IDEAS home Printed from https://ideas.repec.org/a/eee/techno/v119y2023ics016649722200092x.html
   My bibliography  Save this article

Government digital initiatives and firm digital innovation: Evidence from China

Author

Listed:
  • Wang, Xincheng
  • Li, Yuan
  • Tian, Longwei
  • Hou, Ye

Abstract

Although the prevalence of digital innovation has attracted increasing attention from policymakers, academics, and practitioners, it remains under-theorized. Using the attention-based view, we examine why and how government digital-initiative intensity drives a firm’s digital innovation. Using a mixed-methods approach and the unique context of China’s aspirant economy, we find that managerial digital attention mediates the link between government digital-initiative intensity and firm digital innovation. Firm political guanxi and digital leadership have moderating effects on the relationship between government digital-initiative intensity and managerial digital attention, and the relationship between managerial digital attention and firm digital innovation. These findings have important theoretical and practical implications.

Suggested Citation

  • Wang, Xincheng & Li, Yuan & Tian, Longwei & Hou, Ye, 2023. "Government digital initiatives and firm digital innovation: Evidence from China," Technovation, Elsevier, vol. 119(C).
  • Handle: RePEc:eee:techno:v:119:y:2023:i:c:s016649722200092x
    DOI: 10.1016/j.technovation.2022.102545
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S016649722200092X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.technovation.2022.102545?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. Zhang, Min & Qi, Yinan & Wang, Zhiqiang & Zhao, Xiande & Pawar, Kulwant S., 2019. "Effects of business and political ties on product innovation performance: Evidence from China and India," Technovation, Elsevier, vol. 80, pages 30-39.
    2. Amy J. Hillman & Albert A. Cannella & Ramona L. Paetzold, 2000. "The Resource Dependence Role of Corporate Directors: Strategic Adaptation of Board Composition in Response to Environmental Change," Journal of Management Studies, Wiley Blackwell, vol. 37(2), pages 235-256, March.
    3. Jing Li & Jun Xia & Edward J. Zajac, 2018. "On the duality of political and economic stakeholder influence on firm innovation performance: Theory and evidence from Chinese firms," Strategic Management Journal, Wiley Blackwell, vol. 39(1), pages 193-216, January.
    4. Youngjin Yoo & Richard J. Boland & Kalle Lyytinen & Ann Majchrzak, 2012. "Organizing for Innovation in the Digitized World," Organization Science, INFORMS, vol. 23(5), pages 1398-1408, October.
    5. William Ocasio, 2011. "Attention to Attention," Organization Science, INFORMS, vol. 22(5), pages 1286-1296, October.
    6. 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.
    7. Defeng Yang & Aric Xu Wang & Kevin Zheng Zhou & Wei Jiang, 2019. "Environmental Strategy, Institutional Force, and Innovation Capability: A Managerial Cognition Perspective," Journal of Business Ethics, Springer, vol. 159(4), pages 1147-1161, November.
    8. Hongjin Zhu & Pengji Wang & Chris Bart, 2016. "Board Processes, Board Strategic Involvement, and Organizational Performance in For-profit and Non-profit Organizations," Journal of Business Ethics, Springer, vol. 136(2), pages 311-328, June.
    9. Longwei Tian & Caleb H. Tse & Xunyong Xiang & Yuan Li & Yigang Pan, 2021. "Social movements and international business activities of firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(6), pages 1200-1214, August.
    10. William Ocasio & Tomi Laamanen & Eero Vaara, 2018. "Communication and attention dynamics: An attention‐based view of strategic change," Strategic Management Journal, Wiley Blackwell, vol. 39(1), pages 155-167, January.
    11. Aaron D. Hill & Tessa Recendes & Jason W. Ridge, 2019. "Second‐order effects of CEO characteristics: How rivals' perceptions of CEOs as submissive and provocative precipitate competitive attacks," Strategic Management Journal, Wiley Blackwell, vol. 40(5), pages 809-835, May.
    12. Christopher S. Tuggle & David G. Sirmon & Christopher R. Reutzel & Leonard Bierman, 2010. "Commanding board of director attention: investigating how organizational performance and CEO duality affect board members' attention to monitoring," Strategic Management Journal, Wiley Blackwell, vol. 31(9), pages 946-968, September.
    13. Nambisan, Satish & Wright, Mike & Feldman, Maryann, 2019. "The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    14. John Joseph & William Ocasio, 2012. "Architecture, attention, and adaptation in the multibusiness firm: General electric from 1951 to 2001," Strategic Management Journal, Wiley Blackwell, vol. 33(6), pages 633-660, June.
    15. Vásquez-Urriago, Ángela Rocío & Barge-Gil, Andrés & Modrego Rico, Aurelia, 2016. "Science and Technology Parks and cooperation for innovation: Empirical evidence from Spain," Research Policy, Elsevier, vol. 45(1), pages 137-147.
    16. Chen, Shouming & Bu, Miao & Wu, Sibin & Liang, Xin, 2015. "How does TMT attention to innovation of Chinese firms influence firm innovation activities? A study on the moderating role of corporate governance," Journal of Business Research, Elsevier, vol. 68(5), pages 1127-1135.
    17. Dominic S.K. Lim & Eric A. Morse & Ronald K. Mitchell & Kristie K. Seawright, 2010. "Institutional Environment and Entrepreneurial Cognitions: A Comparative Business Systems Perspective," Entrepreneurship Theory and Practice, , vol. 34(3), pages 491-516, May.
    18. Steven Si & David Ahlstrom & Jiang Wei & John Cullen, 2020. "Business, Entrepreneurship and Innovation Toward Poverty Reduction," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 32(1-2), pages 1-20, January.
    19. Steven Si & Xuebao Yu & Aiqi Wu & Shouming Chen & Song Chen & Yiyi Su, 2015. "Entrepreneurship and poverty reduction: A case study of Yiwu, China," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 119-143, March.
    20. Markku V. J. Maula & Thomas Keil & Shaker A. Zahra, 2013. "Top Management’s Attention to Discontinuous Technological Change: Corporate Venture Capital as an Alert Mechanism," Organization Science, INFORMS, vol. 24(3), pages 926-947, June.
    21. Amy J. Hillman & Asghar Zardkoohi & Leonard Bierman, 1999. "Corporate political strategies and firm performance: indications of firm‐specific benefits from personal service in the U.S. government," Strategic Management Journal, Wiley Blackwell, vol. 20(1), pages 67-81, January.
    22. Carl ?berg & Niloofar Kazemargi & Max Bankewitz, 2017. "Strategists on the Board in a Digital Era," Business and Management Research, Business and Management Research, Sciedu Press, vol. 6(2), pages 40-51, June.
    23. Eric P. S. Baumer & David Mimno & Shion Guha & Emily Quan & Geri K. Gay, 2017. "Comparing grounded theory and topic modeling: Extreme divergence or unlikely convergence?," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 68(6), pages 1397-1410, June.
    24. Ferreira, João J.M. & Fernandes, Cristina I. & Ferreira, Fernando A.F., 2019. "To be or not to be digital, that is the question: Firm innovation and performance," Journal of Business Research, Elsevier, vol. 101(C), pages 583-590.
    25. Indra Utoyo & Avanti Fontana & Aryana Satrya, 2020. "The Role Of Entrepreneurial Leadership And Configuring Core Innovation Capabilities To Enhance Innovation Performance In A Disruptive Environment," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(06), pages 1-40, August.
    26. Jiang, Junyan & Zhang, Muyang, 2020. "Friends with benefits: Patronage networks and distributive politics in China," Journal of Public Economics, Elsevier, vol. 184(C).
    27. John Joseph & Alex J. Wilson, 2018. "The growth of the firm: An attention‐based view," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1779-1800, June.
    28. Weerawardena, Jay & O'Cass, Aron & Julian, Craig, 2006. "Does industry matter? Examining the role of industry structure and organizational learning in innovation and brand performance," Journal of Business Research, Elsevier, vol. 59(1), pages 37-45, January.
    29. Andrew J. Hoffman & William Ocasio, 2001. "Not All Events Are Attended Equally: Toward a Middle-Range Theory of Industry Attention to External Events," Organization Science, INFORMS, vol. 12(4), pages 414-434, August.
    30. Garry D. Bruton & David Ahlstrom & Juanyi Chen, 2021. "China has emerged as an aspirant economy," Asia Pacific Journal of Management, Springer, vol. 38(1), pages 1-15, March.
    31. Sergio G. Lazzarini, 2015. "Strategizing by the government: Can industrial policy create firm-level competitive advantage?," Strategic Management Journal, Wiley Blackwell, vol. 36(1), pages 97-112, January.
    32. Larcker, David F. & Rusticus, Tjomme O., 2010. "On the use of instrumental variables in accounting research," Journal of Accounting and Economics, Elsevier, vol. 49(3), pages 186-205, April.
    33. Vangelis Souitaris & B. M. Marcello Maestro, 2010. "Polychronicity in top management teams: The impact on strategic decision processes and performance of new technology ventures," Strategic Management Journal, Wiley Blackwell, vol. 31(6), pages 652-678, June.
    34. Kwon, Heeyeul & Kim, Jieun & Park, Yongtae, 2017. "Applying LSA text mining technique in envisioning social impacts of emerging technologies: The case of drone technology," Technovation, Elsevier, vol. 60, pages 15-28.
    35. Robin Stevens & Nathalie Moray & Johan Bruneel & Bart Clarysse, 2015. "Attention allocation to multiple goals: The case of for-profit social enterprises," Strategic Management Journal, Wiley Blackwell, vol. 36(7), pages 1006-1016, July.
    36. Tina C Ambos & Ulf Andersson & Julian Birkinshaw, 2010. "What are the consequences of initiative-taking in multinational subsidiaries?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(7), pages 1099-1118, September.
    37. Weiqi Dai & Felix Arndt & Mingqing Liao, 2020. "Hear it straight from the horse’s mouth: recognizing policy-induced opportunities," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 32(5-6), pages 408-428, May.
    38. William Ocasio & Tomi Laamanen & Eero Vaara, 2018. "Communication and Attention Dynamics : an Attention-Based View of Strategic Change," Post-Print hal-02312047, HAL.
    39. Yang Bao & Anindya Datta, 2014. "Simultaneously Discovering and Quantifying Risk Types from Textual Risk Disclosures," Management Science, INFORMS, vol. 60(6), pages 1371-1391, June.
    40. William Ocasio, 1997. "Towards An Attention‐Based View Of The Firm," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 187-206, July.
    41. Jaegul Lee & Nicholas Berente, 2012. "Digital Innovation and the Division of Innovative Labor: Digital Controls in the Automotive Industry," Organization Science, INFORMS, vol. 23(5), pages 1428-1447, October.
    42. Laura K. Nelson, 2020. "Computational Grounded Theory: A Methodological Framework," Sociological Methods & Research, , vol. 49(1), pages 3-42, February.
    43. Theresa S. Cho & Donald C. Hambrick, 2006. "Attention as the Mediator Between Top Management Team Characteristics and Strategic Change: The Case of Airline Deregulation," Organization Science, INFORMS, vol. 17(4), pages 453-469, August.
    44. Srinivasan, Mahesh & Srivastava, Prashant & Iyer, Karthik N.S., 2020. "Response strategy to environment context factors using a lean and agile approach: Implications for firm performance," European Management Journal, Elsevier, vol. 38(6), pages 900-913.
    45. Manuel Trajtenberg & Adam B. Jaffe & Michael S. Fogarty, 2000. "Knowledge Spillovers and Patent Citations: Evidence from a Survey of Inventors," American Economic Review, American Economic Association, vol. 90(2), pages 215-218, May.
    46. Amon Chizema & Xiaohui Liu & Jiangyong Lu & Lan Gao, 2015. "Politically connected boards and top executive pay in Chinese listed firms," Strategic Management Journal, Wiley Blackwell, vol. 36(6), pages 890-906, June.
    47. Youngjin Yoo & Ola Henfridsson & Kalle Lyytinen, 2010. "Research Commentary ---The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research," Information Systems Research, INFORMS, vol. 21(4), pages 724-735, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lorena Espina-Romero & José Gregorio Noroño Sánchez & Gloria Rojas-Cangahuala & Jessica Palacios Garay & Doile Ríos Parra & Jose Rio Corredoira, 2023. "Digital Leadership in an Ever-Changing World: A Bibliometric Analysis of Trends and Challenges," Sustainability, MDPI, vol. 15(17), pages 1-25, August.

    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. Andrews, Daniel S. & Fainshmidt, Stav & Ambos, Tina & Haensel, Kira, 2022. "The attention-based view and the multinational corporation: Review and research agenda," Journal of World Business, Elsevier, vol. 57(2).
    2. Weiqi Dai & Mingqing Liao & Qiao Lin & Jincai Dong, 2022. "Does entrepreneurs’ proactive attention to government policies matter?," Asian Business & Management, Palgrave Macmillan, vol. 21(3), pages 396-431, July.
    3. Tomi Laamanen, 2019. "Dynamic attention-based view of corporate headquarters in MNCs," Journal of Organization Design, Springer;Organizational Design Community, vol. 8(1), pages 1-15, December.
    4. Jingyu Li & Yigang Pan & Yi Yang & Caleb H. Tse, 2022. "Digital platform attention and international sales: An attention-based view," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1817-1835, October.
    5. Kleinknecht, Robert & Haq, Hammad Ul & Muller, Alan R. & Kraan, Karolus O., 2020. "An attention-based view of short-termism: The effects of organizational structure," European Management Journal, Elsevier, vol. 38(2), pages 244-254.
    6. Matti Mäntymäki & Sami Hyrynsalmi & Antti Koskenvoima, 2020. "How Do Small and Medium-Sized Game Companies Use Analytics? An Attention-Based View of Game Analytics," Information Systems Frontiers, Springer, vol. 22(5), pages 1163-1178, October.
    7. Matti Mäntymäki & Sami Hyrynsalmi & Antti Koskenvoima, 0. "How Do Small and Medium-Sized Game Companies Use Analytics? An Attention-Based View of Game Analytics," Information Systems Frontiers, Springer, vol. 0, pages 1-16.
    8. Liu, Yang & Dong, Jiuyu & Mei, Liang & Shen, Rui, 2023. "Digital innovation and performance of manufacturing firms: An affordance perspective," Technovation, Elsevier, vol. 119(C).
    9. Luca Berchicci & Murat Tarakci, 2022. "Aspiration formation and attention rules," Strategic Management Journal, Wiley Blackwell, vol. 43(8), pages 1575-1601, August.
    10. Cheng, Cong & Wang, Limin, 2022. "How companies configure digital innovation attributes for business model innovation? A configurational view," Technovation, Elsevier, vol. 112(C).
    11. Shinkle, George A. & Hodgkinson, Gerard P. & Gary, Michael Shayne, 2021. "Government policy changes and organizational goal setting: Extensions to the behavioral theory of the firm," Journal of Business Research, Elsevier, vol. 129(C), pages 406-417.
    12. Belitski, Maksim & Korosteleva, Julia & Piscitello, Lucia, 2023. "Digital affordances and entrepreneurial dynamics: New evidence from European regions," Technovation, Elsevier, vol. 119(C).
    13. Angulo-Ruiz, Fernando & Pergelova, Albena & Dana, Leo Paul, 2020. "The internationalization of social hybrid firms," Journal of Business Research, Elsevier, vol. 113(C), pages 266-278.
    14. Datta, Subhadeep & Mukherjee, Sourjo, 2022. "In families we trust: Family firm branding and consumer’s reaction to product harm crisis," Journal of Business Research, Elsevier, vol. 151(C), pages 257-268.
    15. Ricarda B. Bouncken & Martin Ratzmann & Jeffrey G. Covin, 2023. "Fluffy cuffs: SME’s innovation in alliances with buyer firms," Small Business Economics, Springer, vol. 61(3), pages 1231-1251, October.
    16. John Joseph & Alex J. Wilson, 2018. "The growth of the firm: An attention‐based view," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1779-1800, June.
    17. Varkey K. Titus Jr. & Brian S. Anderson, 2018. "Firm Structure and Environment as Contingencies to the Corporate Venture Capital-Parent Firm Value Relationship," Entrepreneurship Theory and Practice, , vol. 42(3), pages 498-522, May.
    18. Livieratos, Antonios D. & Tsekouras, George & Vanhaverbeke, Wim & Angelakis, Antonios, 2022. "Open Innovation moves in SMEs: How European SMEs place their bets?," Technovation, Elsevier, vol. 117(C).
    19. Varshney, Mayank, 2023. "Learning-by-hiring: How do rival firms learn from focal firm's hiring," Research Policy, Elsevier, vol. 52(2).
    20. Kamal Sakhdari & J. Henri Burgers, 2018. "The moderating role of entrepreneurial management in the relationship between absorptive capacity and corporate entrepreneurship: an attention-based view," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 927-950, December.

    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:eee:techno:v:119:y:2023:i:c:s016649722200092x. 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: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/01664972 .

    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.