New external driving force of enterprises’ commercial innovation: Revealing the role of internet platforms

Abstract

As digital platforms continue to evolve, they facilitate the exchange of information and create opportunities for innovation-driven growth and introduce new challenges for enterprises navigating research and development-driven transformation. In the study, we used the Probit model, IV-Probit model, propensity score matching (PSM) model, KHB model to conduct research and discussion based on 2015 China Private Enterprise Survey (CEPS), and conducted a systematic investigation of the mechanisms that Internet platforms affect enterprises. Focusing on the mechanisms through which widespread digital platform adoption influences corporate commercial innovation, we first identify the pathways through which internet platforms enhance enterprises’ commercialization and innovation capabilities. Specifically, internet platforms improve the external market environment by increasing the frequency and quality of information exchange between enterprises and consumers. In addition, these platforms strengthen enterprises’ motivation and confidence, which encourages increased investment in innovation. Moreover, integrating “visible hand” (government intervention) and “invisible hand” (market forces) factors, we demonstrate that the positive effects of internet platforms on commercialization and innovation are more pronounced when government support for enterprises is intensified. Conversely, a more developed and competitive market environment magnifies firms’ propensity to accelerate innovation using digital platforms. Expanding the scope of our analysis, we introduce industry, enterprise size, type of internet platform, and geographical location dimensions to enable a more nuanced understanding of how company-specific characteristics influence the impact of digital platforms on commercial innovation. These expanded analyses significantly enhance the practical relevance and operational applicability of our findings, providing deeper insights into how firm attributes mediate the influence of digital platforms on innovation outcomes. Finally, we propose a set of strategies and frameworks for using digital platforms to facilitate the rapid recovery of enterprise operations and bolster innovation capabilities in the post-COVID-19 era.