting corporate innovation. These findings contribute to a nuanced theoretical understanding of opportunity equality at the micro-level and provide empirical evidence supporting China’s sustainable economic development.