Technological Innovation, Product Quality and Upgrading of Manufacturing Value Chain: Empirical Evidence from China

Xiaolong Gao, Changfei Li, Ehsan Elahi (), Mohammad Ilyas Abro and Zhaocai Cui
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Xiaolong Gao: School of Economics, Shandong University of Technology, Zibo 255000, China
Changfei Li: College of Humanities and Management, Shandong Xiandai University, Jinan 250100, China
Ehsan Elahi: School of Economics, Shandong University of Technology, Zibo 255000, China
Mohammad Ilyas Abro: Department of Basic Sciences and Humanities, Dawood University of Engineering and Technology, Karachi 74800, Pakistan
Zhaocai Cui: School of Economics, Shandong University of Technology, Zibo 255000, China

Sustainability, 2023, vol. 15, issue 9, 1-19

Abstract: The aim of this research is to investigate the relationship between enterprise technological innovation, export product quality, and the upgrading of the manufacturing value chain. The study is based on panel data from Chinese manufacturing enterprises between 2000 and 2013 and uses a multi-dimensional fixed-effect method to analyze the moderating effect of enterprise export product quality on the relationship between technological innovation and the upgrading of the manufacturing value chain. The results show that technological innovation significantly promotes the upgrading of the manufacturing value chain. The regression analysis indicates that a 1% increase in enterprise technological innovation leads to a 0.28% increase in the upgrading of the manufacturing value chain. Similarly, the study demonstrates that improving the quality of exported products significantly enhances the manufacturing industry’s status in the global value chain. The regression analysis reveals that a 1% increase in the quality of exported products leads to a 0.14% increase in the upgrading of the manufacturing value chain. Moreover, the research identifies a threshold value of 0.4438 for the moderating effect of enterprise export product quality on the impact of technological innovation on the upgrading of the manufacturing value chain. When the quality of exported products is below the threshold value, it has a strong positive regulatory effect on technological innovation, promoting the upgrading of the manufacturing value chain. However, once the quality of exported products exceeds the threshold value, its regulatory effect becomes insignificant. The study’s findings have important implications for enterprises looking to overcome the “dilemma of scientific and technological innovation” and promote the intelligent development of the manufacturing industry. The research conclusions have strong reference value for promoting the combination of technology innovation and business model innovation in manufacturing enterprises. This will allow for climbing the high-end links of the global value chain and achieving sustainable development.

Keywords: technological innovation; product quality; value chain; threshold effect; China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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