Hostname: page-component-cd9895bd7-p9bg8 Total loading time: 0 Render date: 2024-12-26T18:03:52.039Z Has data issue: false hasContentIssue false

The Driving Forces Behind the Phenomenal Rise of the Digital Economy in China

Published online by Cambridge University Press:  05 September 2022

Chong Ma
Affiliation:
Renmin University of China, China
Ji-Ye Mao*
Affiliation:
Renmin University of China, China
Xiao-Peng An
Affiliation:
Ali Research Institute, China
*
Corresponding author: Ji-Ye Mao (maojiye@rmbs.ruc.edu.cn)

Abstract

This research commentary responds to Jiang and Murmann (2022), by offering further explanations for the miraculous growth of the digital economy in China from both the demand and supply perspectives. To complement their views, we identify several additional important factors, and classify them in three categories in an explanatory model. We believe that factors on the demand side played a primary role, along with innovative and entrepreneurial e-commerce service providers on the supply side. Infrastructures and government policies provided the foundation and a facilitating environment. We conclude that digital transformation of traditional industries will become the next wave of digital economy, stronger than the previous wave of e-commerce. Implications for research and practices are also discussed. In addition, we highlight emerging trends and turbulences. In conclusion, despite short-term turbulences, we expect that the digital economy in China will make big-stride progress in the long term, with strong potential to continue its growth.

Type
Dialogue, Debate, and Discussion
Copyright
Copyright © The Author(s), 2022. Published by Cambridge University Press on behalf of The International Association for Chinese Management Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

ACCEPTED BY Deputy Editor Johann Peter Murmann

References

REFERENCES

Accenture. 2019. China digital transformation index (2019). [Cited 3 April 2022]. Available from URL: https://www.accenture.cn/_acnmedia/PDF-108/Accenture-China-Digital-Transformation-Index-2019.pdf#zoom=50Google Scholar
Accenture. 2021. China digital transformation index (2021). [Cited 3 April 2022]. Available from URL: https://www.accenture.com/_acnmedia/PDF-163/Accenture-2021-Accenture-China-Enterprise-Digital-Transformation-Index.pdf#zoom=50Google Scholar
Bain & Company. 2021. Platform development model with Chinese characteristics of China's digital economy [Internet]. [Cited 23 May 2022]. Available from URL: https://www.bain.cn/pdfs/202103300524126586.pdfGoogle Scholar
The Boston Consulting Group. 2017. Interpretation of Chinese Internet characteristics. [Cited 23 May 2022]. Available from URL: https://web-assets.bcg.com/imgsrc/BCG_China%20Internet%20Report_Sep%202017_CHN_tcm9-170392.pdfGoogle Scholar
China Internet Network Information Center. 2022. The 49th China Statistical Report on Internet Development. [Cited 23 May 2022]. Available from URL: http://www.cnnic.net.cn/hlwfzyj/hlwxzbg/hlwtjbg/202202/P020220407403488048001.pdfGoogle Scholar
Gaokao. 2022a. The scale of college graduates in China (Computer Science and Technology). [Cited 23 May 2022]. Available from URL: https://gaokao.chsi.com.cn/zyk/zybk/detail/73384336Google Scholar
Gaokao. 2022b. The scale of college graduates in China (Software Engineering). [Cited 23 May 2022]. Available from URL: https://gaokao.chsi.com.cn/zyk/zybk/detail/73384356Google Scholar
Hofstede, G. 1984. Culture's consequences: International differences in work-related values, vol. 5. Beverly Hills: Sage.Google Scholar
Jfa-fc. 2022. Convenience store monthly statistical survey report (2021). [Cited 3 April 2022]. Available from URL: https://www.jfa-fc.or.jp/particle/70.htmlGoogle Scholar
Jiang, H., & Murmann, J. P. 2022. The rise of China's digital economy: An overview. Management and Organization Review, 18(4): 790802.CrossRefGoogle Scholar
MEPRC. 2021. National statistical bulletin on the development of education (2020). [Cited 3 April 2022]. Available from URL: http://www.moe.gov.cn/jyb_sjzl/sjzl_fztjgb/202108/t20210827_555004.htmlGoogle Scholar
Ministry of Commerce, the People's Republic of China. 2021. E-commerce in China (2020). [Cited 3 April 2022]. Available from URL: http://dzsws.mofcom.gov.cn/article/ztxx/ndbg/202109/20210903199156.shtml, http://www.moe.gov.cn/jyb_sjzl/sjzl_fztjgb/202108/t20210827_555004.htmlGoogle Scholar
Ministry of Industry and Information Technology, the People's Republic of China. 2022. Communication industry statistical bulletin (2021). [Cited 3 April 2022]. Available from URL: https://www.miit.gov.cn/gxsj/tjfx/txy/art/2022/art_e8b64ba8f29d4ce18a1003c4f4d88234Google Scholar
Ministry of Transport, the People's Republic of China. 2003. Statistical bulletin on the development of highway and waterway transportation industry (2003). [Cited 3 April 2022]. Available from URL: https://www.mot.gov.cn/fenxigongbao/hangyegongbao/201510/t20151013_1894748.htmlGoogle Scholar
Ministry of Transport, the People's Republic of China. 2021. Statistical bulletin on the development of transportation industry (2020). [Cited 3 April 2022]. Available from URL: https://xxgk.mot.gov.cn/2020/jigou/zhghs/202105/t20210517_3593412.htmlGoogle Scholar
Murmann, J. P., & Zhu, Z 2021. What enables a Chinese firm to create new-to-the-world innovations?. Strategy Science, 6(4): 305330.Google Scholar
National Retail Federation. 2022. A look at the 2022 Top 50 global retailers. [Cited 3 April 2022]. Available from URL: https://nrf.com/blog/look-2022-top-50-global-retailersGoogle Scholar
NBSC. 2022. Total retail sales of social consumer goods. [Cited 3 April 2022]. Available from URL: https://data.stats.gov.cn/easyquery.htm?cn=A01Google Scholar
NRAPRC. 2013. National railway operating mileage from 2003 to 2012. [Cited 24 May 2022]. Available from URL: http://www.nra.gov.cn/xxgk/gkml/ztjg/tjxx/hytj/202204/t20220405_289905.shtmlGoogle Scholar
Sohu. 2018. Taobao's personalized recommendation-based customer flow exceeded search-based customer flow, according to Taobao President Jiang Fan. [Cited 20 June 2022]. Available from URL: https://www.sohu.com/a/276135529_420580Google Scholar
Sohu. 2022. The e-commerce market landscape in 2021. [Cited 20 June 2022]. Available from URL: https://www.sohu.com/a/548342429_121097259Google Scholar
Statcounter. 2022. Search engine market share China (Mar 2021–Mar 2022). [Cited 1 April 2022]. Available from URL: http://gsa.statcounter.com/search-engine-market-share/all/chinaGoogle Scholar
Su, F., An, X. P., & Mao, J. Y. 2021. Innovations and trends in China's digital economy. Communications of the ACM, 64(11): 4447.Google Scholar
World Bank. 2022a. GNI per capita, Atlas method (current US$). [Cited 29 March 2022]. Available from URL: https://data.worldbank.org.cn/country/china?view=chartGoogle Scholar
World Bank. 2022b. GNI per capita, Atlas method (current US$). [Cited 29 March 2022]. Available from URL: https://data.worldbank.org/country/united-statesGoogle Scholar