Service Business

, Volume 13, Issue 1, pp 101–127 | Cite as

The industrial impact and competitive advantage of China’s ICT industry

  • Yongfei Li
  • Sang-Gun LeeEmail author
  • Myungjai Kong
Empirical article


The information and communication technology (ICT) industry affects other industries and economic sectors through technology diffusion and information transformation. This study uses input–output (IO) table to examine the industrial impact and competitive advantage of the ICT industry in China from 2002 until 2012. We concluded that (1) the ICT industry has partially higher industrial impact and competitive advantage over the non-ICT industry. The results of this study imply that promoting the ICT industry could help boost China’s economy, and investing offered possibilities for gaining more benefits compared to the non-ICT industry.


Input–output analysis China ICT industry Linkage effect Structural holes 


  1. Amighini A (2005) China in the international fragmentation of production: evidence from the ICT industry. Eur J Comp Econ 2(2):203Google Scholar
  2. Andrade AD, Doolin B (2016) Information and communication technology and the social inclusion of refugees. Mis Q 40(2):405–416CrossRefGoogle Scholar
  3. Aoun D, Hwang J (2008) The effects of cash flow and size on the investment decisions of ICT firms: a dynamic approach. Inf Econ Policy 20(2):120–134CrossRefGoogle Scholar
  4. Aviram R, Tami D (2004) The impact of ICT on education: the three opposed paradigms, the lacking discourse. Unpublished manuscript, Beer-Sheva University, IsraelGoogle Scholar
  5. Bakos JY, Treacy ME (1986) Information technology and corporate strategy: a research perspective. MIS Quarterly, pp 107–119Google Scholar
  6. Baliamoune-Lutz M (2003) An analysis of the determinants and effects of ICT diffusion in developing countries. Inf Technol Dev 10(3):151–169CrossRefGoogle Scholar
  7. Burt RS (2009) Structural holes: the social structure of competition. Harvard university pressGoogle Scholar
  8. Chadee DD, Pang B (2008) Technology strategy and performance: a study of information technology service providers from selected Asian countries. Service Bus 2(2):109–126CrossRefGoogle Scholar
  9. Chang P-L, Shih H-Y (2005) Comparing patterns of intersectoral innovation diffusion in Taiwan and China: a network analysis. Technovation 25(2):155–169CrossRefGoogle Scholar
  10. Chiu R-H, Lin Y-C (2012) Applying input–output model to investigate the inter-industrial linkage of transportation industry in Taiwan. J Mar Sci Technol 20(2):173–173Google Scholar
  11. Cho I, Park H, Choi J (2011) The impact of diversity of innovation channels on innovation performance in service firms. Service Bus 5(3):277CrossRefGoogle Scholar
  12. ISIC (2008) International standard industrial classification of all economic activities (ISIC), vol 4. United Nations PublicationsGoogle Scholar
  13. Dutta S, Mia I (2010) The global information technology report 2009–2010. In: World Economic Forum and INSEAD, SRO-Kundig Geneva, SwitzerlandGoogle Scholar
  14. Eggleston K, Jensen R, Zeckhauser R (2002) Information and communication technologies, markets, and economic development. The global information technology report 2001–2002: readiness for the networked worldGoogle Scholar
  15. EITO (2014) ICT market report 2014/15 definitions & methodologyGoogle Scholar
  16. EMIS (2014) ICT industry ChinaGoogle Scholar
  17. EUSME (2011) ICT market in ChinaGoogle Scholar
  18. EUSME (2013) The ICT market in ChinaGoogle Scholar
  19. García-Muñiz AS, Vicente MR (2014) ICT technologies in Europe: a study of technological diffusion and economic growth under network theory. Telecommun Policy 38(4):360–370CrossRefGoogle Scholar
  20. Hendriks P (1999) Why share knowledge? The influence of ICT on the motivation for knowledge sharing. Knowl Process Manag 6(2):91CrossRefGoogle Scholar
  21. Jiménez-Zarco AI, Martínez-Ruiz MP, Izquierdo-Yusta A (2011) Key service innovation drivers in the tourism sector: empirical evidence and managerial implications. Service Bus 5(4):339CrossRefGoogle Scholar
  22. Kretschmer T (2012) Information and communication technologies and productivity growthGoogle Scholar
  23. Kudyba S, Diwan R (2002) Research report: increasing returns to information technology. Inf Syst Res 13(1):104–111CrossRefGoogle Scholar
  24. Lenzen M (2003) Environmentally important paths, linkages and key sectors in the Australian economy. Struct Change Econ Dyn 14(1):1–34CrossRefGoogle Scholar
  25. Leontief WW (1986) Input–output economics. Oxford University Press on DemandGoogle Scholar
  26. Lin N, Cook KS, Burt RS (2001) Social capital: Theory and research. Transaction PublishersGoogle Scholar
  27. Lin GC, Wang CC, Zhou Y, Sun Y, Wei YD (2011) Placing technological innovation in globalising China: production linkage, knowledge exchange and innovative performance of the ICT industry in a developing economy. Urban Stud 48(14):2999–3018CrossRefGoogle Scholar
  28. Ma JX, Buhalis D, Song H (2003) ICTs and Internet adoption in China’s tourism industry. Int J Inf Manag 23(6):451–467CrossRefGoogle Scholar
  29. Mattioli G, Lamonica R (2013) The ICT role in the world economy: an input–output analysis. J World Econ Res 2(2):20–25CrossRefGoogle Scholar
  30. McGrath JE, Hollingshead AB (1994) Groups interacting with technology: Ideas, evidence, issues, and an agenda. Sage, Thousand OaksGoogle Scholar
  31. Meller P, Marfan M (1981) Small and large industry: employment generation, linkages, and key sectors. Econ Dev Cult Change 29(2):263–274CrossRefGoogle Scholar
  32. Mendelson H, Kraemer KL (1998) The Information industries: introduction to the special issue. Inf Syst Res 9(4):298–301Google Scholar
  33. Meng Q, Li M (2002) New economy and ICT development in China. Inf Econ Policy 14(2):275–295CrossRefGoogle Scholar
  34. Miller RE, Blair PD (2009) Input–output analysis: foundations and extensions. Cambridge University Press, CambridgeGoogle Scholar
  35. Morrissey K, O’Donoghue C (2013) The role of the marine sector in the Irish national economy: an input–output analysis. Marine Policy 37:230–238CrossRefGoogle Scholar
  36. Muñiz ASG, Raya AM, Carvajal CR (2010) Spanish and European innovation diffusion: a structural hole approach in the input–output field. Ann Reg Sci 44(1):147–165CrossRefGoogle Scholar
  37. Ning L (2009) China’s rise in the world ICT industry: industrial strategies and the catch-up development model. Routledge, New YorkGoogle Scholar
  38. OECD (2002) Measuring the information economy 2002Google Scholar
  39. Piatkowski M (2003) The contribution of ICT investment to economic growth and labor productivity in Poland 1995–2000Google Scholar
  40. Pohjola M (2002) The new economy: facts, impacts and policies. Inf Econ Policy 14(2):133–144CrossRefGoogle Scholar
  41. Punie Y, Zinnbauer D, Cabrera M (2006) A review of the impact of ICT on learning. Working paper prepared for DG EAC. Institute for Prospective Technological Studies, DG JRCGoogle Scholar
  42. Rasmussen PN (1956) Studies in inter-sectoral relations, vol 15. E. HarckGoogle Scholar
  43. Ryabova A, Pябoвa A (2015) Emerging FinTech market: types and features of new financial technologies. J Econ Soc Sci 7:4Google Scholar
  44. Santhanam R, Hartono E (2003) Issues in linking information technology capability to firm performance. MIS quarterly 27(1):125–153CrossRefGoogle Scholar
  45. Sapprasert K (2010) The impact of ICT on the growth of the service industries. Centre for Technology, Innovation and Culture, University of OsloGoogle Scholar
  46. Sari K, Arifin M (2014) The linkage among technology-intensive manufacture industries in east java by input-output analysis approach. STI Policy Manag J 12(1):45–54Google Scholar
  47. Simon JP (2011) The ICT landscape in BRICS countries: Brazil, India, China. European Commission Joint Research Centre Institute for Prospective Technological StudiesGoogle Scholar
  48. Sin Tan K, Choy Chong S, Lin B, Cyril Eze U (2009) Internet-based ICT adoption: evidence from Malaysian SMEs. Ind Manag Data Syst 109(2):224–244CrossRefGoogle Scholar
  49. Skan J, Dickerson J, Masood S (2015) The future of fintech and banking: digitally disrupted or reimaginedGoogle Scholar
  50. Smeets E (2005) Does ICT contribute to powerful learning environments in primary education? Comput Educ 44(3):343–355CrossRefGoogle Scholar
  51. Sonis M, Guilhoto JJ, Hewings GJ, Martins EB (1995) Linkages, key sectors, and structural change: some new perspectives. Dev Econ 33(3):243–246CrossRefGoogle Scholar
  52. Sonis M, Hewings J, Guo J (2000) A new image of classical key sector analysis: minimum information decomposition of the Leontief inverse. Econ Syst Res 12(3):401–423CrossRefGoogle Scholar
  53. Soofi AS, Ghazinoory S (2011) The network of the Iranian techno-economic system. Technol Forecast Soc Chang 78(4):591–609CrossRefGoogle Scholar
  54. Ssewanyana J, Busler M (2007) Adoption and usage of ICT in developing countries: case of Ugandan firms. Int J Educ Dev Using ICT 3(3):49–59Google Scholar
  55. Sun Y, Du D (2011) Domestic firm innovation and networking with foreign firms in China’s ICT industry. Environ Plan A 43(4):786–809CrossRefGoogle Scholar
  56. Trimi S, Faja S, Rhee S (2009) Impact of the Internet on interorganizational relationships. Service Bus 3(1):63–83CrossRefGoogle Scholar
  57. Wang CC, Lin GC (2008) The growth and spatial distribution of China’s ICT industry: new geography of clustering and innovation. Issues Stud 44(2):145–192Google Scholar
  58. Xing W, Ye X, Kui L (2011) Measuring convergence of China’s ICT industry: an input–output analysis. Telecommun Policy 35(4):301–313CrossRefGoogle Scholar
  59. Ye Z, Yin YP (2007) Economic linkages and comparative advantage of the UK creative sectorGoogle Scholar

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.DatastreamsSeoulKorea
  2. 2.Sogang UniversitySeoulKorea
  3. 3.Keimyung UniversityDaeguKorea

Personalised recommendations