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Intelligent manufacturing and firm innovation performance

Author

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  • Yu, Bo
  • Chen, Chiping

Abstract

This study examines how intelligent manufacturing (ITM) adoption influences firm innovation performance among Chinese listed manufacturing companies using panel data with 17,386 firm–year observations spanning 2010–2022 and fixed-effects regression models. Notably, ITM significantly enhances firm innovation performance measured by forward patent citations through mediating mechanisms of enhanced information transparency and improved labor productivity. Furthermore, city-level digital economy development moderates this relationship by amplifying innovation benefits. Theoretically, this study integrates absorptive capacity and resource-based perspectives to assess how Industry 4.0 technologies drive innovation in emerging markets, identify specific pathways through which ITM generates value, and demonstrates the relevance of external digital ecosystems in determining technology adoption effectiveness. Practically, the findings highlight the strategic imperative of aligning internal technological investments with external digital infrastructure capabilities, and policymakers should prioritize coordinated investments in digital infrastructure and ITM support programs to maximize innovation spillovers and competitive advantage.

Suggested Citation

  • Yu, Bo & Chen, Chiping, 2026. "Intelligent manufacturing and firm innovation performance," Finance Research Letters, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:finlet:v:88:y:2026:i:c:s1544612325023505
    DOI: 10.1016/j.frl.2025.109101
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