Can market competition enhance the utilization of data elements? Analysis from the dual perspectives of managerial incentives and entrepreneurial orientation

Ji Liu, Zheng Xu, Jing Zhang and Kun Zhou

International Review of Financial Analysis, 2025, vol. 103, issue C

Abstract: This study theoretically confirms the promoting effect of market competition mechanisms on the utilization level of enterprise data elements and offers important policy insights into improving fair market competition systems to foster high-quality and transformative enterprise development. This study investigates A-share non-financial listed companies from 2010 to 2018, using the introduction of the negative list system for market access serving as the natural policy intervention. Furthermore, this study examines how market competition influences enterprises' ability to leverage data elements and uncovers the mechanisms involved using a quasi-natural experimental design. Findings reveal that increased competition promotes more effective data utilization, primarily by optimizing managerial incentives and instilling a stronger entrepreneurial spirit within firms. Further investigation reveals that this positive effect is more significant among non-state-owned enterprises in the eastern and central regions, while no substantial impact is observed in state-owned enterprises or firms in the western regions. This study offers theoretical insights into the role of competitive environments in optimizing data utilization and practical recommendations for improving market competition systems to support high-quality enterprise development.

Keywords: Market competition; Enterprise data element utilization; Incentive effectiveness; Entrepreneurial orientation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:103:y:2025:i:c:s1057521925003278

DOI: 10.1016/j.irfa.2025.104240

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