The effects of enterprises' attention to digital economy on innovation and cost control: Evidence from A-stock market of China
Open accessAbstract
China's digital economy has made amazing achievements, which brings deep impacts on enterprise innovation. Based on unbalance panel dataset covering more than two thousand manufacturing listed companies in A-stock market of China during the 2011 to 2018 period, this paper employs two-way fixed effects (TWFE) model to examine the effects of attention to digital economy on enterprise innovation. The primary explanatory variable in this research is attention degree that enterprises pay to the digital economy measured by Python technology and text analysis. Additionally, the intermediate effect model is adopted to check the underlying mechanisms of cost control in enterprises, which is also impacted by the digital economy. Several novel findings emerge. First, the number of patent applications increase as enterprises pay more attention to the digital economy. Digital economy has positive impacts on different innovation processes, not only promotes invention, but also promotes appearance design. Second, digital technology and business model as two aspects of digital economy have different effects on innovation. The attention to digital technology has positive impacts on invention patents and design patents, while business model only has a positive impact on design patents. Third, enterprises that pay attention to the digital economy are more likely to increase their R&D expenditure and decrease their sales and finance expenses, which encourages the innovation output. This paper explains these findings in the context of China and makes some specific suggestions for enterprises to promote digital transformation and innovation.
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Knowledge transfer provides companies with competitive advantage.
“Hence, knowledge transfer provides companies with competitive advantage (Qinqin et al., 2023).”
From Sustainable entrepreneurship and knowledge management: Role of green information technology in building sustainable entrepreneurial ecosystems (2025) · cites this paper as Qinqin et al., 2023
In Hypotheses development (pp. 4–5), the paper says digital technology enhances knowledge transmission and helps enterprises improve innovation capabilities and competitiveness. It does not establish that knowledge transfer itself provides companies with a competitive advantage. (LLM, conf=0.78)
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Cited by
Sorted by citations
Sadiq, M., Pham Thi, T. D., Nguyen, C. M., & Do, H.-D. (2025) · Journal of Innovation & Knowledge · doi:10.1016/j.jik.2025.100689 · Cited by 19 · see citing works
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- Authors
- Qinqin, W., Qalati, S. A., Hussain, R. Y., Irshad, H., Tajeddini, K., Siddique, F., & Gamage, T. C.
- Affiliations
- Liaocheng University (CN)
- University of Education (PK)
- University of Sargodha (PK)
- Sheffield Hallam University (GB)
- Jiangsu University (CN)
- Sabaragamuwa University of Sri Lanka (LK)
- Corresponding author
- Hussain, Rana Yassir
- ORCID
- Venue
- Journal of Innovation & Knowledge
- Publisher
- Elsevier BV
- Published
- 2023-10
- Volume
- 8
- Issue
- 4
- Pages
- 100415
- ISSN
- 2444-569X (ISSN-L)
- OpenAlex
- W4386345534
- Cited by
- 74
- References
- 84
- Citations by year
- 2026: 7 · 2025: 31 · 2024: 29 · 2023: 7
- FWCI
- 15.96
- Type
- journal article
- Language
- en
- Open access
- gold
- doi.org
- Licence
- Locations
- Journal of Innovation & Knowledge (publishedVersion, cc-by-nc-nd)
- SHURA (Sheffield Hallam University Research Archive) (Sheffield Hallam University) (acceptedVersion)
- Econstor (Econstor) (submittedVersion, cc-by-nc-nd)
- DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
- Funders
- Jiangsu University
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Economy and Transformation
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Firm Innovation and Growth
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Digital Innovation in Industries
- Keywords
- digital economy, business innovation, cost control, digital technologies, business models, patent applications, R&D investment, design patents, digital transformation, listed manufacturing companies, A-share market
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