IDEAS home Printed from https://ideas.repec.org/a/kap/jincot/v23y2023i3d10.1007_s10842-023-00407-0.html
   My bibliography  Save this article

Assessing the Impact of Digital Trade on Enterprise Competitiveness: Evidence from Chinese A-Share Listed Companies

Author

Listed:
  • Qinqin Wu

    (Jiangsu University
    Jiangsu University)

  • Mengjie Bi

    (Jiangsu University)

  • Faiza Siddiqui

    (Jiangsu University)

  • Yao Tang

    (Jiangsu University)

Abstract

Digital trade is an advanced form of digital transformation in the field of trade. China has made significant strides in the realm of digital trade, particularly in the domain of cross-border e-commerce. It is worthwhile to consider whether the dividend of digital trade benefits enterprises and fosters new competitive advantages at the micro level. This study constructs a framework for analyzing enterprise competitiveness under the background of digital trade. The digital trade development index is measured comprehensively across five dimensions with entropy weight method and TOPSIS, reflecting China’s regional diversity. A two-way fixed effects (TWFE) model is utilized to verify the influence of digital trade on enterprise competitiveness based on panel data from Chinese A-share listed companies from 2011 to 2020. The study finds that digital trade has a positive effect on enterprise competitiveness, mainly strengthening the scale factor. Furthermore, the influence of digital trade on enterprises exhibits heterogeneous characteristics. Through moderation effect testing, it is found that the positive effect of digital trade is stronger for enterprises with high participation in digital trade and market competition, while it is weakened for enterprises with high proportion of overseas business. Enterprises in China that participate in and benefit from the digital trade are mainly from non-technology-intensive industries and located in regions with better digital innovation environments, where they are more likely to adapt to the development of digital trade. Both state-owned and non-state-owned enterprises are equally affected by digital trade. Through mechanism testing, the study finds that digital trade promotes enterprise competitiveness mainly through three channels: asset expansion, cost reduction, and efficiency improvement. This research analyzes the micro-level impact effects of digital trade development on individual entities, expanding research perspectives into this field.

Suggested Citation

  • Qinqin Wu & Mengjie Bi & Faiza Siddiqui & Yao Tang, 2023. "Assessing the Impact of Digital Trade on Enterprise Competitiveness: Evidence from Chinese A-Share Listed Companies," Journal of Industry, Competition and Trade, Springer, vol. 23(3), pages 329-362, December.
    • Handle: RePEc:kap:jincot:v:23:y:2023:i:3:d:10.1007_s10842-023-00407-0
    DOI: 10.1007/s10842-023-00407-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10842-023-00407-0
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10842-023-00407-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Thierry Mayer & Marc J. Melitz & Gianmarco I. P. Ottaviano, 2021. "Market Size, Competition, and the Product Mix of Exporters," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 5, pages 109-150, World Scientific Publishing Co. Pte. Ltd..
    2. Joshua Paul Meltzer, 2015. "The Internet, Cross-Border Data Flows and International Trade," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(1), pages 90-102, January.
    3. Danvila-del-Valle, Ignacio & Estévez-Mendoza, Carlos & Lara, Francisco J., 2019. "Human resources training: A bibliometric analysis," Journal of Business Research, Elsevier, vol. 101(C), pages 627-636.
    4. Meltzer, Joshua P., 2019. "Governing Digital Trade," World Trade Review, Cambridge University Press, vol. 18(S1), pages 23-48, April.
    5. Bas, Maria & Strauss-Kahn, Vanessa, 2015. "Input-trade liberalization, export prices and quality upgrading," Journal of International Economics, Elsevier, vol. 95(2), pages 250-262.
    6. Bernard Hoekman & Ben Shepherd, 2017. "Services Productivity, Trade Policy and Manufacturing Exports," The World Economy, Wiley Blackwell, vol. 40(3), pages 499-516, March.
    7. John (Jianqiu) Bai & Daniel Carvalho & Gordon M. Phillips, 2018. "The Impact of Bank Credit on Labor Reallocation and Aggregate Industry Productivity," Journal of Finance, American Finance Association, vol. 73(6), pages 2787-2836, December.
    8. Mira Burri & Rodrigo Polanco, 2020. "Digital Trade Provisions in Preferential Trade Agreements: Introducing a New Dataset," Journal of International Economic Law, Oxford University Press, vol. 23(1), pages 187-220.
    9. Apriliyanti, Indri Dwi & Alon, Ilan, 2017. "Bibliometric analysis of absorptive capacity," International Business Review, Elsevier, vol. 26(5), pages 896-907.
    10. Caroline Freund & Diana Weinhold, 2002. "The Internet and International Trade in Services," American Economic Review, American Economic Association, vol. 92(2), pages 236-240, May.
    11. Lu, Yunguo & Zhang, Lin, 2022. "National mitigation policy and the competitiveness of Chinese firms," Energy Economics, Elsevier, vol. 109(C).
    12. Bertani, Filippo & Ponta, Linda & Raberto, Marco & Teglio, Andrea & Cincotti, Silvano, 2021. "The complexity of the intangible digital economy: an agent-based model," Journal of Business Research, Elsevier, vol. 129(C), pages 527-540.
    13. Miric, Milan & Boudreau, Kevin J. & Jeppesen, Lars Bo, 2019. "Protecting their digital assets: The use of formal & informal appropriability strategies by App developers," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    14. Fida Karam & Chahir Zaki, 2020. "A new dawn for MENA firms: service trade liberalization for more competitive exports," Applied Economics, Taylor & Francis Journals, vol. 52(1), pages 19-35, January.
    15. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    16. J. Yannis Bakos, 1997. "Reducing Buyer Search Costs: Implications for Electronic Marketplaces," Management Science, INFORMS, vol. 43(12), pages 1676-1692, December.
    17. Gnangnon, Sèna Kimm & Iyer, Harish, 2018. "Does bridging the Internet Access Divide contribute to enhancing countries' integration into the global trade in services markets?," Telecommunications Policy, Elsevier, vol. 42(1), pages 61-77.
    18. repec:hal:spmain:info:hdl:2441/6g0gsihsjmn5snc9pb0jo6hhp is not listed on IDEAS
    19. Anthony Venables, 2001. "Geography and International Inequalities: The Impact of New Technologies," Journal of Industry, Competition and Trade, Springer, vol. 1(2), pages 135-159, June.
    20. Teece, David J., 2018. "Profiting from innovation in the digital economy: Enabling technologies, standards, and licensing models in the wireless world," Research Policy, Elsevier, vol. 47(8), pages 1367-1387.
    21. Li, Guangpei & Wang, Xiaoyu & Su, Shibin & Su, Yuan, 2019. "How green technological innovation ability influences enterprise competitiveness," Technology in Society, Elsevier, vol. 59(C).
    22. Martina Francesca Ferracane & Erik van der Marel, 2020. "Patterns of trade restrictiveness in online platforms: A first look," The World Economy, Wiley Blackwell, vol. 43(11), pages 2932-2959, November.
    23. Park, YoungWon & Fujimoto, Takahiro & Hong, Paul, 2012. "Product architecture, organizational capabilities and IT integration for competitive advantage," International Journal of Information Management, Elsevier, vol. 32(5), pages 479-488.
    24. Man, Thomas W. Y. & Lau, Theresa & Chan, K. F., 2002. "The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies," Journal of Business Venturing, Elsevier, vol. 17(2), pages 123-142, March.
    25. Wen, Huwei & Chen, Wenjing & Zhou, Fengxiu, 2023. "Does digital service trade boost technological innovation?: International evidence," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    26. Erik Brynjolfsson & Brian Kahin (ed.), 2002. "Understanding the Digital Economy: Data, Tools, and Research," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262523302, December.
    27. Liu, Zhiyong & Li, Zipei, 2020. "A blockchain-based framework of cross-border e-commerce supply chain," International Journal of Information Management, Elsevier, vol. 52(C).
    28. Martina Francesca Ferracane & Janez Kren & Erik van der Marel, 2020. "Do data policy restrictions impact the productivity performance of firms and industries?," Review of International Economics, Wiley Blackwell, vol. 28(3), pages 676-722, August.
    29. Abeliansky, Ana L. & Hilbert, Martin, 2017. "Digital technology and international trade: Is it the quantity of subscriptions or the quality of data speed that matters?," Telecommunications Policy, Elsevier, vol. 41(1), pages 35-48.
    30. Andreas Lendle & Marcelo Olarreaga & Simon Schropp & Pierre‐Louis Vézina, 2016. "There Goes Gravity: eBay and the Death of Distance," Economic Journal, Royal Economic Society, vol. 126(591), pages 406-441, March.
    31. Joshua Paul Meltzer, 2015. "The Internet, Cross-Border Data Flows and International Trade," Asia and the Pacific Policy Studies 201508, Crawford School of Public Policy, The Australian National University.
    32. Javier López González & Marie-Agnes Jouanjean, 2017. "Digital Trade: Developing a Framework for Analysis," OECD Trade Policy Papers 205, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lingduo Jiang & Shuangshuang Liu & Guofeng Zhang, 2022. "Digital trade barriers and export performance: Evidence from China," Southern Economic Journal, John Wiley & Sons, vol. 88(4), pages 1401-1430, April.
    2. Geng Peng & Yixuan Tang & Kaiyou Tian, 2023. "Understanding the Nonlinear Impact of Information and Communication Technology on Carbon Emissions in the Logistics Industry of China," Sustainability, MDPI, vol. 15(18), pages 1-22, September.
    3. Ferracane,Martina Francesca & Van Der Marel,Erik Leendert, 2021. "Regulating Personal Data : Data Models and Digital Services Trade," Policy Research Working Paper Series 9596, The World Bank.
    4. Shuang Hao & Zhi Chen & Chien-Chih Wang & Che-Yu Hung, 2023. "Impact of Digital Service Trade Barriers and Cross-Border Digital Service Inputs on Economic Growth," Sustainability, MDPI, vol. 15(19), pages 1-20, October.
    5. Sèna K. Gnangnon, 2021. "Aid for Trade and services export diversification in recipient countries," Australian Economic Papers, Wiley Blackwell, vol. 60(2), pages 189-225, June.
    6. Carballo, Jerónimo & Rodriguez Chatruc, Marisol & Salas Santa, Catalina & Volpe Martincus, Christian, 2022. "Online business platforms and international trade," Journal of International Economics, Elsevier, vol. 137(C).
    7. Joël Cariolle & Michele Imbruno & Jaime de Melo, 2020. "Bilateral digital connectivity and firm participation in export markets," Working Papers hal-03182438, HAL.
    8. Michele Imbruno & Joel Cariolle & Jaime de Melo, 2022. "Digital connectivity and firm participation in foreign markets: An exporter-based bilateral analysis," Discussion Papers 2022-02, University of Nottingham, GEP.
    9. Gnangnon, Sèna Kimm, 2022. "Internet, Participation in International Trade, and Tax Revenue Instability," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 267-315.
    10. Shuzhong Ma & Zengxi Hu, 2023. "Internet penetration and multi‐product exporters: Firm‐level evidence from China," The World Economy, Wiley Blackwell, vol. 46(5), pages 1444-1470, May.
    11. Chunying Cui & Ziwei Yan, 2023. "Does the Digital Economy Promote Domestic Non-Tradable Sectors?: Evidence from China," Sustainability, MDPI, vol. 15(3), pages 1-23, February.
    12. Li, Hao & Han, Jian & Xu, Yayun, 2023. "The effect of the digital economy on services exports competitiveness and ternary margins," Telecommunications Policy, Elsevier, vol. 47(7).
    13. Wen, Huwei & Chen, Wenjing & Zhou, Fengxiu, 2023. "Does digital service trade boost technological innovation?: International evidence," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    14. Erik Marel & Martina Francesca Ferracane, 2021. "Do data policy restrictions inhibit trade in services?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(4), pages 727-776, November.
    15. Erik van der Marel, 2020. "Sources of Comparative Advantage in Data-Related Services," RSCAS Working Papers 2020/30, European University Institute.
    16. Abeliansky, Ana Lucia & Barbero, Javier & Rodriguez-Crespo, Ernesto, 2021. "ICTs quality and quantity and the margins of trade," Telecommunications Policy, Elsevier, vol. 45(1).
    17. Edgardo Arturo Ayala Gaytán, 2009. "Social network externalities and price dispersion in online markets," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 1-28, November.
    18. Cecília Hornok & Balázs Muraközy, 2019. "Markups of Exporters and Importers: Evidence from Hungary," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(3), pages 1303-1333, July.
    19. José Anson & Mauro Boffa, 2018. "Consumer Arbitrage in Cross-Border E-commerce," RSCAS Working Papers 2018/17, European University Institute.
    20. Joël Cariolle & Maëlan le Goff, 2023. "Spatial Internet Spillovers in Manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 59(8), pages 1163-1186, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jincot:v:23:y:2023:i:3:d:10.1007_s10842-023-00407-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.