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Industry Concentration and Digital Process Innovation: Evidence from Chinese Rail Transit Firms

Year: 2025

Type: article

Abstract: Despite existing literature highlighting the important link between industry concentration and innovation, few have centered on the connection between industry concentration and digital process innovation. This study aims to uncover this connection. Grounded on innovation diffusion theory, we explore the effects of industry concentration on digital process innovation and analyze the contingent factors of firm size and environmental support on the above effects. Through empirical analyses of data from Chinese rail transit firms, this study reveals that industry concentration inhibits digital process innovation. Firm size strengthens the negative impacts of industry concentration, while environmental support weakens the main effect. Our findings offer a complementary framework for industry organization activities and practical implications for digital process innovation.

Source: Sustainability

DOI: 10.3390/su17094116

Authors: Yi Jin, Bo Liu

Institutions: Southwest Minzu University, Southwest University of Science and Technology

Language: English

Topic: Firm Innovation and Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

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

Open Access status: gold

Estimated APC paid: $2,896