The Impact of E-commerce Competition on New Product Entry in the Manufacturing Sector: Evidence from the Republic of Korea’s Manufacturing Establishments
Date:
7 May 2024Category:
Industry and Manufacturing, ServicesType:
Discussion PapersTags:
e-commerce, manufacturing, export, Republic of Korea, servicesPrint Article:
E-commerce has revolutionised the way firms and businesses operate and compete in the world economy. This paper examines the impact of e-commerce competition on new product entry in the manufacturing sector, using a unique dataset of the Republic of Korea’s manufacturing establishments. Our empirical results suggest that in the era of e-commerce competition, only manufacturers with advanced technological capabilities can survive and create new products to overcome the competition. Moreover, the manufacturers that are able to create new products may be targeting the export markets. This study contributes to the broader literature on the relationship between competition and product innovation by examining how e-commerce participation promotes the creation of new products by manufacturers seeking to survive in a more competitive market.
