What drives digital innovation cycles? Evidence from manufacturing enterprises in China

This paper examined the determinant factors of digital innovation cycles using the data of 356 listed manufacturing enterprises in China from 2013 to 2021. The digital innovation cycles were measured using Data Envelopment Analysis (DEA). Various influencing factors, including digital technologies, organisations, users, and the environment, were analysed based on the Technology Affordance Theory (TAT). The results indicated that digital innovation efficiency in the Chinese manufacturing industry exhibited a fluctuating development trend and had considerable potential for future development. Digital innovation varied across sub-sectors, and the high-knowledge-intensive industries were subject to the greatest weaknesses. Digital innovation also changed significantly across regions in China. Furthermore, digital strategic orientation, executive education level, digital infrastructure, and regional digitalisation level negatively affected digital innovation. However, customer concentration positively affected digital innovation efficiency. Comprehensive guidance and implications for multiple perspectives are presented to enhance digital innovation by manufacturing enterprises.