Manufacturing Firms In China Research Articles

Does embeddedness in strategic alliances matter for innovation efficiency? The moderating roles of government R&D subsidies and standardization

PurposeThis paper investigates the impact of strategic alliance network centrality and structural holes on firm innovation efficiency. In addition, the paper aims to explore the moderating effects of government R&D subsidies and firm technology standardization.Design/methodology/approachBased upon the literature on strategic alliance networks, this paper proposes a conceptual model with several hypotheses. The empirical analysis is based on a sample of 736 observations from 92 mechanical manufacturing firms in China from 2010 to 2017. We measured firm innovation efficiency via the DEA model and performed quantitative analysis with GMM estimation.FindingsThe results indicate that strategic alliance network centrality is positively related to firm innovation efficiency, and structural holes have a U-shaped relationship with firm innovation efficiency. Government R&D subsidies positively moderate the relationship between centrality and firm innovation efficiency. Firm technology standardization positively moderates the relationship between centrality and firm innovation efficiency and the U-shaped relationship between structural holes and firm innovation efficiency.Practical implicationsFirms should focus on improving innovation efficiency and maximizing innovation output under limited resources. Furthermore, managers ought to strengthen cooperation between firms and external alliances while promoting the utilization of strategic alliance network position resources to benefit innovation efficiency.Originality/valueThis paper considers that innovation efficiency, including input and output processes, is more representative than innovation performance, and few studies have focused on the relationship between strategic alliance networks and innovation efficiency. To fill this research gap, this paper explores the impact of strategic alliance network position embedding on innovation efficiency.

Neighboring capital imports and non-importer productivity: Evidence from geocoded manufacturing firms in China

This article examines the spillover effects of neighboring firms’ imports on the productivity of non-importers. By analyzing geocoded manufacturing firms in China, we find that capital goods imports by neighboring firms within 10 km positively impact non-importer productivity; intermediate goods imports show no clear spillover. These results hold when using imports from distant firms as instruments. Spillovers from capital imports mainly come from neighbors in upstream and downstream industries, which indicate potential supply chain effects. Learning effects from neighboring imported products are not significant. Quantitatively, neighboring capital imports raised non-importers’ average productivity by 0.99% from 2000 to 2006, surpassing gains from their own R&D participation by more than sixfold. Overall, our findings demonstrate substantial societal benefits of capital imports for non-importers connected spatially.

Supply chain concentration, digitalization and servitization of manufacturing firms

PurposeDigitalization and supply chain collaboration are central to the successful servitization of manufacturing firms. However, how digitalization interacts with supply chain structure to affect servitization decisions in manufacturing firms has been understudied. In this study, we bridge resource dependence theory (RDT) and information processing theory (IPT) to examine how supply chain concentration interacts with digitalization to affect servitization decisions in manufacturing firms.Design/methodology/approachWe tested the hypotheses using a panel dataset of 1,261 publicly listed machinery manufacturing firms in China. We addressed the endogeneity concerns using the control function approach and conducted multiple tests to ensure the robustness of the results.FindingsWe find that both supplier and customer concentration are negatively related to servitization, indicating that concentrated supplier and customer bases are hindrances to manufacturing servitization. Digitalization weakens the negative impact of customer concentration on servitization, but it strengthens the negative impact of supplier concentration on servitization.Originality/valueThe findings extend our understanding of supply chain structure and digitalization as determinants of servitization. This research also offers a nuanced view of how digitalization mitigates the negative impacts of supply chain concentration.

How Do Political and Nonpolitical Ties Affect Corporate Regulatory Participation? A Regulatory Capture Perspective

This study extends regulatory capture theory to investigate how and to what extent a firm’s political and nonpolitical ties jointly influence corporate regulatory participation. In the context of regulatory standards setting, although firms with political ties are better able to promote firm standards into industry regulations, it remains unclear whether the coexistence of firms’ nonpolitical ties (i.e., university ties and interlocked firms in our study) is more or less likely to reduce the effect of political ties. Although corporate leaders with political and nonpolitical ties may provide complementary resources, they may follow different mechanisms to drive firm actions. We, thus, argue that nonpolitical ties likely reduce the effect of political ties on regulatory standards setting. Using a sample of public manufacturing firms in China, we find evidence that supports our predictions. Our study contributes to the regulatory capture literature by redirecting attention to the dynamics of political versus nonpolitical ties.

Modelling the significance of strategic orientation on green innovation: mediation of green dynamic capabilities

The increasing recognition of environmental concerns has prompted both nations and corporations to adopt green innovation as a significant strategy for addressing environmental risks and promoting sustainable development. To excel in this pursuit, companies must cultivate green dynamic capabilities, infusing environmental considerations into their strategic decision-making processes. The purpose of this study is to investigate the association between strategic orientation components and green dynamic capabilities, as well as their impact on green product and process innovation, in medium-to-large-sized manufacturing firms in China. Employing a quantitative methodology, an online cross-sectional research design was used to gather 582 valid responses through a structured questionnaire. Results indicated a positive association between learning orientation and green dynamic capabilities. Furthermore, green dynamic capability was found to mediate the relationship between learning orientation and green product and process innovation. However, no significant relationship was observed between green entrepreneurial orientation, market orientation, internationalisation orientation, and green dynamic capabilities. By conducting multi-group analysis and studying the context of Chinese manufacturing firms, this research contributes new insights into the relationship between resource-based theory constructs and green innovation, including the integration of green dynamic capabilities. The results emphasise the significance of adopting a learning mindset, developing green dynamic capabilities, and fostering green innovation. These findings offer useful insights for the Chinese manufacturing industry, enabling it to strengthen its competencies in green innovation.

The effect of strategic supply management on operational and innovation performance: the mediating role of external supply resources mobilization

PurposeBased on the resource orchestration perspective, this study aims to explore whether and how strategic supply management (SSM) affects firms’ operational performance (OP) and innovation performance (IP).Design/methodology/approachSurvey data comprising 404 valid responses are collected from traditional manufacturing firms in China. Confirmatory factor analysis confirms the reliability and validity of the measures. Structural equation modeling and bootstrapping are used to test all hypotheses.FindingsSSM improves firms’ OP and IP. Furthermore, supply base resource mobilization (SBRM) and supply market resource mobilization (SMRM) have partial mediating effects on the relationships. SBRM has a greater effect on OP, while SMRM has a greater effect on IP. In addition, these two types of resource mobilization form different mediating paths between SSM and firm performance, and environmental uncertainty positively moderates this relationship.Originality/valueWith the development of national innovation strategies such as the “Made in China 2025” plan, the Chinese manufacturing industry aims to move from low-cost manufacturing to innovative and high-quality manufacturing. The study’s findings further emphasize the role of purchasing and supply management in external resource management. In addition to demonstrating the differential effects of heterogeneous resource mobilization on OP and IP, different mediation pathways through external resources mobilization are identified in the relationship between SSM and firm performance.

Digital transformation and low-carbon technology innovation in manufacturing firms: The mediating role of dynamic capabilities

Green challenges such as global warming call for deeper low-carbon technology changes in manufacturing firms, and digital transformation (DT) may play a major role. Most existing studies have investigated the impact of DT as a whole on green technology innovation but lack a dynamic mechanism analysis from a process perspective. Therefore, this article proposes a theoretical framework for multistage DT to drive low-carbon technology innovation (LCTI) in manufacturing firms, which is closely linked to three dynamic capabilities (DCs). Based on the panel data of A-share manufacturing firms in China from 2011 to 2019, this article finds the following. First, DT effectively promotes LCTI, and this effect is a “leverage effect” superimposed on existing innovation. Second, the theoretical mechanism shows that the data analysis, data operation, and data empowerment stages of DT enhance the absorptive capacity, innovation capacity, and adaptive capacity of enterprises, respectively, which in turn promote LCTI. Empirical tests support the mediating effects of the first two capabilities; however, adaptive capacity is validated to be effective only for low-tech firms due to the limited increase in strategic flexibility of high-tech firms by marginal DT enhancement. Third, the heterogeneity analysis shows that the promotion effect of DT on LCTI is stronger for carbon reduction and decarbonization technologies, more significant for low-emission firms, and stronger for firms in the cohort network. These conclusions add new microevidence of the environmental benefits of the digital economy and provide new explanations for opening the “black box” of DT and LCTI based on a process perspective. At the same time, this work can help manufacturing firms in developing countries follow the low-carbon transformation path by independent innovation and, moreover, reduce the originally enormous amounts of energy consumption and carbon emissions of these countries and contribute to the response to global warming and the energy crisis.

Assessing Chinese Textile and Apparel Industry Business Sustainability: The Role of Organization Green Culture, Green Dynamic Capabilities, and Green Innovation in Relation to Environmental Orientation and Business Sustainability

The current study aims to evaluate the role of environmental orientation (EO) on green dynamic capabilities (GDCs), organization green culture (OGC), and green innovation (GIN) toward business sustainability (BUS) in the context of Chinese textile and apparel manufacturing firms. Natural resources-based view (NRBV) and dynamic capabilities view (DCV) were used as the theoretical lenses of the research. This study is quantitative, and a purposive sampling technique was employed to collect data from the managers working in textile and apparel manufacturing firms in China. The sample size consisted of 339 managers. Partial least-square structural equation modeling (PLS-SEM) was employed to analyze the data. The study’s findings show that EO significantly and positively influences OGC and GDCs. However, the positive influence of EO on GIN was insignificant. Moreover, the result indicates that GIN is a significant mediator in the relationships between OGC and BUS and GDCs and BUS. The results demonstrate how the Chinese textile and apparel industry EO improves GDCs, GIN, and OGC, which, in turn, benefits achieving long-term business sustainability.

A Multilevel Study of Change-Oriented Leadership and Commitment: The Moderating Effect of Group Emotional Contagion.

The purpose of this study is to explore the effects of change-oriented leadership on employee change commitment, and the underlying cross-level mediating and moderating effects. Multilevel analysis of data from 583 respondents in 55 major manufacturing firms in China from 2021, reveals that change-oriented leadership explains the significant variance in change commitment. Based on Emotions as Social Information Theory and Social Exchange Theory, this study investigates the relationship between change-oriented leadership and change commitment fully mediated by emotion regulation. This study also confirms that positive group emotional contagion has moderating effects on the relationship between change-oriented leadership and emotion regulation. In addition, negative group emotional contagion has moderating effects on the relationship between emotion regulation and change commitment. Furthermore, the moderated mediation of negative group emotional contagion is identified. This study makes a unique contribution through its multilevel approach to examining the relationship between leadership, emotion, and commitment during organizational change.

Can customization promote product innovation in the global B2B market? Evidence from export manufacturing firms from emerging markets

PurposeExport manufacturing firms from emerging markets can better meet customer needs by providing customization, which leads to competitive advantages. Although both practice and academic research have deeply discussed customization, the question of whether customization promotes export manufacturing firms' product innovation in the global B2B market is largely unexplored. The purpose of this paper is to address this issue.Design/methodology/approachThis paper collects survey data from 2,248 export manufacturing firms in China and uses hierarchical moderated regression to explore the relationship between customization and product innovation in the global B2B market and their boundary conditions.FindingsThis research shows that customization positively affects export manufacturing firms' product innovation in the context of the global B2B market, and it shows that internal governance structure (contract governance and relationship governance) and external governance structure (legal enforceability) can be used as boundary conditions that affect the relationship. Specifically, contract governance has an inverted U-shaped moderating effect on the relationship between customization and product innovation; moreover, relationship governance and legal enforceability can strengthen the positive relationship between customization and product innovation.Originality/valueThe study explores the relationship between customization and product innovation in the global B2B market and examines the moderating effect of internal and external governance structures. In addition, the study enriches the research related to customization and product innovation in the context of the global B2B market and provides essential practical insight into the survival of export manufacturing firms from emerging markets.

Patterns of Technological Entrepreneurship and Their Determinants: Evidence from Technology-Based Manufacturing Firms in China

Abstract In this study, we argue that managing technological entrepreneurship effectively is crucial for firms’ competitive advantage and high performance. By using an inductive approach of a multiple-case study of Chinese technology-based manufacturing firms, we identify four complementary patterns of technological entrepreneurship (i.e. in-house R&D, R&D acquisition, R&D alliance, and R&D contracting) and find that possessing the uniqueness of knowledge assets and technological capabilities and capturing the value of knowledge assets and technological capabilities are the major determinants for firms to choose these patterns. Our study develops an integrative framework of technological entrepreneurship for emerging economy firms. Implications for theory, practice, and policy are discussed.

Do more concentrated supplier portfolios benefit firm innovation? The moderating roles of financial slack and growth opportunities

PurposeFirms are increasingly depending on supplier portfolios in the quest for firm innovation. However, whether concentrated supplier portfolios are beneficial to innovation remains highly disputed. This study aims to investigate the effect of supplier portfolio concentration on firm innovation and the contingencies that shape this effect.Design/methodology/approachThe authors build on the knowledge search view to theorize a U-shaped effect of supplier portfolio concentration on firm innovation and further propose that the U-shaped effect is contingent on financial slack and growth opportunities. The authors collected panel data from 1,320 manufacturing firms in China. The negative binomial regression analyses were performed to test the hypotheses.FindingsSupplier portfolio concentration has a U-shaped effect on firm innovation. This U-shaped effect is weakened and flipped by financial slack but strengthened by growth opportunities.Originality/valueThe findings extend current understandings of the influence of supplier portfolio on firm innovation by clarifying the U-shaped effect of supplier portfolio concentration on innovation and the circumstances under which supplier portfolio concentration is more effective for firm innovation.

To Be or Not to be Tied on Social Media? TTF Effect of Interpersonal Guanxi and SM Strategies

The adoption of boundary spanners’ social media (SM) strategies are controversial. On the one hand, managers are always concerned about boundary spanners’ heavy SM use in non-productive activities, which reduces their work efficiency. As a result, access to SM is discouraged. On the other hand, work-based SM encourages firms to advocate incorporating boundary spanners’ work-related tasks because SM can enhance communication and expand information exchange. To further clarify the different effects of work-based and social-based SM strategies and drawing on task-technology fit (TTF) theory, this study examines how SM strategies influence the efficacy of interpersonal guanxi by exploring the moderating effects of work-based SM strategies (WSM) and social-based SM strategies (SSM) in China’s emerging economy. We surveyed 550 valid respondents of industrial manufacturing firms in China to validate the research framework. The results of statistical analysis show that there exist TTF fit effects between interpersonal guanxi and SM strategies. Specifically, interpersonal guanxi is positively associated with interfirm coordination and exchange performance. Furthermore, work-based SM strategies strengthen the effects of interpersonal guanxi on interfirm coordination while weakening the effects of interpersonal guanxi on exchange performance. However, social-based SM strategies enhance the effects of interpersonal guanxi on exchange performance while deterring the effects of interpersonal guanxi on interfirm coordination. The findings endorse the importance of prior literature supporting the use of interpersonal guanxi. Theoretical and practical implications are discussed by the end.

Effect of agglomeration on firms’ research and development investment: a U‐shaped relationship

Extant research on how agglomeration affects firms’ R&D investment reveals conflicting views. Some studies suggest that, owing to free riding arising from knowledge spillovers, agglomeration reduces firms’ R&D investment, whereas others find that it creates additional incentives for innovation through intensifying local competition, thereby increasing firms’ R&D investment. Thus, this study attempts to reconcile these two conflicting views. We propose a U‐shaped relationship between agglomeration and firms’ R&D investment; that is, when the extent of agglomeration is low, knowledge spillover effects are important, while local competition is negligible. The free riding effects dominate local competition effects. Therefore, firms’ R&D investment decreases with the extent of agglomeration at a decreasing rate. By contrast, when the extent of agglomeration is high, local competition becomes the dominant force. Consequently, firms’ R&D investment increases with the extent of agglomeration at an increasing rate. Using data from 299,256 manufacturing firms in China, we find that firms’ R&D investment first decreases with the extent of agglomeration to reach a minimum, then increases as the extent of agglomeration continues to rise. These results indicate that there is a robust U‐shaped relationship between agglomeration and firms’ R&D investment.

Influence of Product Innovation Strategy on Performance of Large Manufacturing Firms in China

Product innovation is a business growth strategy that aims to create new value by improving existing products and developing new ones. Thus, the study sought to examine the influence of product innovation strategy on the performance of large manufacturing firms in China. The study used a descriptive research design. The targeted population included selected large manufacturing firms in Beijing. The observation unit entailed the managers and those employees in the middle management level, such as supervisors. The collection of the data was done using the questionnaires. Th study findings showed that product innovation strategy is positively and significantly related to performance (β=0.684, p=0.004). It was found that product innovation strategy explains 15.74% of the variations in the performance of manufacturing firms in China. The research concluded a positive relationship exists between product innovation strategy and performance. In ensuring product innovation, the firm enhances the quality of manufacturing in the elements of the existing products. The company likewise develops fresh items with components that vary completely from the existing ones. The study recommended that firms develop an environment that cultivates product innovation. Companies should continually encourage product innovation as this technique provides a framework for developing new products or improving existing items' performance, cost or quality. Manufacturing firms need to execute policies that urge a process innovation culture. Firms devoted to constant innovation and change need to establish a set of standards and processes. The aspect of product innovation should be put as one of the enabling strategies that could drive the performance of the companies and increase their competitive advantage, thus higher performance. Keywords: Product innovation strategy, performance, large manufacturing firms, China

How do businesses achieve sustainable success and gain a competitive advantage in the green era?

PurposeTo attain green economic efficiency, small, micro and medium-sized firms must follow environmental paradigms. This research aims to discover the relationship between green intellectual capital, green entrepreneurial orientation, green marketing, green organizational culture and competitive advantage strategies to attain sustainable manufacturing business success.Design/methodology/approachToday, many companies have accepted their responsibilities, that their operations should not harm the environment. This paper aims to discover the relationship between green factors and competitive advantage strategies to succeed in sustainable manufacturing. The employees of the large manufacturing firms in China are the sample population of the present investigation. Through simple random sampling, surveys were distributed via email. The present study was a quantitative analysis. The analytical tool utilized here was structural equation modeling and SmartPLS program applications.FindingsThe empirical outcomes find that green intellectual capital positively influences competitive advantages and sustainable success in business. In addition, the impact of green entrepreneurial orientation on competitive advantages and sustainable success is positive and significant. The findings illustrated that green marketing is an essential factor in competitive advantage and sustainable success in business. Another point is that green organizational culture positively affects competitive advantages and sustainable success. Finally, competitive advantages have significantly affected sustainable success in business.Practical implicationsThe outcomes help specialists enhance their practices to reflect sustainable business efficiency and competitive advantages.Originality/valueThis is the first study that examined businesses' sustainable success and green factors in a comprehensive model and using a specific sample of manufacturing companies based on green technologies.

Effects of political networking capability and strategic capability on exploratory and exploitative innovation: evidence from traditional manufacturing firms in China

PurposeThis study examines the effect of political networking capability (PNC) and strategic capability on exploratory innovation/exploitative innovation through the mediation of absorptive capability (AC).Design/methodology/approachUsing empirical survey data collected from 153 traditional manufacturing firms (TMFs) in China, the authors apply partial least squares structural equation modeling (PLS-SEM) combined with mediation analyses to test hypotheses.FindingsPNC has a higher impact on exploratory innovation than exploitative innovation through AC. The authors thus provide novel empirical insights into independent variables of firms' ambidextrous innovation and their implementation mechanisms.Research limitations/implicationsThe authors highlight a unique situation of China and contribute to the literature on PNC and AC. The findings demonstrate that AC plays an important role in configuring government-obtained external resources into new products, thus influencing ambidextrous innovation strategic decisions.Practical implicationsTMFs' executives should enhance PNC to obtain more resources to conduct exploratory and exploitative innovation. Government officials and policymakers should strengthen the supervision of TMFs' innovation activities and adopt effective measures to ensure that TMFs could conduct more exploratory innovation as governments expected.Originality/valueThis study provides new insights by bridging research gaps in the literature and advances the insights of how TMFs' PNC/strategic capability directly and indirectly fosters exploratory and exploitative innovation via the mediating role of AC in China.

How does green credit policy affect total factor productivity of the manufacturing firms in China? The mediating role of debt financing and the moderating role of environmental regulation.

Treating the green credit policy issued in 2012 as a quasi-natural experiment, this study has investigated the impact of green credit policy on total factor productivity of the manufacturing firms in China by using the panel data of the A-share firms listed on the Shanghai and Shenzhen stock exchanges during 2008 and 2020, with the consideration of the mediating role of debt financing and the moderating role of environmental regulation simultaneously. The results show that green credit policy has a negative effect on total factor productivity of the manufacturing firms in China. Empirical evidence also shows that debt financing could oppositely mediate the nexus between green credit policy and total factor productivity of the manufacturing firms in China by both inhibiting long-term loans and promoting short-term loans. In addition, the moderating role of environmental regulation is partially and conditionally established. Furthermore, the regional heterogeneity and the property rights heterogeneity are proved. Finally, conclusions and policy implications are provided to improve the quality of green credit policy in the future.

Accelerating Green Innovation Performance from the Relations of Network Potential, Absorptive Capacity, and Environmental Turbulence

The demand for sustainable development and the advantages of industries are expediting over time with the triggering of green innovation performance (GIP). Improving a firm’s GIP, especially in manufacturing industries, can accelerate green development and mitigate the global-concerned environmental issues. Thus, to investigate GIP from its antecedent factors, we delineate the relationship between network potential, absorptive capacity, environmental turbulence, and GIP based on social network theory, organizational learning theory, and contingency theory. We tested our hypotheses based on 233 sets of questionnaire surveys from high-tech manufacturing firms in China through deploying the hierarchical regression and bootstrap method. Our empirical findings reveal that the network potential dimensions, including network position centrality (NPC), network structure richness (NSR), and network relationship closeness (NRC), significantly positively impacted the GIP. The absorptive capacity (AC) partially mediated the relationship between the network potential dimensions and GIP. Environmental turbulence (ET) as an essential mechanism not only positively moderated the relationship between AC and GIP but also enhanced the AC mediation effect. These findings indicate that manufacturing firms should continue to improve network potential and AC and respond rapidly to changes in the external environment to enhance GIP, consequently contributing to the sustainable development of the economy.

CEO environmentally responsible leadership and firm environmental innovation: A socio-psychological perspective

Manufacturing firms face increasing pressure to seek innovative solutions to environmental perils. Addressing such challenges requires responsible leadership that embraces a normative and stewardship approach for environmentally sustainable system. However, the question of whether and how CEO environmentally responsible leadership can drive firm environmental innovation has yet to be addressed. We develop and test a serial mediation model that specifies socio-psychological mechanisms through which environmentally responsible CEOs influence firm environmental innovation. To test the model, we use a two-wave multi-source dataset of top- and middle-level managers in 125 manufacturing firms in China. We find that environmentally responsible CEOs drive environmental innovation by developing a sense of collective environmental identification, which facilitates middle-level managers’ engagement in the organizational citizenship behavior associated with a more sustainable environment. Our research delineates the power of CEOs’ responsible leadership and its potential to help organizations that face growing pressure to increase environmental innovation.