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

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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.

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Funding

This work was supported by the National Natural Science Foundation of China (Grant Nos. 72063018 and 72163015).

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Authors and Affiliations

  1. Institute of Agricultural Economics and Information, Jiangxi Academy of Agricultural Sciences, Nanchang, 330200, Jiangxi, China

    Zexin Chi, Fu Jiang & Changsong Wang

  2. School of Humanity and Law, Nanchang Hangkong University, Nanchang, 330063, Jiangxi, China

    Lu Yan

  3. School of Management, Zhejiang University of Technology, Hangzhou, 310000, Zhejiang, China

    Xihui Chen

  4. Innovation and Development Research Center, Hangzhou United Rural Commercial Bank, Hangzhou, 310000, Zhejiang, China

    Xihui Chen

  5. Karelian Institute, University of Eastern Finland, 80100, Joensuu, Finland

    Luca Esposito

  6. Department of Economics and Statistics, University of Salerno, 84100, Salerno, Italy

    Luca Esposito

Authors
  1. Zexin Chi
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  2. Fu Jiang
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  3. Lu Yan
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  4. Changsong Wang
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Correspondence to Xihui Chen.

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Chi, Z., Jiang, F., Yan, L. et al. Nexus between enterprise innovation and viability: strategic differentiation of China manufacturing sector unveils the truth. Environ Dev Sustain (2023). https://doi.org/10.1007/s10668-023-04220-x

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