Foreign-funded Enterprises Research Articles

The impact of digital transformation on enterprises' export stability: Evidence from listed companies in China

Enterprise export stability is crucial to the stable growth of enterprise exports. The digital transformation of enterprises has become an important driver for promoting high-quality enterprise development with the development of digital technology. This paper examines the impact of digital transformation on enterprises' export stability and explores its intrinsic influence mechanism from the aspects of export product stability and export market stability using the sample data of Chinese listed companies from 2001 to 2016. Heterogeneity analysis indicates that digital transformation has a more significant impact on promoting the export stability of foreign-funded enterprises, private enterprises, labor-intensive enterprises, and enterprises in the central and western regions than state-owned enterprises, technology-intensive, capital-intensive enterprises, and enterprises in the eastern region. The mechanism analysis shows that enterprise technological innovation, enterprise total factor productivity, and enterprise export diversification level are important influence mechanisms of digital transformation on enterprises' export stability. The findings from the moderating effect analysis reveal that the government values the advancement of sports enterprises and can positively modulate the effects of digital transformation on enterprises' export stability.

Does the application of industrial robots promote export green transformation? Evidence from Chinese manufacturing enterprises

Green exports are key in propelling China's foreign trade toward high-quality development. Based on rigorous theoretical analysis, this article employs comprehensive data from the International Federation of Robotics (IFR) from 2006 to 2014, along with data from the China Customs and industrial enterprise databases, to evaluate the impact of industrial robot utilization on fostering the green transformation of exports. The results reveal that the application of industrial robots unequivocally contributes to advancing the eco-friendly transformation of exports. This conclusion withstands endogeneity and robustness tests. In particular, industrial robots directly promote the green transformation of exports and exert an indirect influence through technological and scale effects. Technological effects can be divided into technological progress and green production, while scale effects relate to enterprise size and industry competitiveness. In terms of heterogeneity, the promoting effect of industrial robot utilization on the green transformation of exports is more pronounced in foreign-funded enterprises, technology-intensive enterprises, and enterprises in the eastern region. To efficiently leverage policy effects and facilitate the green transformation of exports, this article suggests strengthening policy guidance, providing special funds, tax incentives, and rewards, enhancing enterprise research and development capabilities, and encouraging domestic and non-technology-intensive enterprises, and enterprises in the eastern region to utilize industrial robots.

Research on the path of green technology innovation driven by the Environmental Protection Tax Law: Based on data of heavy polluting enterprises.

Environmental Protection Tax Law (EPTL) is a compulsory environmental regulation measure adopted by China to deal with environmental problems. However, with the advancement of implementation, the EPTL produces a dissimilation effect and damages the realization of the Porter hypothesis effect. The study examines the dissimilation effect of green technology innovation regulated by the EPTL using sample data from heavy pollution firms in China. According to the empirical test results: (1) the coordination between levies and administrations, differential tax rate setting, tax information sharing, definition of the scope of levy and administration, tax declaration counseling, and tax rate level verification produce the dissimilation effect; (2) the Porter hypothesis effect of the EPTL is the most significant in medium-sized enterprises and foreign-funded enterprises. By constructing the research model group of dissimilation effect, this study analyzes the application of environmental regulation in China's social and economic background, thus providing a reference for developing of the green economy.

Who Exactly Has China's Pilot Free Trade Zone Attracted？ —— Evidence from Quasi Natural Experiments Based on 282 Cities

The pilot free trade zone is an institutional attempt under China's opening-up pattern, and its policy effects have played an important role in the high-quality development of the Chinese economy. Based on the balanced panel data of 282 cities in China from 2008 to 2021, this article adopts a multi-stage difference method and takes the establishment of free trade zones as a quasi-natural experiment to explore the role of free trade experiments in attracting enterprises from different sources. The main conclusion of the study is that the establishment of the free trade zone has significantly increased the proportion of enterprises in Chinese Mainland in the city, but also significantly squeezed out foreign-funded enterprises and Chinese Hong Kong, Macao and Taiwan funded enterprises. This conclusion has passed a series of robustness tests; The study also found that foreign-funded enterprises exhibit higher resilience when facing pressure than enterprises from Chinese Hong Kong, Macao, and Taiwan in China. Heterogeneity analysis found that the crowding out effect only works in cities in China's coastal provinces. The study suggests that in order to attract foreign-funded enterprises and more effectively promote the operation of enterprises from Chinese Hong Kong, Macao and Taiwan in cities of Chinese Mainland, policy makers need to enhance the competitive advantages of foreign-funded enterprises and enterprises from Chinese Mainland, Macao and Taiwan compared with enterprises in mainland China, so as to diversify the source of enterprises in cities and expand the level of opening up.

Analysis of KFC's localized marketing strategy in China

In today's information society, international competition is intensifying, and the pace of internationalization of enterprises is also accelerating. Many foreign-funded enterprises are no longer limited to domestic production and operation, but are gradually opening up to overseas and gradually occupying overseas markets through excellent strategic marketing. With the rapid development of China's economy, multinational companies from all over the world have also begun to invest in China, and among these multinational companies, KFC has performed extremely well. It has been 36 years since KFC entered the Chinese catering market, and after more than 30 years of development, the two giants of KFC and McDonald's have basically achieved a monopoly position in China's "foreign fast food" market. The main reason for KFC's success is its localized marketing strategy. This article will focus on the development history of KFC, China's localization strategy, and comparison with McDonald's, hoping to provide some references for the development of Chinese multinational companies in overseas markets.

A Study on the Recent Trends of Entrepreneurship in Exports

The determinants of participation in international business is a well- researched area with in both economics and business management disciplines. Such studies have largely highlighted factors external to the firm. A few enquiries in the small and medium sector have looked person- specific factors as explaining the difference in behavior between exporters and non-exporters. Taking off from these two streams, this paper delves deep into the exporting behavior of small- and medium-sized enterprises (SMEs) in two specific sectors after considering the dimensions of entrepreneur, enterprise and environment. Entrepreneurship is the sustainable driving force and stable source of economic development, and it is an important guarantee for the continuous improvement of export product quality and high-quality economic development. This paper selects entrepreneurship and export product quality as research objects. It measures the export product quality at the enterprise level using data from the China Industrial Enterprise Database and the China Customs Import and Export Trade Database. Furthermore, based on matching entrepreneurship at the macro-level and the export product quality at the micro-level, the impact and mechanism of entrepreneurship on the export product quality are empirically examined. It was found that entrepreneurial innovation and entrepreneurship further significantly contribute to the improvement of export product quality by promoting the total factor productivity of enterprises. Entrepreneurial innovation and entrepreneurship do not significantly contribute to the export product quality of state-owned and collective enterprises, while they significantly contribute to privately-owned, independent legal entities, Hong Kong–Macao–Taiwan, and foreign-funded enterprises. Furthermore, the promoting effect on privately-owned and independent enterprises is greater than that on Hong Kong–Macao–Taiwan and foreign-funded enterprises. Further analysis shows that improving the rule of law, reducing excessive government intervention, and improving the market mechanism for products and production factors, as well as vigorously developing the non-state-owned economy, will all be conducive to the cultivation and development of entrepreneurs and better promotion of the improvement of export product quality.

Dynamic effects of path dependence on regional entrepreneurship in transitional China

ABSTRACT Previous studies fall short when explaining the determinants of regional entrepreneurship in an unstable environment from a dynamic perspective. This study investigates the dynamic feedback effects of path dependence on the regional entrepreneurial activities in China. Using a sample of panel data related to 47,515,084 enterprises from 2000 to 2018, we estimate a set of panel models analyzing the effects of dynamic increasing returns and formal and informal institutional hysteresis on the new firm formation in Chinese cities. Our results provide evidence of positive relationships between peer effects from past entrepreneurial activities, past FDI and government intervention as well as the historical environment of the proportion of foreign-funded enterprises and SOEs in 1989 with the start-up rates. This study on regional entrepreneurship in the Chinese context develops a broader understanding of entrepreneurship in transition economies.

Digital product import and domestic value-added ratio of export: Theory and demonstration

Based on the matching of the database of China Industry Business Performance and China Customs Trade from 2000 to 2013, this paper constructs the digital product import index, and adopts the method of panel data modeling to systematically investigate the impact and mechanism of digital product import on the domestic value-added rate of Chinese enterprises' export from the theoretical and empirical aspects. The research finds that the import of digital products significantly promotes the improvement of the domestic value-added rate of enterprises' export, and the core conclusion is still valid after considering the endogeneity of variables, changing the measurement index and estimation method. The mechanism test finds that the import of digital products improves the domestic value-added rate of enterprises' export through two channels: cost markup and relative price. In addition, the heterogeneity test finds that the import of digital products has a stronger effect on the improvement of the domestic value-added rate of enterprises' export in non-export enterprises, pure general trading enterprises, foreign-funded enterprises, labor-intensive enterprises and enterprises in the eastern region.

Does dialect diversity improve enterprise employment? Evidence from Chinese listed companies

The employment effect of dialect diversity is not only a fundamental issue in research related to Chinese dialects; it is also of great significance for improving regional employment levels, enhancing people's livelihoods, and driving economic development in China. This paper uses data on regional dialects and listed companies in China from 2011 to 2021 to thoroughly examine the impact of dialect diversity on enterprise employment and finds that there is a significant positive correlation between them. In terms of internal mechanisms, dialect diversity can enhance enterprise employment levels by expanding the scale of their production and innovation. Further examination reveals that in terms of factor intensity, labor and production exhibit a more pronounced employment effect of dialect diversity in enterprises than capital and R&D innovation. In terms of ownership types, the employment effect of dialect diversity is strongly reflected in samples of private and foreign-funded enterprises, while its significance is not as apparent in state-owned or collective enterprises. In terms of region types, dialect diversity significantly improves the employment of enterprises in the eastern region, but suppresses the employment of enterprises in other regions. This study provides conclusions on the employment effect of dialects within Chinese enterprises. It also lays a crucial foundation for implementing scale enhancement mechanisms in production and innovation, improving regional support policies and enterprise management systems, and leveraging the employment promotion effect of dialect diversity.

International related-party trade, institutional differences and performance of foreign-funded enterprises

Based on the resource-based view, this paper attempts to analyze the impact of international related-party trade on the performance of foreign-funded enterprises in China from the perspective of value creation. The findings of this paper are as follows. (1) the greater the proportion of parent company to foreign-funded enterprises’ international related-party transactions, the better the performance of foreign-funded enterprises. (2) As the differences in legal systems increase, the role of international related-party trade in promoting performance is weakening. (3) As cultural differences increase, the role of international related-party trade in promoting performance is increasing. After considering the impact of transfer pricing, the conclusions of this paper remain unchanged.

Enhancing Enterprise Integration: Analyzing the Impacts of the Belt and Road Initiative on High-Quality Development in the People’s Republic of China

Amid the backdrop of globalization, international trade has emerged as a crucial driver of economic development. The People’s Republic of China (PRC), as the instigator and key participant in the “Belt and Road” initiative, has garnered substantial attention for its trade collaborations with other participating countries. While numerous studies have examined the impact of the initiative on the PRC’s export trade, there has been relatively limited research on its influence on imports by Chinese enterprises. Hence, this paper aims to address this gap by utilizing the PRC’s customs import data from 2010 to 2015 and focusing on enterprises located in the PRC’s core cities along the Belt and Road route. The study seeks to analyze the initiative’s impact and the underlying mechanisms it employs to shape their import patterns. The findings of this research demonstrate that the Belt and Road initiative plays a significant role in fostering “quality growth” through two primary channels: product diversity and urban innovation capability. Notably, these effects are particularly pronounced for foreign-funded enterprises, capital goods, and enterprises situated in coastal cities. By using the Belt and Road initiative as a case study, this paper provides valuable insights that can inform efforts to further enhance the impact of international cooperation, actively expand imports, and achieve the high-quality development of foreign trade.

A study of the coupling between the digital economy and regional economic resilience: Evidence from China.

The contemporary economic landscape has placed significant emphasis on the digital economy and economic resilience, progressively emerging as pivotal focal points for examining the high-quality development of economic systems. However, there remains to be more research on several critical topics. This includes the characteristics of coordinated development between the digital economy and economic resilience systems and their interdependence. In response, this study formulates a comprehensive evaluative framework for digital economy development and regional economic resilience, grounded in the intrinsic mechanisms of both domains. It conducts a thorough evaluation employing entropy weight-TOPSIS methodology. Additionally, leveraging coupling theory, a coordination model's coupling degree serves as the foundational framework for scrutinizing the symbiotic advancement of the digital economy and economic resilience, along with their interdependent nature. The research sample comprises data from 31 provinces and municipalities in China (excluding Hong Kong, Macao, and Taiwan) from 2011 to 2020. Spatial autocorrelation and Geodetector methodologies probe the evolutionary traits and driving factors underlying the coordinated developmental relationship between these two systems. The findings indicate an upward trajectory in China's annual comprehensive development index for digital economy development (from 0.233 to 0.458) and regional economic resilience (from 0.393 to 0.497). The coupling and coordination between the two systems, measured from 0.504 in 2011 to 0.658 in 2020, demonstrate a consistent growth pattern with an average annual increase of 3.01%. These levels exhibit continuous improvement, with comprehensive economic zones manifesting hierarchical results within the coupling range of [0.5, 0.8]. Notably, agglomeration development evinces a pronounced spatial positive correlation, while local Moran scattering points are primarily concentrated in localized migration leaps. Factors such as foreign-funded enterprises' total import and export volume, online payment capability, and fiber-optic cable length greatly influence the coupling relationship. In contrast, other variables exhibit a lower and more fluctuating degree of weighted impact. This study establishes a foundation for the synergistic and effective development of the digital economy and economic resilience within the Chinese region. Simultaneously, it offers valuable insights for research of related subjects in global contexts.

Human Capital, Business Environment Optimization and Foreign Enterprise Innovation

Under the background that business environment optimization has become a new competitive advantage in cultivating investment and technology introduction, the influence of business environment optimization in developing countries on the innovation willingness of foreign-funded enterprises and the moderating effect of human capital of foreign-funded enterprises are investigated. The results show that: the business environment optimization reduces the willingness of foreign enterprises to carry out technological innovation, process innovation and product innovation, and the average marginal effect increases in turn; The internal mechanism is the reduction of preferential degree of foreign enterprises and the enhancement of competitive power of domestic enterprises brought about by the optimization of business environment. The human capital of foreign-funded enterprises enhances the effect of business environment optimization on their innovation willingness, and this is achieved by enhancing the preferential degree of foreign-funded enterprises, reducing the inhibition of their innovation willingness, and promoting the competitiveness of domestic enterprises by optimizing the business environment. It is further found that the introduction of foreign enterprises has a significant innovation spillover effect, and the absorption capacity of domestic enterprises has a positive regulatory effect.

Enhancing green total factor productivity through manufacturing output servitization: A case study in China

In the context of the growing environmental pollution and resource depletion caused by traditional manufacturing industries, the need for sustainable and eco-friendly practices has become a critical issue for the upgrading and transformation of the manufacturing industry worldwide. Based on data from listed manufacturing companies in China, which is the world's largest manufacturing country and exhibits significant diversity regarding the ownership, scale and level of enterprises, the impact of manufacturing output servitization on green total factor productivity (GTFP), which is a measurement of economic efficiency that takes into account environmental impacts, is analyzed in this article. The results show that manufacturing output servitization can improve the GTFP of enterprises, and this can be achieved through mechanisms such as increased profitability and innovation capabilities. The positive effect on the GTFP of enterprises in less developed regions is greater than that in developed regions and is more significant for private and foreign-funded enterprises than for state-owned enterprises. The companies that adhere to the Global Reporting Initiative framework for environmental, social and governance reporting experience a more significant positive impact on GTFP as a result of their manufacturing output servitization efforts. This research offers valuable insights into the potential of servitization as a strategy for enhancing GTFP and provides actionable guidance for policy-makers and industry stakeholders seeking to align manufacturing practices with sustainability goals.

Entrepreneurship and Export Product Quality Improvement

Entrepreneurship is the sustainable driving force and stable source of economic development, and it is an important guarantee for the continuous improvement of export product quality and high-quality economic development. This paper selects entrepreneurship and export product quality as research objects. It measures the export product quality at the enterprise level using data from the China Industrial Enterprise Database and the China Customs Import and Export Trade Database. Furthermore, based on matching entrepreneurship at the macro-level and the export product quality at the micro-level, the impact and mechanism of entrepreneurship on the export product quality are empirically examined. It was found that entrepreneurial innovation and entrepreneurship further significantly contribute to the improvement of export product quality by promoting the total factor productivity of enterprises. Entrepreneurial innovation and entrepreneurship do not significantly contribute to the export product quality of state-owned and collective enterprises, while they significantly contribute to privately-owned, independent legal entities, Hong Kong–Macao–Taiwan, and foreign-funded enterprises. Furthermore, the promoting effect on privately-owned and independent enterprises is greater than that on Hong Kong–Macao–Taiwan and foreign-funded enterprises. Further analysis shows that improving the rule of law, reducing excessive government intervention, and improving the market mechanism for products and production factors, as well as vigorously developing the non-state-owned economy, will all be conducive to the cultivation and development of entrepreneurs and better promotion of the improvement of export product quality.

Chinese Listening and Speaking Classroom Research base on Framework of Multimodal Interactive Analysis

With the advent of the information age, people's communication behavior tends to be multimodal. The new communication mode puts forward new requirements for Chinese listening and speaking classroom teaching. Under the background of globalization, more and more foreign-funded enterprises set up overseas factories in China and send employees to China to provide technical support. In order to meet the needs of employees’ life and business in China, many companies provide Chinese language training for their employees. Chinese listening and speaking courses, which can effectively improve the level of Chinese communication, have become the main type of courses. Taking the multi-level and multi-modal interactive framework as the research framework, this paper analyzes and studies the Chinese listening and speaking class with examples, and explores the effective combination path of Chinese listening and speaking class and multi-modal interactive teaching mode. It is found that the use of reasonable modal configuration, ensuring the main role of high-intensity modes and ensuring the principal position of students in the teaching process can improve teaching efficiency, increase students' concentration time and effectively improve students' listening and speaking skills.

The impact of equity ratio opening policy on the operating performance of the Joint venture automobile enterprise

The equity ratio opening policy as a strong medicine is an important opportunity for China's car companies to break through the existing obstacles and bottlenecks, and to achieve rise and overtake. The expansion of the shares of foreign-funded enterprises in mergers and acquisitions provides sufficient funds for joint ventures, but also brings advanced technology and provides a broader development platform, which is an effective measure for enterprises to gain competitiveness in the short term. With the opening of China's market environment, more and more foreign-funded enterprises will choose to invest in Chinese enterprises through capital increase and share expansion, and study the performance impact of the joint venture automobile industry caused by the opening of the shareholding ratio will have a positive impact on Chinese enterprises to cope with changes in equity ratio policies and the sustainable development of independent brands.

Impact of digital input on enterprise green productivity: Micro evidence from the Chinese manufacturing industry

Digital input, as an important engine for high-quality development, has provided new impetus for green transformation and development of manufacturing enterprises. In this study, unique panel data samples matched from the Global Multi-regional Input-output Database from 2000 to 2014, the Chinese Industrial Enterprise database, and the Chinese Industrial Enterprise Pollution Database are used to estimate the green productivity of Chinese manufacturing enterprises by adopting a non-radial and non-angular SBM model that considers unexpected outputs. Furthermore, a panel Tobit model is adopted to empirically test the impact of digital input on the green productivity of manufacturing enterprises. The research results indicate that: (1) Digital input has a significant positive impact on the green productivity of manufacturing enterprises, and a series of robustness tests have confirmed this conclusion. This research conclusion provides micro evidence and empirical support for empowering the green transformation of manufacturing enterprises with digital economic development. (2) The heterogeneity analysis indicates that, for different enterprises, digital input contributes more significantly to green productivity in foreign-funded enterprises, state-owned enterprises, and larger-scale enterprises. Regarding industry types, digital input positively contributes to green productivity only in labor-intensive and knowledge-technology-intensive manufacturing enterprises. In terms of regions, the contribution of digital input to the green productivity of enterprises in the east and central regions and regions with higher levels of industrial agglomeration is more significant. Heterogeneity analysis from different perspectives can help optimize enterprise choice behavior and green transformation development strategies, thus achieving better digital empowerment. (3) Further mechanism tests reveal that digital input promotes the improvement of green productivity of manufacturing enterprises through the effects of technological progress, factor structure optimization, and innovation, thereby providing a feasible path for relying on digital transformation to promote the improvement of green productivity of manufacturing enterprises.

Research on Structure Features of Supply Chain from the Perspective of Complex Network

With the rapid development of global manufacturing industry, many manufacturers begin to cooperate with each other. In China, a large number of foreign-funded enterprises in the automobile industry have settled in the Chinese mainland to set up factories and cooperate with local manufacturers. It is a significant task to find a way to optimize the structure of the complex supply network in the manufacturing industry. The paper selects the data on the share ratio relationship between enterprises in the automotive supply chain network published in the China Automotive Industry Yearbook, and selects appropriate software to analyze the topology structure characteristics of the supply chain network. Through numerical analysis, we can conclude that the structure features of supply chain networks can help us identify the hidden dangers of important nodes and point out the problems existing in the supply.

Can digitalization improve enterprise sustainability?–Evidence from the resilience perspective of Chinese firms

The implementation of digitalization has gradually become an important strategy for many enterprises to improve sustainability. The text mining and principal component analysis methods were used to measure enterprise digitalization and the level of enterprise resilience from 2011 to 2019, respectively. This study then explored the impact of digitalization on enterprise resilience. This research comes to three conclusions. (1) Digitalization can improve enterprise resilience significantly, but beyond the threshold, it inhibits enterprise resilience. In other words, there is an inverted U-shaped relationship between digitalization and enterprise resilience, and the steepness of this inverted U-shape shows a marginal increasing trend. (2) Notably, Resource allocation efficiency and information accessibility play a mediating effect in the impact of digitization on enterprise resilience. Further analysis found that the improvement of enterprise resilience is not only conducive to the growth of total factor productivity but also conducive to the high-quality development of the manufacturing industry. (3) The influence of digitization on enterprise resilience in areas with a high level of marketization, labor-and technology-intensive industries, and eastern and coastal areas is more obvious. The impact of digitization on the sustainable development of small and medium-sized enterprises, and private and foreign-funded enterprises is more significant. Finally, corresponding policy suggestions are proposed.