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How Does Digital Infrastructure Affect Manufacturing SMEs Business Model Innovation? An Empirical Study in Guangdong Province

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  • Weihong Xie
  • Zhongshun Li
  • Zhong Wang
  • Diwen Zheng
  • Yongjian Wang

Abstract

Based on the resource orchestration theory (ROT), this research explores the significant role of digital infrastructure in enabling business model governance innovation (BMGI) within manufacturing small and medium-sized enterprises (SMEs). Using a sample of 237 cases from Guangdong Province, China, linear regression analysis demonstrated that digital infrastructure could significantly facilitate such innovation. Additionally, both design and use recombination acted as mediators, with design recombination yielding a substantially stronger positive impact on BMGI. This study also highlighted the contrasting impact between discrete and process manufacturing, showing that discrete manufacturing derives more substantial benefits from digital infrastructure. The findings of this research provide valuable theoretical insights into the digital transformation and value creation of SMEs in the manufacturing sector.

Suggested Citation

  • Weihong Xie & Zhongshun Li & Zhong Wang & Diwen Zheng & Yongjian Wang, 2024. "How Does Digital Infrastructure Affect Manufacturing SMEs Business Model Innovation? An Empirical Study in Guangdong Province," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 60(10), pages 2300-2312, August.
    • Handle: RePEc:mes:emfitr:v:60:y:2024:i:10:p:2300-2312
    DOI: 10.1080/1540496X.2023.2293975
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