How Digitalization Shapes Export Product Quality: Evidence from China

Abstract

Digitalization has imposed new production and trade requirements on enterprises. Quality upgrading of export products, a requirement of international consumption upgrading, is also a product of enterprise industrial upgrading. We examine the impact of the digitalization of Chinese listed firms on the quality of their export products from 2011 to 2015 using the panel fixed effects model and chain mediating effects model. The results demonstrate that digitalization has an inverted U-shaped effect on the quality of export products. Further, digitalization can promote the quality upgrading of enterprises’ export products. However, the supporting capacity of digital infrastructure and the decreasing consumption upgrading of foreign customers limit this process. Empirical results show that digitalization can alleviate the financing constraints to improve the quality of export products. Because digitalization can improve human capital quality, this effect can improve the export product quality. A chain mediation effect also occurs. Digitalization alleviates financing constraints to improve human capital and enterprises’ export product quality. By clarifying digitalization⇒, alleviating financing constraints⇒, improving human capital quality⇒ improve export product quality relationships, executives can improve the competitiveness of enterprises in the international market.

A Catalyst for China’s High-Tech Export Competitiveness: Perspective of Technological Innovation

“…With technological innovation, the competitive advantage of the product itself is significantly highlighted by substantially reducing production costs [34,35]. Technological innovation enables enterprises to autonomously analyze, develop, and process products, thus independently determining product quality and aiding in its enhancement [36][37][38]. It allows for product refinement according to diverse consumer needs, increasing market recognition and brand influence, thereby elevating brand value and opening international markets to enhance global market competitiveness [39].…”

Promoting the International Competitiveness of Small and Medium-Sized Enterprises Through Cross-Border E-Commerce Development

“…The digital economy has brought new opportunities and challenges to global economic and trade cooperation (Zhang & Duan, 2023), and SMEs must urgently enhance their international competitiveness in the digital economy era. This study uses a quasi-natural experiment in a comprehensive pilot zone of cross-border e-commerce at the city level in China to investigate the effects of cross-border e-commerce development on the internationalization and competitiveness of SMEs.…”

“…This urgently requires SMEs in developing countries to seek new sources of competitive advantage rather than traditional advantages of low resource costs, while the development of digital technology and digital trade has given SMEs new opportunities for international competitive advantage (Chen & Yang, 2017; Yang et al, 2023). Previous studies have found that e-commerce and digital trade can promote enterprises’ export competitiveness, but these studies mainly focus on large enterprises (He et al, 2011; Zhang & Duan, 2023). Limited by data availability, there is relatively little research on the relationship between cross-border e-commerce and international competitiveness.…”

Human capital and financial performance of Islamic banks: a meta-analysis

“…, 2023), customer integration (Xi et al. , 2023), export product quality (Zhang and Duan, 2023) and enhances the business competitiveness (Kongrode et al. , 2023).…”