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The impact of financial technology on corporate total factor productivity: from the perspectives of competitive strategy and corporate innovation capability

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  • Piao, Zhefan
  • Zou, Shengyang
  • You, Huihui
  • Zhao, Yingxue

Abstract

This study examines the impact of FinTech development on Chinese corporate total factor productivity (TFP) using a logical framework of " FinTech development-competitive strategy and corporate innovation-corporate TFP". Analyzing data from Chinese A-share listed companies in Shanghai and Shenzhen (2011–2021) through web crawler text analysis and employing fixed effect and mediating effect models, we find that FinTech effectively enhances TFP by promoting differentiation strategy. Despite inhibiting cost leadership due to an adaptation dilemma, FinTech still contributes positively to overall TFP. FinTech development also correlates with increased innovation, further elevating corporate TFP. Extending the analysis to consider corporate nature, geographical location, and policy implementation reveals nuanced impacts, with non-state-owned corporations and central region corporate experiencing more significant TFP benefits from FinTech. Robustness checks using GMM, instrumental variable, LLM and Hausman-Taylor estimation validate these findings.

Suggested Citation

  • Piao, Zhefan & Zou, Shengyang & You, Huihui & Zhao, Yingxue, 2025. "The impact of financial technology on corporate total factor productivity: from the perspectives of competitive strategy and corporate innovation capability," Technology in Society, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:teinso:v:83:y:2025:i:c:s0160791x25002258
    DOI: 10.1016/j.techsoc.2025.103035
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