Research on the impacts and mechanisms of digital strategy on corporate innovation investment
This paper empirically examines the impacts and underlying mechanisms of a digital strategy, along with its four constituent indicators, on enterprise innovation investment. Utilizing a vast sample of companies listed on Chinese stock markets spanning from 2007 to 2022, the study constructs measurem...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-03-01
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| Series: | Journal of Open Innovation: Technology, Market and Complexity |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S219985312500006X |
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| author | Dong Yang Huayu Shen |
| author_facet | Dong Yang Huayu Shen |
| author_sort | Dong Yang |
| collection | DOAJ |
| description | This paper empirically examines the impacts and underlying mechanisms of a digital strategy, along with its four constituent indicators, on enterprise innovation investment. Utilizing a vast sample of companies listed on Chinese stock markets spanning from 2007 to 2022, the study constructs measurement indices for enterprise digital strategies through rigorous text analysis. A multitude of analytical techniques, including panel fixed effects regression, panel mediation effects regression, panel moderation effects regression, and two-stage instrumental variable regression, are employed to investigate these impacts. The findings reveal that a digital strategy exerts a significant and positive influence on firm innovation investment. Furthermore, the mechanism through which this impact occurs is elucidated: digital strategy fosters company innovation investment by augmenting investments in R&D human capital and digital infrastructure. Heterogeneity analysis underscores that the implementation of a digital strategy has a more pronounced effect on company innovation investment under conditions of high financial constraints. Conversely, when institutional investors hold a larger proportion of shares, the impact of digital strategy implementation on company innovation investment is less pronounced. The robustness of these findings is confirmed through additional tests, such as two-stage instrumental variable regression, a panel random effects model, and substitution of the dependent variable. These results collectively offer a scientific rationale for companies to adopt digital strategies and enhance their innovation investment endeavors. |
| format | Article |
| id | doaj-art-12020fba18744580916b52711143a45a |
| institution | Kabale University |
| issn | 2199-8531 |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Open Innovation: Technology, Market and Complexity |
| spelling | doaj-art-12020fba18744580916b52711143a45a2025-01-13T04:18:45ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312025-03-01111100471Research on the impacts and mechanisms of digital strategy on corporate innovation investmentDong Yang0Huayu Shen1Innovation College, North-Chiang Mai University, 169 M.3 Nongkeaw Hangdong, Chiang Mai, Chiang Mai 50230, ThailandSchool of Economics and Management, North China Electric Power University, No. 2 Beinong Road, Huilongguan, Changping District, Beijing 102206, China; Corresponding author.This paper empirically examines the impacts and underlying mechanisms of a digital strategy, along with its four constituent indicators, on enterprise innovation investment. Utilizing a vast sample of companies listed on Chinese stock markets spanning from 2007 to 2022, the study constructs measurement indices for enterprise digital strategies through rigorous text analysis. A multitude of analytical techniques, including panel fixed effects regression, panel mediation effects regression, panel moderation effects regression, and two-stage instrumental variable regression, are employed to investigate these impacts. The findings reveal that a digital strategy exerts a significant and positive influence on firm innovation investment. Furthermore, the mechanism through which this impact occurs is elucidated: digital strategy fosters company innovation investment by augmenting investments in R&D human capital and digital infrastructure. Heterogeneity analysis underscores that the implementation of a digital strategy has a more pronounced effect on company innovation investment under conditions of high financial constraints. Conversely, when institutional investors hold a larger proportion of shares, the impact of digital strategy implementation on company innovation investment is less pronounced. The robustness of these findings is confirmed through additional tests, such as two-stage instrumental variable regression, a panel random effects model, and substitution of the dependent variable. These results collectively offer a scientific rationale for companies to adopt digital strategies and enhance their innovation investment endeavors.http://www.sciencedirect.com/science/article/pii/S219985312500006XDigital infrastructureDigital strategyDigital transformationFirm innovation investmentR&D human capital investment |
| spellingShingle | Dong Yang Huayu Shen Research on the impacts and mechanisms of digital strategy on corporate innovation investment Journal of Open Innovation: Technology, Market and Complexity Digital infrastructure Digital strategy Digital transformation Firm innovation investment R&D human capital investment |
| title | Research on the impacts and mechanisms of digital strategy on corporate innovation investment |
| title_full | Research on the impacts and mechanisms of digital strategy on corporate innovation investment |
| title_fullStr | Research on the impacts and mechanisms of digital strategy on corporate innovation investment |
| title_full_unstemmed | Research on the impacts and mechanisms of digital strategy on corporate innovation investment |
| title_short | Research on the impacts and mechanisms of digital strategy on corporate innovation investment |
| title_sort | research on the impacts and mechanisms of digital strategy on corporate innovation investment |
| topic | Digital infrastructure Digital strategy Digital transformation Firm innovation investment R&D human capital investment |
| url | http://www.sciencedirect.com/science/article/pii/S219985312500006X |
| work_keys_str_mv | AT dongyang researchontheimpactsandmechanismsofdigitalstrategyoncorporateinnovationinvestment AT huayushen researchontheimpactsandmechanismsofdigitalstrategyoncorporateinnovationinvestment |