Study on the Impact and Mechanism of Industrial Internet Pilot on Digital Transformation of Manufacturing Enterprises

Abstract

In the era of digital economy, Industrial Internet is promoting the deep integration of manufacturing industry and the Internet through the new generation of information technology, which has become a new driving force to encourage the development of digital transformation of manufacturing enterprises. In this paper, we use the China Industrial Internet Pilot Demonstration Project as a proposed natural experiment to assess the impact and mechanism of action of the Industrial Internet pilot on the digital transformation of manufacturing enterprises using score propensity matching and double-difference methods based on panel data of annual reports of manufacturing listed companies from 2012 to 2020. The empirical results show that the Industrial Internet has a significant empowering effect on the digital transformation of manufacturing enterprises and positively promotes the digital transformation of manufacturing enterprises through the mechanism of digitalization, technology absorption, talent introduction, and innovation integration of industry cohort enterprises; the heterogeneity analysis shows that the empowering effect of the Industrial Internet is more substantial for technology-intensive enterprises, diversified business enterprises, and enterprises in the eastern region. This study provides empirical evidence for understanding the digital transformation of manufacturing enterprises enabled by the Industrial Internet. It provides theoretical support for promoting the development of Industrial Internet projects and achieving sustainable development of the manufacturing industry.