Research on risk identification of manufacturing enterprises’ Internet strategic transformation

Abstract

The Communist Party of China’s 19th National Congress underlined the necessity of speeding the development of a manufacturing powerhouse and advanced manufacturing sector by supporting the deep integration of the Internet, big data, artificial intelligence, and the real economy. This study employed principal component analysis to extract the prominent risk factors from questionnaire data in order to manage the risks connected with the Internet strategic transformation of manufacturing firms. To confirm the major risk factors, a structural equation modeling was created using Amos-24 software. The findings revealed that risk factors of Internet strategic transformation in manufacturing businesses are mostly expressed in equipment flexibility risks, organizational versatility risks, smart technology risks, Internet technology risks, flexible management risks, and financing management risks. The paper offers useful theoretical and practical insights into the risks of China’s manufacturing businesses’ Internet strategic transformation. The findings can assist manufacturing firms in better identifying and managing these risks, supporting their smooth transition to the Internet economy.