Share:


Mechanism of innovation and standardization driving company competitiveness in the digital economy

    Jing Yang Affiliation
    ; Lijun Zhou Affiliation
    ; Yuyang Qu Affiliation
    ; Xiang Jin Affiliation
    ; Shishi Fang Affiliation

Abstract

Data have changed the characteristics of the global value chain in the context of digital economy. Standards and innovation are the key facilitators of digital economy. Considering the collaborative development of innovation and standardization, this paper constructs a theoretical model of the impact of innovation and standardization levels on company competitiveness. Furthermore, the moderating effect of the coupling coordination of innovation and standardization was analyzed for both factors. In total, 171 listed companies in the field of digital economy were selected as the research. The results indicated that a company’s level of innovation and standardization influences company competitiveness. Moreover, the relationship between innovation and standardization was found to be a coordinating development relationship and not a conventional promotion or hindrance. This article also proposed some pertinent suggestions for companies involved in the global value chain competition.

Keyword : technological innovation, standardization, coupling coordination, digital economy, competitiveness, listed company

How to Cite
Yang, J., Zhou, L., Qu, Y., Jin, X., & Fang, S. (2023). Mechanism of innovation and standardization driving company competitiveness in the digital economy. Journal of Business Economics and Management, 24(1), 54–73. https://doi.org/10.3846/jbem.2023.17192
Published in Issue
Feb 9, 2023
Abstract Views
900
PDF Downloads
759
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Abendin, S., & Duan, P. (2021). International trade and economic growth in Africa: The role of the digital economy. Cogent Economics & Finance, 9(1), 1911767. https://doi.org/10.1080/23322039.2021.1911767

Akis, E. (2015). Innovation and competitive power. Procedia-Social and Behavioral Sciences, 195, 1311–1320. https://doi.org/10.1016/j.sbspro.2015.06.304

Amuso, V., Poletti, G., & Montibello, D. (2020). The digital economy: Opportunities and challenges. Global Policy, 11(1), 124–127. https://doi.org/10.1111/1758-5899.12745

Arnold, N., & Hasse, R. (2015). Escalation of governance: Effects of voluntary standardization on organizations, markets and standards in Swiss fair trade. Sociological Research Online, 20(3), 94–109. https://doi.org/10.5153/sro.3734

Baron, J., & Spulber, D. F. (2018). Technology standards and standard setting organizations: Introduction to the Searle Center database. Journal of Economics & Management Strategy, 27(3), 462–503. https://doi.org/10.1111/jems.12257

Blind, K. (2002). Driving forces for standardization at standardization development organizations. Applied Economics, 34(16), 1985–1998. https://doi.org/10.1080/00036840110111158

Blind, K. (2004). The economics of standards: Theory, evidence, policy. Edward Elgar Publishing.

Blind, K., & Gauch, S. (2009). Research and standardisation in nanotechnology: Evidence from Germany. The Journal of Technology Transfer, 34(3), 320–342. https://doi.org/10.1007/s10961-008-9089-8

Blind, K., & Rauber, J. (2016). Drivers for companies’ entry into standardization. https://wwws.law.northwestern.edu/research-faculty/clbe/events/innovation/documents/blind_rauber_entry_searle2016_final.pdf

Bourlès, R., Cette, G., Lopez, J., Mairesse, J., & Nicoletti, G. (2013). Do product market regulations in upstream sectors curb productivity growth? Panel data evidence for OECD countries. The Review of Economics and Statistics, 95(5), 1750–1768. https://doi.org/10.1162/REST_a_00338

Brunsson, N., Rasche, A., & Seidl, D. (2012). The dynamics of standardization: Three perspectives on standards in organization studies. Organization Studies, 33(5–6), 613–632. https://doi.org/10.1177/0170840612450120

Bukht, R., & Heeks, R. (2017). Defining, conceptualising and measuring the digital economy (Development Informatics Working Paper No. 68). https://doi.org/10.2139/ssrn.3431732

Castellacci, F., & Natera, J. M. (2013). The dynamics of national innovation systems: A panel cointegration analysis of the coevolution between innovative capability and absorptive capacity. Research Policy, 42(3), 579–594. https://doi.org/10.1016/j.respol.2012.10.006

Chen, C. (2006). CiteSpace II: Detecting and visualizing emerging trends and transient patterns in scientific literature. Journal of the American Society for Information Science and Technology, 57(3), 359–377. https://doi.org/10.1002/asi.20317

Chen, Y. (2020). Improving market performance in the digital economy. China Economic Review, 62, 101482. https://doi.org/10.1016/j.chieco.2020.101482

China Academy of Information and Communications Technology. (2020). A new vision of the Global Digital Economy (2020) – New driver of sustainable development under great changes. CAICT.

Choi, D. G., Lee, H., & Sung, T. (2011). Research profiling for “standardization and innovation”. Scientometrics, 88(1), 259–278. https://doi.org/10.1007/s11192-011-0344-7

Chursin, A., Vlasov, Y., & Makarov, Y. (2016). Innovation as a basis for competitiveness. Theory and practice. Springer Cham. https://doi.org/10.1007/978-3-319-40600-8

David, P. A. (1985). Clio and the economics of QWERTY. The American Economic Review, 75(2), 332–337.

de Vries, H. J., & Verhagen, W. P. (2016). Impact of changes in regulatory performance standards on innovation: A case of energy performance standards for newly-built houses. Technovation, 48–49, 56–68. https://doi.org/10.1016/j.technovation.2016.01.008

Deng, Z. (2020). Analysis of the advantages and disadvantages of China digital economy development based on the industrial division of labor. Economic Review Journal, 4, 67–76.

Doğan, E. (2016). The effect of innovation on competitiveness. Istanbul University Econometrics and Statistics e-Journal, 24, 60–81. https://dergipark.org.tr/en/download/article-file/268727

Dziallas, M., & Blind, K. (2019). Innovation indicators throughout the innovation process: An extensive literature analysis. Technovation, 80–81, 3–29. https://doi.org/10.1016/j.technovation.2018.05.005

Fernandez, E., Montes, J. M., & Vázquez, C. J. (2000). Typology and strategic analysis of intangible resources: A resource-based approach. Technovation, 20(2), 81–92. https://doi.org/10.1016/S0166-4972(99)00115-7

Furman, J. L., & Hayes, R. (2004). Catching up or standing still?: National innovative productivity among “follower” countries, 1978–1999. Research Policy, 33(9), 1329–1354. https://doi.org/10.1016/j.respol.2004.09.006

Gawer, A., & Cusumano, M. A. (2014). Industry platforms and ecosystem innovation: Platforms and innovation. Journal of Product Innovation Management, 31(3), 417–433. https://doi.org/10.1111/jpim.12105

Goluchowicz, K., & Blind, K. (2011). Identification of future fields of standardisation: An explorative application of the Delphi methodology. Technological Forecasting and Social Change, 78(9), 1526–1541. https://doi.org/10.1016/j.techfore.2011.04.014

Hanna, N. K. (2016). Mastering digital transformation: Towards a smarter society, economy, city and nation. Emerald Group Publishing. https://doi.org/10.1108/978-1-78560-465-220151009

Hanseth, O., Monteiro, E., & Hatling, M. (1996). Developing information infrastructure: The tension between standardization and flexibility. Science, Technology, & Human Values, 21(4), 407–426. https://doi.org/10.1177/016224399602100402

Hashi, I., & Stojčić, N. (2013). The impact of innovation activities on firm performance using a multi-stage model: Evidence from the Community Innovation Survey 4. Research Policy, 42(2), 353–366. https://doi.org/10.1016/j.respol.2012.09.011

Hussain, A., & Khan, S. (2013). International marketing strategy: Standardization versus adaptation. Management and Administrative Sciences Review, 2(4), 353–359.

Jiang, H., Zhao, S., Li, Z., & Chen, Y. (2016). Interaction between technology standardization and technology development: A coupling effect study. Information Technology and Management, 17(3), 229–243. https://doi.org/10.1007/s10799-015-0215-7

Jiao, S., & Sun, Q. (2021). Digital economic development and its impact on econimic growth in China: Research based on the prespective of sustainability. Sustainability, 13(18), 10245. https://doi.org/10.3390/su131810245

Kartiwi, M., & MacGregor, R. C. (2007). Electronic commerce adoption barriers in Small to Medium-Sized Enterprises (SMEs) in developed and developing countries: A cross-country comparison. Journal of Electronic Commerce in Organizations, 5(3), 35–51. https://doi.org/10.4018/jeco.2007070103

Katz, J. A., & Safranski, S. (2003). Standardization in the midst of innovation: Structural implications of the Internet for SMEs. Futures, 35(4), 323–340. https://doi.org/10.1016/S0016-3287(02)00084-8

Lavie, D. (2006). The competitive advantage of interconnected firms: An extension of the resource-based view. Academy of Management Review, 31(3), 638–658. https://doi.org/10.5465/amr.2006.21318922

Lee, H., & Oh, S. (2006). A standards war waged by a developing country: Understanding international standard setting from the actor-network perspective. The Journal of Strategic Information Systems, 15(3), 177–195. https://doi.org/10.1016/j.jsis.2005.10.002

Li, E., & Cui, Z. (2018). Coupling coordination between China’s regional innovation capability and economic development. Scientia Geographica Sinica, 38(09), 1412–1421. https://doi.org/10.13249/j.cnki.sgs.2018.09.003

Miotti, H. (2009). The economic impact of standardization. Technological change, standards growth in France. https://normalisation.afnor.org/wp-content/uploads/2016/06/Etude-ImpactEcoNorm-GB2009.pdf

Narayanan, V. K., & Chen, T. (2012). Research on technology standards: Accomplishment and challenges. Research Policy, 41(8), 1375–1406. https://doi.org/10.1016/j.respol.2012.02.006

Oostrom, L., Walker, A. N., Staats, B., Slootbeek-Van Laar, M., Ortega Azurduy, S., & Rooijakkers, B. (2016). Measuring the internet economy in the Netherlands: A big data analysis. CBS. Statistics Netherlands.

Porter, M. E. (1998). Clusters and the new economics of competition. In Harvard Business Review (pp. 77–90). https://hbr.org/1998/11/clusters-and-the-new-economics-of-competition

Riillo, C. A. (2013). Profiles and motivations of standardization players. International Journal of IT Standards and Standardization Research (IJITSR), 11(2), 17–33. https://doi.org/10.4018/jitsr.2013070102

Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5, Part 2), S71–S102. https://doi.org/10.1086/261725

Sanders, T. R. B. (1972). The aims and principles of standardization. International Organization for Standardization.

Shin, D.-H., Kim, H., & Hwang, J. (2015). Standardization revisited: A critical literature review on standards and innovation. Computer Standards & Interfaces, 38, 152–157. https://doi.org/10.1016/j.csi.2014.09.002

Solow, R. M. (1957). Technical change and the aggregate production function. The Review of Economics and Statistics, 39(3), 312–320. https://doi.org/10.2307/1926047

Sturgeon, T. J. (2019). Upgrading strategies for the digital economy. Global Strategy Journal, 1364. https://doi.org/10.1002/gsj.1364

Sturgeon, T., Van Biesebroeck, J., & Gereffi, G. (2008). Value chains, networks and clusters: Reframing the global automotive industry. Journal of Economic Geography, 8(3), 297–321. https://doi.org/10.1093/jeg/lbn007

Swann, G. M. P. (2010). The economics of standardization: An update. Innovative Economics Limited.

Szeles, M. R., & Simionescu, M. (2020). Regional patterns and drivers of the EU digital economy. Social Indicators Research, 150(1), 95–119. https://doi.org/10.1007/s11205-020-02287-x

Tassey, G. (2000). Standardization in technology-based markets. Research Policy, 29(4), 587–602. https://doi.org/10.1016/S0048-7333(99)00091-8

Teece, D. J. (1986). Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Research Policy, 15(6), 285–305. https://doi.org/10.1016/0048-7333(86)90027-2

Teece, D. J. (2017). Towards a capability theory of (innovating) firms: Implications for management and policy. Cambridge Journal of Economics, 41(3), 693–720. https://doi.org/10.1093/cje/bew063

United Nations Conference on Trade and Development. (2019). Digital economy report 2019. Value creation and capture: Implications for developing countries. UNCTAD. United Nations publication.

Wen, J., & Zeng, D. (2019). Alliance portfolio configuration and firm’s technology standardization capability. Studies in Science of Science, 37(07), 1277–1285. https://doi.org/10.16192/j.cnki.1003-2053.2019.07.014

Yang, J., Jin, X., Le, W., & Sheng, F. (2021). Exploring service quality model from the perspective of sensory perception. Total Quality Management and Business Excellence, 32(13–14), 1548–1568. https://doi.org/10.1080/14783363.2020.1747425

Yang, J., Shao, L., Jin, X., & Zhou, L. (2022). Impact of coupling of technological innovation and standardisation on industrial development: An empirical study of high-tech industry. International Journal of Emerging Markets. https://doi.org/10.1108/IJOEM-05-2021-0758

Yang, J., Vargas, L. G., Jin, X., & Zhou, L. (2020). Quality credit evaluation in the internet company: A system based on the analytic hierarchy process. Journal of Business Economics and Management, 21(2), 344–372. https://doi.org/10.3846/jbem.2020.11409

Yu, X. (2008). Standardization and economic growth – Theory, demonstration and case. China Standards Press.

Zoo, H., de Vries, H. J., & Lee, H. (2017). Interplay of innovation and standardization: Exploring the relevance in developing countries. Technological Forecasting and Social Change, 118, 334–348. https://doi.org/10.1016/j.techfore.2017.02.033

Zou, S., Zou, Z., & Zeng, D. (2020). Impact of competition-complementarity of collaborative R&D network on enterprise’s technology standardization capability. Studies in Science of Science, 38(1), 97–104.