Heterogeneous effects of internet channel on firm innovation

ABSTRACT

This paper examines the effects of Internet channel on the commercialization of firm innovation, which is measured by new product sales (NPS). We estimate our empirical model with the GMM-threshold approach and find that there is a positive effect of internet channel on NPS if the adopting firm has an experienced CEO. Further, a more experienced CEO is required for producing such positive effect for firms with a larger sales volume.

KEYWORDS:

• E-Commerce
• online channel
• innovation
• threshold model

JEL CLASSIFICATION:

• L11
• L25
• L81
• O31

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

¹ See Figure A1 in the appendix to see the diagnostics for threshold effects.

² To address the issue of limited dependent variable of NPS, we perform a robustness check with an IV-Tobit estimation for each sub-sample defined in Table 2. Most of the coefficients are robust to the alternative estimation method qualitatively, but with larger magnitudes in absolute term. See Table A1 in the appendix for the empirical results.

Additional information

Funding

This work was supported by the National Natural Science Foundation of China [grant numbers 71973096].