Research on the mechanism by which digital transformation peer effects influence innovation performance in emerging industries: A case study of China's photovoltaic industry

PLoS One. 2025 Jan 3;20(1):e0313615. doi: 10.1371/journal.pone.0313615. eCollection 2025.

Abstract

The exploration of digital transformation peer effects on the innovation performance of emerging industries is crucial for analyzing the underlying mechanisms of digital transformation, optimizing resource allocation among peer enterprises, and enhancing industrial competitiveness. This study empirically examines the influence of digital transformation peer effects on the innovation performance of the photovoltaic industry, using data from 150 photovoltaic companies listed in Shanghai and Shenzhen between 2011 and 2022. The study found that: (1) The digital transformation of the photovoltaic industry is influenced by regional and industry-specific peer effects. Regional peer effects in digital transformation have a positive impact on the innovation performance of the photovoltaic industry, while industry-specific peer effects exert a negative impact on innovation performance. Moreover, these effects exhibit dynamic persistence; (2) Further analysis of the transmission mechanism reveals that the digital transformation peer effect positively influences the innovation performance of the photovoltaic industry, primarily through the mediating role of enhanced absorptive capacity. Additionally, the level of marketization and executive tenure significantly moderate this relationship; (3) The study further investigates the photovoltaic industry within the context of subsidy policy implementation, firm types, and strategic pacing. The results indicate that the digital transformation peer effect on innovation performance is most pronounced for technology-intensive firms adopting an analytical strategy after the withdrawal of photovoltaic subsidies. For labor-intensive firms employing a defensive strategy, the peer effect is more significant before the withdrawal of subsidies. In contrast, the negative impact of industry-specific digital transformation peer effects on innovation performance is more evident in photovoltaic companies that pursue an offensive strategy; (4) The heterogeneity analysis reveals that the digital transformation peer effect on innovation performance is more significant for small-scale photovoltaic enterprises with state-owned property rights. In contrast, the peer effect negatively impacts innovation performance in large-scale photovoltaic enterprises. These findings provide theoretical insights and practical guidance for governments and enterprises in formulating digital transformation strategies for emerging industries.

MeSH terms

  • China
  • Industry*
  • Inventions
  • Solar Energy

Grants and funding

This study was funded by the National Natural Science Foundation of China project, "Research on the power mechanism and governance policy of energy transition driven by socio-technical changes" (71874119). The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.