Research On Service Intermediate Input,Institutional Environment And Enterprises' Performance

With the acceleration of the process of economic globalization and the deepening of the industrial technological revolution,the division of lab or in manufacturing industry is gradually refined,and the production input of manufacturing industry is constantly integrated into more and more service businesses.The global manufacturing industry presents a new trend of servitization of manufacturing.The servitization of manufacturing is closely related to the transformation and upgrading of enterprises,and has an important impact on the value-added links such as R&D,design,consulting,sales and so on.The expansion of service input business depends not only on its own internal motivation,but also on the external institutional environment.Therefore,it is necessary to construct an analytical framework of service intermediate input,institutional environment and enterprise performance,to clarify the level of the input servitization of manufacturing in China,analyze the impact of service intermediate input on enterprise performance,explore the impact of institutional environment on the relationship between service intermediate input and enterprise performance,and study the impact of institutional environment on the relationship between innovation and performance of service enterprises and its internal mechanism,and finally find a feasible way to improve the performance of enterprises by utilizing service intermediate input.In view of this,based on a thorough review of relevant literature,this paper follows the research idea of “problem concising-fact description-theoretical analysis-empirical test-policy suggestion”,and uses both model construction and empirical estimation method,based on the characteristic facts of input servitization of manufacturing and enterprises' performance in China from the perspective of global value chain,comprehensively examines the effects of service intermediate input on the performance of enterprises in terms of domestic value added,firms' price markup and export product density conversion from multiple perspectives.Besides,integrate the external institutional environment into the analytical framework,explore the impact of institutional environment on the relationship between service intermediate input and enterprises' performance,analyze the different impacts based on the domestic and foreign sources of service input,different service elements input,different regions,trade patterns,and ownership types etc,explore how to further promote the input servitization of manufacturing and improve enterprises' performance.This paper tried to answer the following questions: Under the trend of transformation from “production-oriented manufacturing” to “service-oriented manufacturing”,what is the level of input servitization of manufacturing in China? How is the performance of domestic value-added and price markup of Chinese manufacturing enterprises? What are the characteristics of export product density conversion? How does the level of input servitization of manufacturing affect the domestic value added of enterprises' exports? Is there any difference in the impact on different types of enterprises? What are the channels through which service intermediate input affects the domestic value added of enterpri ses' exports? Does the effect vary with the change of external institutional environment? Does the level of service intermediate input affect the firms' price markup and the conversion behavior of export product density? Does the impact differ in terms of domestic and foreign sources of service input,different service elements input,different regions,trade patterns and ownership types? What is the impact of innovation on total factor productivity of Chinese service enterprises? Does the institutional environment promote or inhibit this effect? In the context of different institutional environments faced by service industry enterprises,is there any difference in th is effect?In this paper,based on 2000–2014 input-output data of 56 sectors newly released by WIOD(2016),and China Industrial Enterprise Database and China Customs Import and Export Database from 2000 to 2010,we measure the input servitization degree for China's manufacturing industries and the DVAR of exports of manufacturing enterprises,systematically analyze influence channels and mechanisms of manufacturing input servitization on the DVAR of enterprises' exports,and test empirically the influence effect and working mechanisms for manufacturing input servitization on the domestic value added of enterprises' exports through the construction of econometric model.We draw the following conclusions.A significant U-shaped relationship exists between manufacturing input servitization and the DVAR of enterprises' exports,the reason is mainly as follows,there are differences in the influence of input servitization on enterprises of different trade types,the impact on the domestic value added of general trade enterprises' exports is significantly positive,while the impact on the DVAR of processing trade and mixed trade enterprises' exports is U-shaped.In the test based on enterprises' heterogeneity and service elements input heterogeneity,we find that the influence of input servitization on the DVAR of enterprises' exports differs in different trade types,regions,technologies,ownerships and service elements inputs.Based on the test of influence mechanisms,we find that cost reduction and technological innovation are the possible channels for input servitization to promote the DVAR of enterprises' exports.In addition,we include the marketization process and service industry openness degree as external institutional environments into the analysis framework.The results show that although the marketization process and service openness degree have not yet overall produced a significant influence effect on the relationship between manufacturing input servitization and the DVAR of enterprise s' exports,the manufacturing enterprises' input servitization will significantly promote the DVAR of enterprises' exports in the regions or industries with a faster marketization process and a higher service industry openness degree.The service intermediate input in manufacturing enterprises' production process will affect the pricing and cost of enterprises,which will have a significant impact on enterprises' price makeup.Therefore,based on the characteristic facts of input servitization and price markup of manufacturing industry in China from the perspective of global value chain,this paper further inves tigates how service intermediate input promotes the increase of price markup of enterprises,and how it affects different types of enterprises.The above research finds that,the input servitization of manufacturing from the perspective of global value cha in promotes the increase of enterprises' price makeup.Through identifying the sources of service input at home and abroad,it is found that the increase of domesti c service input will significantly promote the increase of enterprises' price makeup,while the impact of foreign service input on enterprises' price makeup is significantly negative.Based on the heterogeneity of service input,the test results show that transportation service input,information and communication service input,and professional science and technology service input have significant positive effects on enterprises' price makeup,while wholesale and retail service input and financial insuranc e service input have no significant effects.When distinguishing different technology levels,different regions,different types of ownership and whether enterprises export or not,it is found that the impact of input servitization on enterprises' price makeup has obvious heterogeneity.By constructing the intermediary effect model to test the impact mechanism of input servitization on enterprises' price makeup,it is found that cost reduction and technological innovation are the possible channels for input servitization of manufacturing to increase enterprises' price makeup.Exporting kinds of products is a normal situation in the field of foreign trade,the product conversion within enterprises is a way to realize the optimal allocation of resources,and has an important impact on trade structure,trade growth and tra de profits.In view of the product conversion behavior of multi-product enterprises,this paper takes the manufacturing export enterprises which are merged and matched by China Industrial Enterprise Database and China Customs Import and Export Database from 2000 to 2010 as the research sample,and calculates the factor density conversion of enterprises' export products,identifies the effect of input servitization on factor density conversion of export products,and further investigates the effect of factor density conversion of export products on the DVAR of enterprises' exports and enterprises' price makeup.Besides,this paper focuses on the institutional environment of different regions and industries in China,and explores the moderating effect of institutional environment on the relationship between the input servitization of manufacturing and the factor density conversion of enterprises' export products.The research finds that,the input servitization of manufacturing promotes the conversion of export product density,and more significantly promotes enterprises to export products with higher export factor density.There are differences in the impact of service intermediate input on the conversion of export product density,depending on the types of service elements input,the sources of service input at home and abroad,the trade types,regions and ownership types of enterprises.The conversion of factor density of export products and the increase of factor density of export products contribute to the increase of enterprises' price makeup.The change of export product density types and all kinds of changes have a significant positive impact on the DVAR of enterprises' exports.In addition,by examining the moderating effect of the external institutional environment,it finds that the degree of marketization and service openness have a positive moderating effect on the relationship between the input servitization and the increase of factor density of enterprises' export products.Finally,based on the unique institutional environment background of China's transitional economy,this paper further explores the impact of innovation on service enterprises' TFP in the process of economic transition,and the role of institutional environment factors in the relationship between the two accord ing to the questionnaire data of China's service enterprises issued by the World Bank in 2002,2003 and 2012.The research finds that innovation will lead to significant improvement of TFP,which is consistent with the “innovation-driven” development strategy proposed by China.Furthermore,considering the differences of external institutional environment of Chinese service enterprises in the co ntext of transition economy,this paper explores the impact of institutional environment on the relationship between innovation and TFP,and finds that institutional environment has a moderating effect on the promotion of TFP brought about by innovation of service enterprises.A good institutional environment strengthens the promotion of innovation to TFP of service enterprises.Among them,the degree of government intervention,abnormal payment and financing constraints have a negative moderating effect on the relationship between innovation and enterprises' TFP,while the legal environment and the degree of service industry openness have a positive moderating effect on the relationship between innovation and enterprises' TFP.In addition,the institutional environment has a threshold effect on the relationship between innovation and TFP.When the institutional environment is higher than the threshold value,innovation will significantly promote the improvement of TFP.When the institutional environment is lower than the threshold value,the promotion of innovation on TFP of service enterprises will be significantly weakened or even inhibited.