Work

Industrial internet technology, resource reallocation and corporate risk-taking capacity: Evidence from the strategic management perspective

Year: 2024

Type: article

Abstract: By employing machine learning techniques and the Word2Vec model, we quantify the micro-level implementation of Industrial Internet technology in Chinese manufacturing firms from 2010 to 2022. This provides empirical evidence for understanding how the Industrial Internet technology enhances corporate risk-taking capability. Our study shows that adopting this technology increases risk-taking capacity, mainly through resource reallocation. The information layer empowers improvements in organizational structure , the platform layer optimizes labor resources, and the edge/software layers facilitate the integration of supply chain resources. The effect is more pronounced in firms that are technology- and labor-intensive, particularly in environments of high economic policy uncertainty . In conclusion, the Industrial Internet boosts total factor productivity by fostering increased risk-taking.

Source: China Journal of Accounting Research

DOI: 10.1016/j.cjar.2024.100387

Authors: Lili Hui, Huobao Xie

Institutions: Wuhan University of Technology, Wuhan University

Language: English

Topic: Digital Transformation in Industry

Subfield: Industrial and Manufacturing Engineering

Field: Engineering

Domain: Physical Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,800