Chinese Manufacturing Firms Research Articles

Comparing the Impact of Green Supplier Selection and Integration on Environmental Performance: An Analysis of the Moderating Role of Government Support

As the green market becomes increasingly saturated, companies must allocate limited resources to more precise and efficient projects. This study aims to explore and compare the impact of green supplier selection and green supplier integration on environmental performance, with a particular focus on the moderating role of government support. The research was conducted through a survey of 391 Chinese manufacturing firms by a specialized research institution, employing hierarchical regression analysis. The results indicate that both green supplier selection and integration have a positive impact on environmental performance, with green supplier integration having a more significant effect. Moreover, active government support weakens the relationship between green supplier selection and environmental performance but strengthens the relationship between green supplier integration and environmental performance. Given the study’s context, scope, and sample size, certain limitations exist. This research highlights more strategically significant supplier management practices and emphasizes the moderating role of government support in different contexts, while also providing valuable and practical recommendations for relevant practitioners.

Effect of top management team attention to digital transformation on innovation activities

Digital transformation, as a global trend, has captured a lot of attention from management. How management allocates attention resources has become an important issue if a firm plans to pursue digital transformation. We provide an empirical analysis for this problem from the perspective of the attention-based view. We use data from 493 listed Chinese manufacturing firms from 2012–2020 to examine how the allocation of top management team (TMT) attention to digital transformation affects innovation activities. The results reveal that TMT attention to digital transformation and its intensity has a positive impact on corporate innovation activities, while the breadth of attention exhibits an inverted U-shaped impact on innovation activities. These findings are consistent with theoretical predictions. We also examine the moderating roles of external factors such as market conditions, corporate ownership, CEO duality, and policy support that distract managers’ attention, and reveal different characteristics of moderating role of Chinese state-owned firms. These findings provided a reference for further promoting digital transformation.

How do global value chains respond to climate change? A case study of Chinese manufacturing firms

This study investigates climate risk and its effects on global value chain (GVC) participation, with a focus on the impact of drought on the export value-added ratio (DVAR) of Chinese manufacturing firms. Using fixed effects (FE) and system GMM models, the main findings are: Drought significantly reduces manufacturing firms' DVAR, with the lagged dependent variable showing a strong persistence effect and an even greater impact in the second lag period. This impact varies based on the firm's location, the complexity of its value chain, and its ability to adapt to and mitigate climate change effects. Strategies such as improving operational efficiency, investing in sustainable technologies, and enhancing competitiveness in developed markets may help mitigate or reverse the adverse effects of climate change on these firms. Additionally, significant industry and regional differences are observed, with the Northeast, East, and South China regions being most severely affected by drought. Global innovation value chains and regional processing value chains are significantly negatively impacted, while labor-intensive value chains are affected only in the current period. These findings provide new insights into the economic impacts of climate change and offer a basis for policymakers to develop strategies that help firms adapt to and mitigate climate risks.

Automating efficiency: The impact of industrial robots on labor investment in China

This study examines the impact of industrial robot applications on labor investment efficiency. While previous studies have mainly focused on how industrial robots affect productivity, economic structures, and labor markets, their influence on labor investment efficiency has remained relatively underexplored. Using data from Chinese manufacturing firms, our results demonstrate that the adoption of industrial robots significantly improves labor investment efficiency. This improvement is mainly achieved by optimizing the human capital structure and enhancing capital deepening. We also find that this effect is more pronounced in non-state-owned enterprises, in environments with reduced information asymmetry, and in firms with low R&D investment and labor intensity. Overall, our results highlight the positive effect of industrial robot applications on the efficiency of corporate labor investments from a microeconomic perspective, providing important insights for labor investment decisions and resource allocation optimization.

Trade Liberalization and Pollutant Emissions: Micro Evidence from Chinese Manufacturing Firms

Trade Liberalization and Pollutant Emissions: Micro Evidence from Chinese Manufacturing Firms

Unveiling the impact of the congruence between artificial intelligence and explorative learning on supply chain resilience

PurposeDrawing upon socio-technical system theory, this study intends to investigate the effects of the congruence and incongruence between artificial intelligence (AI) and explorative learning on supply chain resilience as well as the moderating role of organizational inertia.Design/methodology/approachUsing survey data collected from 170 Chinese manufacturing firms, we performed polynomial regression and response surface analyses to test our hypotheses.FindingsWe find that the congruence between AI and explorative learning enhances firms’ supply chain resilience, while the incongruence between these two factors impairs their supply chain resilience. In addition, compared with low–low congruence, high–high congruence between AI and explorative learning improves supply chain resilience to a greater extent. Moreover, organizational inertia attenuates the positive influence of the congruence between AI and explorative learning on supply chain resilience, while it aggravates the negative influence of the incongruence between these two factors on supply chain resilience.Originality/valueOur study expands the literature on supply chain resilience by demonstrating that the congruence between a firm’s AI (i.e. technical aspect) and explorative learning (i.e. social aspect) boosts its supply chain resilience. More importantly, our study sheds new light on the role of organizational inertia in moderating the congruent effect of AI and explorative learning, thereby extending the boundary condition for socio-technical system theory in the supply chain resilience literature.

When temperatures matter: Extreme heat and labor share

While prior literature has demonstrated the negative effects of extreme heat on labor productivity, empirical evidence remains limited on its implications for labor share. This study employs a rich dataset of Chinese manufacturing firms spanning the years 1998 to 2007 to examine the impact of extreme heat on labor share in the context of climate change. Our empirical analysis reveals a statistically significant reduction in labor share triggered by extremely high temperatures. Specifically, an additional day with temperatures above 90 °F leads to a 0.129 percentage-point decrease in labor share. We extend our inquiry to discern the underlying mechanisms and find that the capital-labor substitution channel principally drives the observed decline in labor share. Importantly, our analysis indicates that the manufacturing sector does not provide an employment buffer for workers migrating from the agriculture sector due to temperature-related productivity shocks, thereby exacerbating the detrimental effects on labor share. The findings highlight the policy relevance of enhancing labor market flexibility to mitigate the adverse consequences of extreme heat on labor share.

Digital Transformation and Breakthrough Innovation in Chinese Manufacturing Firms

Digital Transformation and Breakthrough Innovation in Chinese Manufacturing Firms

Productivity Convergence Among Chinese Firms: The Role of Five-Year Plans and SOEs

This study examines productivity convergence among Chinese manufacturing firms over the period 2000–2020. The research found evidence of club convergence, where firms converge toward different productivity levels rather than a single steady state within specific sectors. The number of convergence clubs varied by industry and over time, indicating heterogeneity in productivity development across firms. The speed of productivity convergence among firms within an industry generally decreased over the four Five-Year Plans, suggesting that over time it became more difficult for less productive firms to catch up. The presence of state-owned enterprises (SOEs) in an industry was found to be positively associated with faster productivity convergence, indicating SOEs may help in knowledge dissemination and facilitate catch-up of lagging firms. Strengthening intellectual property protection over time was also linked to slower productivity convergence, as it increased the costs of knowledge spillovers. The results highlight how the industrial presence of SOEs and the trend of strengthening intellectual property protection could impact productivity convergence among manufacturing firms.

China's declining business dynamism

AbstractWe document five novel facts about the dynamism of Chinese manufacturing firms between 2003 and 2018. We show that: (i) the revenue and capital shares of young firms have declined, (ii) life‐cycle growth of firm revenues and assets has declined, (iii) life‐cycle growth of process efficiency / product quality and investment in intangibles has declined (iv) younger firms have higher capital productivity than older firms, with the gap increasing over time, and (v) the dispersion of capital growth and the responsiveness of capital growth to capital productivity have both declined. Using a simple model, we estimate that the lower life‐cycle productivity growth of young firms reduces manufacturing productivity growth by 0.8 percentage points annually, and worsening allocative efficiency of capital between young and old firms reduced manufacturing total factor productivity by 1.25% between the early 2000s and late 2010s. We find that business dynamism is weaker in provinces where state‐owned enterprises account for a larger share of the capital stock.

Digital-based business model design and firm performance: the mediating role of ambidextrous innovation

PurposeBusiness model design (BMD) is essential for firms to interact with stakeholders and gain competitive advantages in a changeable business environment. The advances in digital technologies create plenty of opportunities for the transformation of BMD. However, the effect of digital-based BMD on firm performance and the underlying mechanisms are unclear. Based on dynamic capability theory, this paper aims to introduce a framework elaborating on how digital-based novelty- and efficiency-centered BMD impact firm performance.Design/methodology/approachTo examine the hypotheses, the authors collect data from 277 Chinese manufacturing firms and use hierarchical regression analysis to process the data.FindingsThe results indicate that ambidextrous innovation partially mediates the impacts of digital-based novelty- and efficiency-centered BMD on firm performance. Interorganizational learning only strengthens the impact of digital-based efficiency-centered BMD on ambidextrous innovation.Originality/valueThis study reveals the impacts of two distinct digital-based BMD on firm performance and uncovers the underlying mechanisms, which enrich the BMD literature and provide a deeper understanding of B2B marketing.

How green entrepreneurial orientation leads to business success? A resource base and resource dependency perspectives

AbstractThis study investigates the impact of green entrepreneurial orientation (GEO) on firm performance through green innovation and green entrepreneurship image with the moderating influence of green value co‐creation. In recent years, the incorporation of sustainability and entrepreneurship into company plans has gained significance, and understanding the processes through which these aspects effect firm outcomes is critical. This study employed survey methodology to collect data from the Chinese manufacturing firms. The analysis was done on 383 finalized responses through SPSS and AMOS. The findings show that GEO has a positive impact on firm performance through green innovation and green entrepreneurship image. Furthermore, green value co‐creation moderates the relationship between GEO and green innovation, suggesting the importance of external stakeholders in facilitating the firm GEO. This study emphasizes the multidimensional nature of the link between GEO and firm performance, emphasizing the significance of taking both mediating and moderating factors into account. It adds to the growing body of knowledge on sustainability, entrepreneurship, and corporate success by offering a comprehensive framework that captures the subtle interplay of these elements. The findings have implications for firms looking to capitalize on the benefits of GEO and green innovation while also acknowledging the need of collaborative value co‐creation in gaining long‐term competitive advantage.

Core-technology competence in perspective of supplier concentration: the mechanism of strategic aggressiveness and the influence of environmental uncertainty

ABSTRACT This study highlights the necessity of drawing more attention to core-technology competence, a specific dimension of firm innovation competence, when examining the overall supplier concentration-innovation relationship to respond to the unprecedented challenges in the supply chain and technological advancement. Still, the mechanism of strategic aggressiveness and the conditioning role of environmental uncertainty are not well explored in this concern. Therefore, it is necessary to combine these factors to analyse. Using the data from Chinese manufacturing firms from 2012 to 2020 and based on resource dependence theory, we construct a panel data model to conduct empirical analysis and obtain the following results: supplier concentration can hinder firms’ core-technology competence; supplier concentration would constrain firms’ strategic aggressiveness, subsequently impairing core-technology competence; while supplier concentration can limit strategic aggressiveness, high environmental uncertainty can mitigate these negative effects. The findings are beneficial for firms to cope with current challenges and enhance core-technology competence based on the global supply chain crisis and environmental uncertainty.

Exploring supply chain infrastructures for supply chain innovation: the roles of supply chain transformational leadership, supply chain collaboration and entrepreneurial emphasis

ABSTRACT Supply chain (SC) innovation is crucial for organisations to gain competitive advantage, limited research has investigated the core factors that facilitate member participation in SC innovation practices. Drawing on the ‘Context – Drivers – Sources of advantage – Positional advantage’ framework, we posit that SC transformational leadership, as a SC organisational infrastructure, is a critical driver of SC innovation. SC collaboration as a key inter-organisational infrastructure, is a source of advantage, explaining the effect of SC transformational leadership on SC innovation. We also examine the boundary condition that maximise the effectiveness of SC transformational leadership and SC collaboration, demonstrating the driving role of entrepreneurial emphasis. Based on survey data from 288 Chinese machinery manufacturing firms, we utilised structural equation modeling and interaction analysis to validate our hypotheses. The research findings provide empirical evidence supporting our viewpoints, contributing to the existing literature and offering practical guidance for firms’ SC innovation management practices.

Digital Transformation and Breakthrough Innovation in Chinese Manufacturing Firms: Based on Ability-Motivation-Opportunity (AMO) Framework of Human Capital

This paper explores how digital transformation influences breakthrough innovation by adopting the AMO framework of human capital. Through the analysis of data from A-share listed companies in China’s manufacturing industry spanning from 2012 to 2021 using fixed-effect OLS and Sobel test, the study reveals that digital transformation significantly fosters breakthrough innovation within manufacturing companies. This positive impact is attributed to the enhancement of abilities, activation of motivation, and expansion of opportunities for human capital, thus facilitating breakthrough innovation. Furthermore, the study highlights that the impact of digital transformation on breakthrough innovation is particularly pronounced in state-owned and high-tech companies. Additionally, it is observed that companies located in the eastern region of China experiences more robust promotion effects compared to those in central and western regions. Significances and implications are discussed.

The impact of digital industry agglomeration on firms' carbon emissions: new micro-evidence from Chinese manufacturing firms.

In the backdrop of the rapid evolution of the digital economy, the intricate relationship between digital industry agglomeration (DIA) and manufacturing firms' carbon emissions has become crucial for countries to achieve sustainable development. This study delves into this complex dynamic by analyzing data from Chinese-listed manufacturing companies spanning the years 2014 to 2021. A regional-level DIA Index is calculated to explore its impact on manufacturing firms' carbon emissions. The main finding reveals a U-shaped relationship, with an inhibitory effect on carbon emissions in most provinces to the left of the inflection point. Notably, Guangdong Province experiences a promotional phase to the right of the inflection point, where agglomeration intensifies carbon emissions. The robustness tests, including Utest, instrumental variable examination, and propensity score matching, support the credibility of these findings. Mechanism analysis reveals the mediating role of manufacturing firms' technological innovations in this relationship. Specifically, DIA is related to manufacturing firms' technological innovation in an inverted U shape, and technological innovation inhibits these firms' carbon emissions. This micro-evidence not only contributes to a nuanced understanding of the relationship between DIA and carbon emissions but also provides valuable insights to guide policies for sustainable development within the dynamic context of the digital economy.

Technological disruption and patent activities: adoption of robots by Chinese manufacturing firms

Technological disruption and patent activities: adoption of robots by Chinese manufacturing firms

Identifying Key Success Factors for Industry 4.0 Implementation: An Empirical Analysis Using SEM and fsQCA

Industry 4.0 technologies have been gaining significant momentum in recent years. Despite widespread adoption, many companies struggle with the successful implementation of these technologies. This study aims to identify the critical success factors for implementing Industry 4.0 technologies and to examine the effects of various factor combinations. Using the technology–organization–environment framework and the practice-based view, this paper proposes a comprehensive research model. This study employs a hybrid approach combining structural equation modeling (SEM) and fuzzy-set qualitative comparative analysis (fsQCA) to analyze survey data collected from 202 Chinese manufacturing firms. The SEM results indicate that top management support, technology competence, supplier support, and pilot projects are significantly associated with successful implementation. However, the fsQCA results reveal that individual factors alone are insufficient for success; rather, it is the combinations of these factors that drive successful implementation. Specifically, three key combinations lead to success: (1) top management support and technology competence; (2) top management support and supplier support; and (3) technology competence, supplier support, and pilot projects. By recognizing these combinations, manufacturing firms can develop more effective implementation strategies for Industry 4.0 technologies.

Impact of technical barriers to trade measures on innovation – evidence from chinese manufacturing firms

ABSTRACT This study continues the discussion of the relationship between globalization and innovation. Unlike existing studies, this paper shifts attention to the impact of changes in the trade environment caused by Technical Barriers to Trade (TBT) measures on innovation. With Chinese Manufacturing firms’ micro panel dataset and using the number of firm patent applications as a proxy variable to measure innovation, we empirically test the effect of TBT measures on this innovation. This study further distinguishes the heterogeneous effects of the total TBT measures and highly restrictive measures among them. The main estimation results indicate that the total amount of TBT measures imposed by trading partners does not significantly affect the number of patent applications by Chinese exporting firms. However, highly restrictive TBT measures demonstrate a significant negative effect. This once again proves that not all TBT measures are harmful. In addition, we obtained more interesting results through further heterogeneity analyses.

Does digital transformation promote global value chain upgrading? Evidence from Chinese manufacturing firms

Enterprises in developing countries previously entered the lower end of the global value chain (GVC) by leveraging low-cost production factors. Digital transformation offers these enterprises opportunities to move upstream in the GVC. While the literature highlights the benefits of digital technology in enhancing innovation, productivity, and resource utilization, comparatively limited exploration of the relationship between digital transformation and GVC upgrading has occurred. We utilize data on Chinese listed manufacturing firms from 2007 to 2016 to investigate the impact of digital transformation on their positioning in the GVC. The results show that digital transformation significantly enhances manufacturing firms' positions in the GVC, with skill-biased technical change playing a positive role. Our findings indicate the significance of digitalization and talent-management strategies for firms aiming to capture greater value in the GVC.