Does internet convergence improve manufacturing enterprises’ competitive advantage? Empirical research based on the mediation effect model

Maomao Pan, Min Bai and Xiaoxiao Ren

Technology in Society, 2022, vol. 69, issue C

Abstract: Internet convergence is an important strategic measure to accelerate the transition of the Chinese economy as well as the transformation and upgrade of the manufacturing industry and to achieve high-quality development. This study draws upon the theory of competitive advantage to investigate the influence of Internet convergence at different stages on manufacturing enterprises' competitive advantage. Using unique hand-collected patent data from Chinese manufacturing listed firms between 2005 and 2018, we found that technology convergence and market convergence enhance manufacturing enterprises' competitive advantage, while business convergence weakens the competitive advantage. In addition, the mechanism tests indicated that technology convergence, business convergence, and market convergence all contribute to the formation of product differentiation advantages that are difficult to imitate and enhance manufacturing enterprises' competitive advantages through product differentiation. Conversely, business convergence and market convergence harm cost control, and thus, reduce enterprises’ competitive advantage. The findings imply that emerging markets need to enhance their Internet convergence strategy.

Keywords: Internet convergence; Competitive advantage; Convergence stage; Product differentiation; Cost control (search for similar items in EconPapers)
JEL-codes: D24 L60 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:teinso:v:69:y:2022:i:c:s0160791x22000859

DOI: 10.1016/j.techsoc.2022.101944

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