IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v83y2025ics0160791x25001915.html

How public digital governance system affects firms' digital technology innovation performance: Base on open innovation perspective

Author

Listed:
  • Du, Yang
  • Xu, Jun
  • Yuan, Xiao

Abstract

Public digital governance (PDG) represents the government's capacity to leverage digital technologies in public administration. From a systems perspective, PDG encompasses four core dimensions and exhibits the distinctive characteristics of holism-emergence and independence-modularity. Drawing upon the framework of open innovation, this study investigates the key mechanisms through which PDG influences the digital technology innovation performance (DTIP) of enterprises. Utilizing a dynamic panel model based on data from Chinese provincial governments and listed firms, the paper inspects a benchmark effect and examines the transmission pathways through mediating, moderating, and threshold effect models. The empirical results reveal several findings. First, within the open innovation context, the enhancement of PDG directly improves DTIP, while the presence of CTO-equivalent positions within firms contributes to heterogeneity under the impact of PDG. Second, PDG enhances DTIP through multiple parallel mediating mechanisms, including the accumulation of information capital, the reduction of technological blockade, the promotion of knowledge integration, and the acceleration of corporate digitalization. Additionally, a chain mediating mechanism is identified, wherein PDG influences regional digital homogeneity, thereby facilitating corporate digitalization, finally impacts DTIP. Third, regional innovation and entrepreneurship activity positively moderates the relationship between PDG and DTIP, whereas corporate attention to digitalization exhibits a nonlinear threshold effect. This study conceptualizes the key dimensions of PDG from a systems theory perspective, unpacks the underlying mechanisms linking PDG to DTIP and offers valuable implications for understanding the coordinated development of public digital governance and firm innovation performance.

Suggested Citation

  • Du, Yang & Xu, Jun & Yuan, Xiao, 2025. "How public digital governance system affects firms' digital technology innovation performance: Base on open innovation perspective," Technology in Society, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:teinso:v:83:y:2025:i:c:s0160791x25001915
    DOI: 10.1016/j.techsoc.2025.103001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X25001915
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2025.103001?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Hanisch, Marvin & Goldsby, Curtis M. & Fabian, Nicolai E. & Oehmichen, Jana, 2023. "Digital governance: A conceptual framework and research agenda," Journal of Business Research, Elsevier, vol. 162(C).
    2. Wang, Quan-Jing & Feng, Gen-Fu & Wang, Hai-Jie & Chang, Chun-Ping, 2021. "The impacts of democracy on innovation: Revisited evidence," Technovation, Elsevier, vol. 108(C).
    3. Gawer, Annabelle, 2014. "Bridging differing perspectives on technological platforms: Toward an integrative framework," Research Policy, Elsevier, vol. 43(7), pages 1239-1249.
    4. Kipper, Liane Mahlmann & Iepsen, Sandra & Dal Forno, Ana Julia & Frozza, Rejane & Furstenau, Leonardo & Agnes, Jéssica & Cossul, Danielli, 2021. "Scientific mapping to identify competencies required by industry 4.0," Technology in Society, Elsevier, vol. 64(C).
    5. David Tilson & Kalle Lyytinen & Carsten Sørensen, 2010. "Research Commentary ---Digital Infrastructures: The Missing IS Research Agenda," Information Systems Research, INFORMS, vol. 21(4), pages 748-759, December.
    6. Xia, Yue & Md Johar, Md Gapar, 2025. "How external factors influence organisational digital innovation: Evidence from China," Technology in Society, Elsevier, vol. 81(C).
    7. Al-Emran, Mostafa & Griffy-Brown, Charla, 2023. "The role of technology adoption in sustainable development: Overview, opportunities, challenges, and future research agendas," Technology in Society, Elsevier, vol. 73(C).
    8. Matt, C. & Hess, Thomas & Benlian, Alexander, 2015. "Digital Transformation Strategies," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 75002, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    9. Ullah, Atta & Pinglu, Chen & Ullah, Saif & Qaisar, Zahid Hussain & Qian, Ningyu, 2022. "The dynamic nexus of E-Government, and sustainable development: Moderating role of multi-dimensional regional integration index in Belt and Road partner countries," Technology in Society, Elsevier, vol. 68(C).
    10. Guandalini, Ilaria, 2022. "Sustainability through digital transformation: A systematic literature review for research guidance," Journal of Business Research, Elsevier, vol. 148(C), pages 456-471.
    11. Sangki, Jin, 2018. "Vision of future e-government via new e-government maturity model: Based on Korea's e-government practices," Telecommunications Policy, Elsevier, vol. 42(10), pages 860-871.
    12. Richard Blundell & Stephen Bond, 2000. "GMM Estimation with persistent panel data: an application to production functions," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 321-340.
    13. Glyptis, Loukas & Christofi, Michael & Vrontis, Demetris & Giudice, Manlio Del & Dimitriou, Salomi & Michael, Panayiota, 2020. "E-Government implementation challenges in small countries: The project manager's perspective," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    14. 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.
    15. Christian Matt & Thomas Hess & Alexander Benlian, 2015. "Digital Transformation Strategies," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 57(5), pages 339-343, October.
    16. Katherine A. Gunny, 2010. "The Relation Between Earnings Management Using Real Activities Manipulation and Future Performance: Evidence from Meeting Earnings Benchmarks," Contemporary Accounting Research, John Wiley & Sons, vol. 27(3), pages 855-888, September.
    17. I Georgiou, 2003. "The idea of emergent property," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(3), pages 239-247, March.
    18. Yanfeng Zheng & Qinyu (Ryan) Wang, 2020. "Shadow of the great firewall: The impact of Google blockade on innovation in China," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2234-2260, December.
    19. Aroon P. Manoharan & James Melitski & Marc Holzer, 2023. "Digital Governance: An Assessment of Performance and Best Practices," Public Organization Review, Springer, vol. 23(1), pages 265-283, March.
    20. Zhang, Kai & Cao, Bin & Guo, Ziyu & Li, Rong & Li, Lianqing, 2024. "Research on the impact of government attention on the digital economy of Chinese provinces," Innovation and Green Development, Elsevier, vol. 3(2).
    21. Boumediene Ramdani & Siddhartha Raja & Marina Kayumova, 2022. "Digital innovation in SMEs: a systematic review, synthesis and research agenda," Information Technology for Development, Taylor & Francis Journals, vol. 28(1), pages 56-80, January.
    22. Shahbaz, Muhammad & Wang, Jianda & Dong, Kangyin & Zhao, Jun, 2022. "The impact of digital economy on energy transition across the globe: The mediating role of government governance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 166(C).
    23. Yan, Ruyu & Xing, Chengju & Chen, Xiaojun & Zhao, Yupan, 2023. "Is it real or illusory? An empirical examination of the impact of open government data on innovation capability in the case of China," Technology in Society, Elsevier, vol. 75(C).
    24. Ayman Abu-Rumman & Ata Shraah & Faisal Al-Madi & Tasneem Alfalah, 2021. "Entrepreneurial networks, entrepreneurial orientation, and performance of small and medium enterprises: are dynamic capabilities the missing link?," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-16, December.
    25. Nils-Petter Augustsson & Agneta Nilsson & Jonny Holmström & Lars Mathiassen, 2019. "Managing digital infrastructures: negotiating control and drift in service provisioning," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 30(1), pages 51-78.
    26. Ademar Schmitz & David Urbano & Gertrudes Aparecida Dandolini & João Artur Souza & Maribel Guerrero, 2017. "Innovation and entrepreneurship in the academic setting: a systematic literature review," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 369-395, June.
    27. Yadav, Sanjeev & Samadhiya, Ashutosh & Kumar, Anil & Luthra, Sunil & Kumar, Vikas & Garza-Reyes, Jose Arturo & Upadhyay, Arvind, 2024. "The interplay effects of digital technologies, green integration, and green innovation on food supply chain sustainable performance: An organizational information processing theory perspective," Technology in Society, Elsevier, vol. 77(C).
    28. Jinlin Li & Litai Chen & Ying Chen & Jiawen He, 2022. "Digital economy, technological innovation, and green economic efficiency—Empirical evidence from 277 cities in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 616-629, April.
    29. Sun, Guanglin & Fang, Jiming & Li, Ting & Ai, Yongfang, 2024. "Effects of climate policy uncertainty on green innovation in Chinese enterprises," International Review of Financial Analysis, Elsevier, vol. 91(C).
    30. 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.
    31. de Reuver, Mark & Sørensen, Carsten & Basole, Rahul C., 2018. "The digital platform: a research agenda," LSE Research Online Documents on Economics 80669, London School of Economics and Political Science, LSE Library.
    32. Fernandes, Cristina & Ferreira, João J. & Veiga, Pedro Mota & Kraus, Sascha & Dabić, Marina, 2022. "Digital entrepreneurship platforms: Mapping the field and looking towards a holistic approach," Technology in Society, Elsevier, vol. 70(C).
    33. Matt, C. & Hess, Thomas & Benlian, Alexander, 2015. "Digital Transformation Strategies," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 75202, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    34. Opland, Leif Erik & Pappas, Ilias O. & Engesmo, Jostein & Jaccheri, Letizia, 2022. "Employee-driven digital innovation: A systematic review and a research agenda," Journal of Business Research, Elsevier, vol. 143(C), pages 255-271.
    35. Alberto Michele Felicetti & Vincenzo Corvello & Salvatore Ammirato, 2024. "Digital innovation in entrepreneurial firms: a systematic literature review," Review of Managerial Science, Springer, vol. 18(2), pages 315-362, February.
    36. Xun Wu & M Ramesh & Jianxing Yu, 2017. "Autonomy and Performance: Decentralization Reforms in Zhejiang Province, China," Public Administration & Development, Blackwell Publishing, vol. 37(2), pages 94-109, May.
    37. Liu, Dayong & Chen, Tong & Liu, Xiaoyang & Yu, Yongze, 2019. "Do more subsidies promote greater innovation? Evidence from the Chinese electronic manufacturing industry," Economic Modelling, Elsevier, vol. 80(C), pages 441-452.
    38. Han, Hui & Trimi, Silvana, 2022. "Towards a data science platform for improving SME collaboration through Industry 4.0 technologies," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    39. Tammi, Timo & Saastamoinen, Jani & Reijonen, Helen, 2020. "Public procurement as a vehicle of innovation – What does the inverted-U relationship between competition and innovativeness tell us?," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    40. Hao, Xiaoli & Miao, Erxiang & Sun, Qingyu & Li, Ke & Wen, Shufang & Xue, Yan, 2024. "The impact of digital government on corporate green innovation: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    41. Di Vaio, Assunta & Palladino, Rosa & Pezzi, Alberto & Kalisz, David E., 2021. "The role of digital innovation in knowledge management systems: A systematic literature review," Journal of Business Research, Elsevier, vol. 123(C), pages 220-231.
    42. Li, Jinning & Kong, Tao & Gu, Liangliang, 2024. "The impact of climate policy uncertainty on green innovation in Chinese agricultural enterprises," Finance Research Letters, Elsevier, vol. 62(PA).
    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. Teubner, Alexander & Stockhinger, Jan, 2020. "IT/IS strategy research and digitalization: An extensive literature review," ERCIS Working Papers 34, University of Münster, European Research Center for Information Systems (ERCIS).
    2. Zahid Sarwar & Jingmei Gao & Adnan Khan, 2024. "Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: a dynamic capability perspective," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 867-901, June.
    3. Sebastian Kussl & Andreas Wald, 2022. "Smart Mobility and its Implications for Road Infrastructure Provision: A Systematic Literature Review," Sustainability, MDPI, vol. 15(1), pages 1-20, December.
    4. Burström, Thommie & Parida, Vinit & Lahti, Tom & Wincent, Joakim, 2021. "AI-enabled business-model innovation and transformation in industrial ecosystems: A framework, model and outline for further research," Journal of Business Research, Elsevier, vol. 127(C), pages 85-95.
    5. Uršič, Dejan & Čater, Tomaž, 2025. "Digital innovation in management and business: A comprehensive review, multi-level framework, and future research agenda," Journal of Business Research, Elsevier, vol. 197(C).
    6. Florian Wiesböck & Thomas Hess, 2020. "Digital innovations," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 75-86, March.
    7. Zahra, Shaker A. & Liu, Wan & Si, Steven, 2023. "How digital technology promotes entrepreneurship in ecosystems," Technovation, Elsevier, vol. 119(C).
    8. Santos, Susana C. & Liguori, Eric W. & Garvey, Erin, 2023. "How digitalization reinvented entrepreneurial resilience during COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    9. Fan, Yongzhen, 2025. "The innovation effect of digital business model transformation orientation: Evidence from corporate cross-boundary innovation," International Review of Economics & Finance, Elsevier, vol. 103(C).
    10. Ma, Dechao & Wu, Weiwei, 2024. "Does artificial intelligence drive technology convergence? Evidence from Chinese manufacturing companies," Technology in Society, Elsevier, vol. 79(C).
    11. Lei Shen & Xi Zhang & Hongda Liu, 2022. "Digital technology adoption, digital dynamic capability, and digital transformation performance of textile industry: Moderating role of digital innovation orientation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2038-2054, September.
    12. Wei Sun & Shuang Ren & Guiyao Tang, 2025. "In the era of responsible artificial intelligence and digitalization: business group digitalization, operations and subsidiary performance," Annals of Operations Research, Springer, vol. 354(1), pages 223-245, November.
    13. Montero Guerra, José Manuel & Danvila-del-Valle, Ignacio & Méndez Suárez, Mariano, 2023. "The impact of digital transformation on talent management," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    14. Saarikko, Ted & Westergren, Ulrika H. & Blomquist, Tomas, 2020. "Digital transformation: Five recommendations for the digitally conscious firm," Business Horizons, Elsevier, vol. 63(6), pages 825-839.
    15. Andreas Hein & Maximilian Schreieck & Tobias Riasanow & David Soto Setzke & Manuel Wiesche & Markus Böhm & Helmut Krcmar, 2020. "Digital platform ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 87-98, March.
    16. Jan Jöhnk & Philipp Ollig & Patrick Rövekamp & Severin Oesterle, 2022. "Managing the complexity of digital transformation—How multiple concurrent initiatives foster hybrid ambidexterity," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 547-569, June.
    17. Drasch, Benedict J. & Schweizer, André & Urbach, Nils, 2018. "Integrating the ‘Troublemakers’: A taxonomy for cooperation between banks and fintechs," Journal of Economics and Business, Elsevier, vol. 100(C), pages 26-42.
    18. Brieger, Steven A. & Chowdhury, Farzana & Hechavarría, Diana M. & Muralidharan, Etayankara & Pathak, Saurav & Lam, Yan Tong, 2022. "Digitalization, institutions and new venture internationalization," Journal of International Management, Elsevier, vol. 28(4).
    19. Gong, Cheng & Ribiere, Vincent, 2021. "Developing a unified definition of digital transformation," Technovation, Elsevier, vol. 102(C).
    20. Blanka, Christine & Krumay, Barbara & Rueckel, David, 2022. "The interplay of digital transformation and employee competency: A design science approach," Technological Forecasting and Social Change, Elsevier, vol. 178(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    Statistics

    Access and download statistics

    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:teinso:v:83:y:2025:i:c:s0160791x25001915. 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: https://www.journals.elsevier.com/technology-in-society .

    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.