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The Innovation Arena: A Method for Comparing Innovative Problem-Solving Across Groups
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Institutional environment, technological innovation capability and service-oriented transformation.

Xin Su1,2, Chunlan Mou1,3, Shengshi Zhou2

  • 1School of Business Administration, Shandong University of Finance and Economics, Jinan, Shandong Province, China.

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|February 7, 2023
PubMed
Summary
This summary is machine-generated.

Manufacturing firms

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Area of Science:

  • Business Strategy
  • Institutional Economics
  • Innovation Management

Background:

  • Enterprises require adaptation to external institutional environments for survival.
  • China's economic transformation presents dynamic institutional and market changes.
  • Manufacturing firms are increasingly pursuing service-oriented strategies.

Purpose of the Study:

  • To empirically examine the influence of the institutional environment on manufacturing firms' service-oriented transformation.
  • To investigate the moderating role of technological innovation capacity in this transformation.
  • To provide policy recommendations for optimizing the institutional environment for industrial upgrading.

Main Methods:

  • Empirical analysis of manufacturing enterprises in China (2016-2019).
  • Selection of firms implementing service-oriented transformation strategies.
  • Assessment of institutional factors (government governance, market regulation, legal environment) and technological innovation capacity.

Main Results:

  • Improved government governance and a legalized business environment significantly facilitate service-oriented transformation, particularly within industries.
  • Market regulation impacts intra-industry transformation short-term and cross-border transformation with a lag.
  • Technological innovation capacity enhances the institutional environment's effect on intra-industry transformation but not cross-border transformation.

Conclusions:

  • The institutional environment critically shapes service-oriented transformation in manufacturing.
  • Technological innovation capacity plays a nuanced role, strengthening intra-industry but not cross-border adaptation.
  • Policy interventions should focus on optimizing institutional factors and leveraging innovation for manufacturing's transformation and integration.