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Nexus between enterprise innovation and viability: strategic differentiation of China manufacturing sector unveils the truth

Author

Listed:
  • Zexin Chi

    (Jiangxi Academy of Agricultural Sciences)

  • Fu Jiang

    (Jiangxi Academy of Agricultural Sciences)

  • Lu Yan

    (Nanchang Hangkong University)

  • Changsong Wang

    (Jiangxi Academy of Agricultural Sciences)

  • Xihui Chen

    (Zhejiang University of Technology
    Hangzhou United Rural Commercial Bank)

  • Luca Esposito

    (University of Eastern Finland
    University of Salerno)

Abstract

Viability is the key to driving enterprises towards high-quality development. This paper takes listed companies in China’s manufacturing industry as the object of study during 2007–2021, empirically analyses the impact of enterprise innovation on viability and the moderating impacts of strategic differentiation on the relationship between enterprise innovation and viability from the point of view of innovation inputs and innovation outputs, and extends the analysis of the threshold effect of strategic differentiation on the impact of enterprise innovation and viability. The findings show that the level of viability varies across firms, that firm innovation is conducive to enhancing the level of viability, and that there is a moderating effect of strategic differentiation and vital innovation on viability. The result still holds in the robustness tests with replacing core variables, changing samples, and instrumental variables, while it has heterogeneous effects across different equity properties, spatial geographic locations, and high technology dependence. Further analysis reveals a threshold effect of strategic differentiation on the relationship between enterprise innovation and viability. The outcome demonstrates that choosing a strategy aligned with industry conventions and strengthening enterprise innovation is conducive to enhancing enterprises’ viability to foster the manufacturing industry’s high-quality growth.

Suggested Citation

  • Zexin Chi & Fu Jiang & Lu Yan & Changsong Wang & Xihui Chen & Luca Esposito, 2025. "Nexus between enterprise innovation and viability: strategic differentiation of China manufacturing sector unveils the truth," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(3), pages 7757-7778, March.
    • Handle: RePEc:spr:endesu:v:27:y:2025:i:3:d:10.1007_s10668-023-04220-x
    DOI: 10.1007/s10668-023-04220-x
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