The Impact of Digital Transformation on the International Competitiveness of Chinese Automotive Enterprises


  •  Nan Yan    
  •  Mingyu Fu    

Abstract

Against the backdrop of profound global economic changes and the accelerated advancement of the Fourth Industrial Revolution, digital transformation has evolved from an “option” to a “necessity” for automotive enterprises. However, existing literature predominantly focuses on the direct effects of digitalization on production efficiency or domestic performance, with limited systematic investigation into the underlying mechanisms through which it enhances international competitiveness via multiple pathways. Grounded in the resource-based view and dynamic capabilities theory, this study selects Chinese A-share listed automotive manufacturing firms from 2005 to 2024 as the research object, constructs a comprehensive evaluation system for international competitiveness encompassing three dimensions—internationalization capability, operational capability, and profitability—with a total of 12 indicators, determines the indicator weights using the entropy weight method, and employs a two-way fixed effects model for empirical analysis. Special attention is paid to the new policy environment shaped by the “Data Element ×” Three-Year Action Plan (2024—2026) implemented in 2024, as well as the admission review regulations released in 2025, which, for the first time, elevate digital capabilities such as software upgrades, cybersecurity, and data security from encouraging standards to mandatory admission conditions, thereby significantly raising industry entry barriers.

The findings reveal: First, digital transformation significantly enhances the international competitiveness of automotive enterprises, a conclusion that remains robust after alternative variable measurements and sample adjustments. Second, technological innovation and marketing efficiency serve as partial mediators, uncovering the dual pathways of “technology empowerment” and “precise market connectivity” through which digital transformation indirectly boosts competitiveness. Third, heterogeneity analysis indicates that this positive effect is more pronounced in eastern regions and medium-sized enterprises, reflecting the moderating roles of digital infrastructure and organizational flexibility on transformation outcomes. This study systematically unpacks the “black box” of how digital transformation affects international competitiveness, providing theoretical foundations and practical pathways for latecomer automotive enterprises to achieve leapfrog development by leveraging their accumulated strengths in electrification and intelligence, and offers empirically grounded policy references for policymakers during the 2024—2026 critical phase of deep data element application.



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