IEIS 2021: Proceedings of 8th International Conference on Industrial Economics System and Industrial Security Engineering (Lecture Notes in Operations Research) 9811686599, 9789811686597

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Lecture Notes in Operations Research

Menggang Li · Gábor Bohács · Anqiang Huang · Dan Chang · Xiaopu Shang Editors

IEIS 2021 Proceedings of 8th International Conference on Industrial Economics System and Industrial Security Engineering

Lecture Notes in Operations Research Editorial Board Members Ana Paula Barbosa-Povoa, University of Lisbon, LISBOA, Portugal Adiel Teixeira de Almeida

, Federal University of Pernambuco, Recife, Brazil

Noah Gans, The Wharton School, University of Pennsylvania, Philadelphia, USA Jatinder N. D. Gupta, University of Alabama in Huntsville, Huntsville, USA Gregory R. Heim, Mays Business School, Texas A&M University, College Station, USA Guowei Hua, Beijing Jiaotong University, Beijing, China Alf Kimms, University of Duisburg-Essen, Duisburg, Germany Xiang Li, Beijing University of Chemical Technology, Beijing, China Hatem Masri, University of Bahrain, Sakhir, Bahrain Robin Qiu, Pennsylvania State University, Malvern, USA Ravi Shankar, Indian Institute of Technology, New Delhi, India Roman Slowiński, Poznań University of Technology, Poznan, Poland Christopher S. Tang, Anderson School, University of California Los Angeles, Los Angeles, USA Yuzhe Wu, Zhejiang University, Hangzhou, China Joe Zhu, Foisie Business School, Worcester Polytechnic Institute, Worcester, USA Constantin Zopounidis, Technical University of Crete, Chania, Greece

Lecture Notes in Operations Research is an interdisciplinary book series which provides a platform for the cutting-edge research and developments in both operations research and operations management field. The purview of this series is global, encompassing all nations and areas of the world. It comprises for instance, mathematical optimization, mathematical modeling, statistical analysis, queueing theory and other stochastic-process models, Markov decision processes, econometric methods, data envelopment analysis, decision analysis, supply chain management, transportation logistics, process design, operations strategy, facilities planning, production planning and inventory control. LNOR publishes edited conference proceedings, contributed volumes that present firsthand information on the latest research results and pioneering innovations as well as new perspectives on classical fields. The target audience of LNOR consists of students, researchers as well as industry professionals.

More information about this series at https://link.springer.com/bookseries/16741

Menggang Li Gábor Bohács Anqiang Huang Dan Chang Xiaopu Shang •

•

• •

Editors

IEIS 2021 Proceedings of 8th International Conference on Industrial Economics System and Industrial Security Engineering

123

Editors Menggang Li Beijing Jiaotong University Beijing, China Anqiang Huang Beijing Jiaotong University Beijing, China

Gábor Bohács Budapest University of Technology and Economics Budapest, Hungary Dan Chang Beijing Jiaotong University Beijing, China

Xiaopu Shang Beijing Jiaotong University Beijing, China

ISSN 2731-040X ISSN 2731-0418 (electronic) Lecture Notes in Operations Research ISBN 978-981-16-8659-7 ISBN 978-981-16-8660-3 (eBook) https://doi.org/10.1007/978-981-16-8660-3 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore

Organization

8th International Conference on Industrial Economics System and Industrial Security Engineering (IEIS 2021) 23–26 July 2021, China

In Cooperation with Budapest University of Technology and Economics, Hungary Informatics Research Centre, University of Reading, UK Shandong University, China

Hosted by IEEE SMC Technical Committee on Logistics, Informatics and Industrial Security Systems National Academy of Economic Security of Beijing Jiaotong University, China The International Center for Informatics Research of Beijing Jiaotong University, China China Center for Industrial Security Research of Beijing Jiaotong University, China School of Economics and Management of Beijing Jiaotong University, China

Organizing Committee Honorary Chair Shoubo Xu

Academician of China National Academy of Engineering, China

General Co-chairs Qiusheng Zhang, China Menggang Li, China Runtong Zhang, China v

vi

Zhongliang Guan, China Gabor Bohacs, Hungary Qingchun Meng, China

Program Co-chairs Zhenji Zhang, China Peixin Zhao, China Juliang Zhang, China Xianliang Shi, China Adam Torok, Hungary

Organization Chair Xiaochun Lu, China Jianghua Zhang, China

Publication Co-chairs Guowei Hua, China Yisong Li, China Xiaopu Shang, China

Finance Co-chairs Shifeng Liu, China Dan Chang, China Jingci Xie, China

Special Session/Workshop Chair Hongjie Lan, China Anqiang Huang, China

Publicity Co-chairs Daqing Gong, China Yunan Zhang, China

Secretary Zeyu Wu, China

Web Master Zikui Lin, China

Organization

Organization

vii

International Steering Committee Chair Yifu Lin

The Academic Board of China Center for Industrial Security Research, Beijing Jiaotong University, China

Members Orley Ashenfelter Michael Bell Yushu Cao Xiqing Chen Peiyong Gao David Gonzalez-Prieto Weida He Ran Jiao BeiJin Menggang Li Pumin Li Wenxing Li Zhi-Chun Li Wei Liu Yanhua Liu Oriol Lordan Jurgita Raudeliuniene Xiaoqiu Wu Yibin Xiao Hangjun Yang Hongjun Yu Bo Zou Xinli Zheng

University of Princeton, USA The University of Sydney, Australia The State Council of Western China Development Leading Group Office, China United Front Work Department of CPC Central Committee, China Chinese Academy of Social Sciences, China Universitat Politècnica de Catalunya BarcelonaTech, Spain University of Science and Technology Beijing, China Xinhua News Agency Editorial of Economic Information, China Chinese Academy of Social Sciences, China Beijing Jiaotong University, China National Development and Reform Commission, China Beijing Jiaotong University, China Huazhong University of Science and Technology, China Peking University, China Ministry of Science and Technology, China Universitat Politècnica de Catalunya BarcelonaTech, Spain Vilnius Gediminas Technical University, Lithuanian Renmin University of China, China University of Electronic Science and Technology of China University of International Business and Economics, China Peking University, China University of Illinois at Chicago, USA China Central Policy Research Office, China

viii

Organization

International Program Committee Karim Abadir Jason Abrevaya Alessandro Acquisti Rishi Amrit Jalal Ali W. David Allen Mark Armstrong Quanyong Bai Bhavik R. Bakshi Kash Barker David A. Belsley Walter E. Block Barry W. Boehm Kevin Buell Bob Buerger Bo Carlsson R. Chandramouli Ha-Joon Chang Dingguo Chen Z. M. Chen B. Chen Kay-Yut Chen G. Q. Chen Qun Chen Yin-Wong Cheung Senta Fowler Chmiel JingChong Robert A. Collins Susmita Dasgupta Jianguo Du Walter Enders James E. Epperson Benjamin Faber Jonathan Fleming Yunjiang Geng Mike Gorman M. H. Gossard Kannan Govindan Campbell R. Harvey Mohamed Hassan

Imperial College Business School, UK The University of Texas at Austin, USA Carnegie Mellon University, USA University of Wisconsin–Madison, USA George Washington University, USA University of Alabama, USA Oxford University, UK North China Electric Power University, China Ohio State University, USA University of Oklahoma, USA Boston College, USA Loyola University, USA University of Southern California, USA Arizona State University, USA University North Carolina, USA Case Western Reserve University, USA Stevens Institute of Technology, USA University of Cambridge, UK Siemens Power Transmission and Distribution Inc., China Peking University, China Peking University, China Yahoo Labs, USA Peking University, China Chongqing University, China University of California, USA West Virginia University, Morgantown, USA Pennsylvania State University, USA Santa Clara University, USA World Bank, Development Research Group, Washington, USA Jiangsu University, China University of Alabama, USA University of Georgia, USA University of California, Berkeley, USA Sloan School of Management, Massachusetts Institute of Technology, USA Dalian University of Technology, China University of Dayton, USA University of Oregon, USA University of Southern Denmark, Denmark Duke University, USA American University of Sharjah, USA

Organization

Martin B. Haugh Lixin He Chung L. Huang F. Owen Irvine Marc T. Junkunc John Jack Kanet Georgios Karras Mohammed Ketel Marlene Kim Michael E. Kuhl Roberta Lamb Gregory Lewis Xuemei Li Liwen Li Fei-peng Li Jeremy Lin Winston T. Lin John List Graham Lord Ming Lu M. Rajabalinejad Rongguang Ma Wentao Ma Lu Ma Guanfeng Mao Victor Mbarika Ali Miili Nagurney Joyojeet Pal Fay Cobb Payton Parag C. Pendharkar Edmund S. Phelps Shaozhou Qi Oliver Rubel S. Hossein Samiei Scott Schuh Awan Malik Shahzad K. Yupeng Shi Donghui Shi Fazel Shokoofeh

ix

Columbia University, USA Fudan University, China University of Georgia, USA Michigan State University, USA University of Miami, USA University of Dayton, USA University of Illinois at Chicago, USA University of Baltimore, USA University of Massachusetts Boston, USA Rochester Institute of Technology, USA University of California, USA Oxford University, USA Beijing Jiaotong University, China National Taiwan University, Taipei, China Tianjin University, China PJM Interconnection, USA The State University of New York at Buffalo, USA University of Chicago, USA Princeton University, USA Fudan University, China Delft University of Technology, Netherlands Renmin University of China, China Xi’an Jiaotong University, China Guangxi University of Science & Technology, China South Central University, China Southern University and A&M College, USA West Virginia University, USA University of Massachusetts, USA University of Michigan, USA North Carolina State University, USA Pennsylvania State University, USA Columbia University, USA Wuhan University, China Lawrence Berkeley National Laboratory, Berkeley, USA International Monetary Fund, Washington, USA Federal Reserve Bank of Boston, USA University of Warwick, Coventry, UK Central University of Finance and Economics, China Anhui University of Architecture, China Montana State University Billings, Montana, USA

x

Nachiappan Subramanian Chi-wei Su Shyam Sunder Wenhao Tan Charles S. Tapiero Carlos Teixeira Yu-Chung Tsao Luis G. Vargas David L.Veenstra Jeff Wagner Carl E. Walsh WB Walstad Junqiang Wang Fei Wang Cheng Wang Charles M. Weber R. W. Wies Christopher D. Wilen Bart J. Wilson Steve Winkelman G. C. Winston EveWittenberg J. Woelcke Kar-yiu Wong Kesheng Wu Lida Xu Bing Xu Lei Yang Jie Yang Muhamet Yildiz Dahai You Jiashen You Ning Yu Guocai Yu Matthew Zeidenberg Guofang Zhai Xuehua Zhang J. X. Zhang Zhongxiang Zhang Weixi Zhang Zhuo Zhang

Organization

Nottingham University Business School, China Ocean University of China, China Yale School of Management, USA Nanchang University, China Polytechnic University of New York, USA The New School University, USA Tatung University, Taipei, China University of Pittsburgh, USA University of Washington, USA Rochester Institute of Technology, USA University of California, Santa Cruz, USA University of Nebraska, USA Northwestern Polytechnical University, China School of Business Sias International University, China The Institute of Industrial Economics, CASS, China Portland State University, USA University of Alaska Fairbanks, USA Carleton College, USA Chapman University, USA Center for Clean Air Policy, USA Williams College, USA Harvard University, USA World Bank, Washington, USA University of Washington, USA Lawrence Berkeley National Laboratory, USA Old Dominion University, USA Zhejiang Gongshang University, China South China University of Technology, China University of Houston-Victoria, USA Northwestern University, USA Huazhong University of Science and Technology, China University of California, Los Angeles, USA Renmin University of China, China Shandong University of Technology, China Columbia University, USA Nanjing University, China Tianjin Polytechnic University, China Xian Technology University China, China Fudan University, China Tianjin Polytechnic University, China Nanjing University of Aeronautics and Astronautics, China

Organization

Xia Zhao Jing Zhao Shenghua Zheng Yaodong Zhou Zhiwen Zhu Shubin Zhu

xi

China Agricultural University, China Beijing Forestry University, China Zhejiang University of Technology, China Beijing Jiaotong University, China Tianjin University, China Jiangxi Agricultural University, China

Contents

The Evaluation System of Publishing Industry’s Competitiveness in Overseas Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dong Tong

1

Economic Research on Regional Poverty Alleviation and Prevention of Return to Poverty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Qiangjing Zhang, Jun Tian, and Linlin Fu

8

Sustainable Performance of Rural Banking: A Heterogeneity Study in the Coastal Regions of China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jun Wei

16

Research on the Influence of New Energy Vehicles Industry Eco-business Model on Brand Competitiveness . . . . . . . . . . . . . . . . . . . Qianyu Mao, Ruiyang Wang, and Zhen Li

24

Equity Diversification and Capital Allocation Efficiency: Evidence from China’s Mixed Ownership Reform . . . . . . . . . . . . . . . . . . . . . . . . Qi Wang and Zhong Ma

37

Research of “2025 Digital Empowerment Plan” Promotes Development of High-Level Sophisticated Industry Talents . . . . . . . . . . Jiajia Liu

45

Research on the Development Path of Cultural Industry from the Perspective of “The Belt and Road” . . . . . . . . . . . . . . . . . . . . . . . . . Shanhua Zhao and Xiaqin Wu

54

A Comparative Study on Synergy Degree of Human Resource Development–Take Marginal Cities in Zhejiang, Fujian, Jiangxi and Anhui Provinces as Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Keyong Wan and Chaojie He

67

xiii

xiv

Contents

Research on the Influence of Digital Finance on Residents’ Service Consumption Expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Menggang Li, Guangwei Rui, and Jingcheng Li

79

Analysis of Characteristics of Market Form of Entertainment Products in Modern Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lu Yu

92

Social Relationship Network Within Publishing Industrial Cluster . . . . 101 Shouxian Liu and Xinyi Gu City Brain: A New Model of Urban Governance . . . . . . . . . . . . . . . . . . 107 Wei Liu, Yiduo Mei, Yazhong Ma, Weiling Wang, Fangda Hu, and Dapeng Xu Analysis on the Development Path of Enterprise Transformation and Upgrading—Based on the Strategic Niche Theory . . . . . . . . . . . . . 116 Yue Zhang and Jiayuan Wang Author Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

The Evaluation System of Publishing Industry’s Competitiveness in Overseas Market Dong Tong(B) School of Economics and Management, Beijing Institute of Graphic Communication, Beijing, China [email protected]

Abstract. The competitiveness of book publishing industry in overseas market is closely related to the industry security of book publishing industry. The evaluation method of book publishing industry’s competitiveness in overseas market is based on hierarchical structure model. The competitiveness evaluation of book publishing industry in overseas market includes three levels. There are five first level indicators, which are basic competitiveness, production and operation capacity, opening-up capacity, international competitive environment and industrial development capacity. There are 10 secondary indicators and 31 tertiary indicators. Keywords: Evaluation system · Publishing industry · Overseas market · Competitiveness

1 Introduction The competitiveness of book publishing industry in overseas market refers to that the publishing products and related services produced and sold by a country or region occupy a larger international market and obtain more profits compared with other countries. At the same time, they have the ability and potential to create more value-added wealth than other countries. Compared with using a single index to measure the competitiveness of the publishing industry in the overseas market, the comprehensive index system can accurately reveal the real level of the competitiveness of a country’s book publishing industry in the overseas market. These indicators include: the status quo of book publishing products in overseas markets, the production and development capacity of book publishing enterprises, and the promotion potential of the competitiveness of book publishing products. Therefore, the selection of evaluation index should be comprehensive and multi angle. The index system should not only include quantitative measurement and scoring, but also reasonably set the relevant weights between criterion layer and scheme layer, and between index and index through expert comprehensive evaluation, so as to avoid the error caused by subjective judgment. At the same time, in the selection of indicators, we should highlight the sustainability of the development of book publishing industry and the competitiveness of book publishing products, and highlight the role of technology, system, human capital, related financial services and other factors. According © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, pp. 1–7, 2022. https://doi.org/10.1007/978-981-16-8660-3_1

2

D. Tong

to the different data sources of the evaluation indexes selected in the research process, the evaluation indexes of the competitiveness of the book publishing industry in the overseas market can be divided into two categories: quantitative indexes with numerical measurement and subjective indexes that need to be evaluated and scored.

2 Index Selection 2.1 Index System The first level index of basic competitiveness includes two second level indexes: Publishing scale and publishing assets. The first level index of publishing scale includes three third level indexes: the number of book publishing industry, the single scale of book publishing industry, and the operation years of book publishing enterprises. The second level index of publishing assets includes four third level indexes: total assets of book publishing enterprises, business income of book publishing enterprises, business profit of book publishing enterprises and net income of book publishing enterprises. The first level index of production and operation capacity includes three second level indexes: production capacity, operation capacity and technological innovation capacity. The second level indicators of production capacity include two third level indicators: the number of book publishing products and the types of book publishing products. The second level index of operation capability includes four third level indexes: production cost, production profit, sales profit rate and return on total assets. The second level indicators of technological innovation capacity include four third level indicators: intellectual property protection, patent applications, technology digestion capacity and the number of research institutions. There is only one second level index in the first level index of opening-up ability, which is the ability of overseas expansion. The second level index of overseas expansion capability includes three third level indexes: international market share, revealed comparative advantage index and trade competitiveness index. The first level index of international competitive environment includes two second level indexes: economic environment and political environment. The second level indicators of economic environment include three third level indicators: the overall economic level of the country, GDP, the degree of internationalization and the regulatory capacity of the financial system. The second level indicators of political environment include three third level indicators: the completeness of policies and regulations, incentive policies and industrial development policies. The first level index of industrial development capability includes two second level indexes: output growth capability and production and operation development capability. The second level index of output growth capacity includes three third level indexes: R & D investment intensity, proportion of R & D personnel and output value rate of new products. The second level index of production and operation development power includes two third level indexes: output growth rate and net profit growth rate. 2.2 Hiberarchy Structure Model In the application of analytic hierarchy process, the evaluation index should be organized and hierarchical according to the general objective, and a hierarchical structure model

The Evaluation System of Publishing Industry

3

should be constructed objectively. For example, the top layer (target layer) describes the evaluation objectives. The criteria layer (index layer) describes the different factors and attributes of evaluation objectives. Each criterion should be able to accurately express different aspects of the evaluation objectives, and each criterion is relatively independent. If there are too many elements in the criteria layer, it is better to divide it into several sub levels, as shown in Fig. 1. The bottom layer (scheme layer) describes the evaluation scheme or evaluation object. Reasonable hierarchical structure should have three characteristics: clear hierarchy, clear relationship, comprehensive and concise.

Evaluation objectives (A)

Criterion layer (B2)

Criterion layer (B1)

Programme (C1)

Programme (C2)

Top layer

Criterion layer (B3)

Programme (C3)

Criterion layer

Bottom layer

Fig. 1. Hierarchical structure model

3 Dimensionless Processing The evaluation of the competitiveness of China’s publishing industry in the overseas market is based on the fixed weight accumulation method, and the weight is determined by two factors: the framework design of the index and the opinions of experts. At present, the mainstream evaluation system in the world, such as “UN e-government evaluation”. All these evaluations adopt the method of fixed weight accumulation. This paper uses different methods to calculate, combined with the expert’s opinion, and finally determines the method of fixed weight accumulation. The dimensionless mathematical model for the evaluation of the competitiveness of China’s publishing industry in overseas markets is as follows.

4

D. Tong

3.1 Range Transformation of Quantitative Index Yi =

Xi − min(X ) max(X ) − min(X )

(1)

Among them, Xi is the original value of an evaluation index, min(X ) is the minimum value in the original data of the index, max(X ) is the maximum value in the original data of the index, Yi is the adjusted value. After calculation, the value range of data is 0–1. Its geometric meaning is: the coordinate origin moves to the minimum position, but it does not affect the degree of correlation between variables. 3.2 Initial Value Transformation of Subjective Index Data Xi Yi = max (X )

(2)

Among them, Xi is the original value of an evaluation index, max(X ) is the maximum value in the original data of the index, Yi is the adjusted value. After initial value processing, all subjective index data values are between 0–1. 3.3 Percentage Transformation of Ranking Data 100 Yi = 100 − N (Value of rank Xi − 0.5)

(3) (4)

Among them, Xi is the original value of an evaluation index, Yi is the number of participants, which is the percentage value after adjustment, and the range is (0,100). If there are dimensions in the percentage data obtained by calculation, the above method can be used for adjustment. 3.4 Weight of Indicators Measure the influence degree of index J of the third level on any other index k (k = j) of the third level. For index J, the index value sequence of other index k is used as the reference sequence, and the index sequence of index J is used as the comparison

The Evaluation System of Publishing Industry

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sequence. The norm grey correlation degree εjk (1 ≤ j ≤ n, 1 ≤ k ≤ n) of index J to other indexes K is calculated. When εjk = 1, the index has the highest correlation with itself. ⎡

1 ⎢ ε21 ⎢ ε=⎢ . ⎣ ..

ε12 1 .. .

⎤ · · · ε1n · · · ε2n ⎥ ⎥ . . .. ⎥ . . ⎦

(5)

εn1 εn2 · · · 1

Where, εjk is the norm grey correlation degree between the j-th index and the k-th index. Using the method of norm grey correlation degree, the group norm grey correlation degree of an index can be calculated. ε+ is the ideal column of correlation coefficient.  ε+ = maxj εjk |1 ≤ j ≤ n, 1 ≤ k ≤ n (6) = ε+ (k)|1 ≤ k ≤ n ε− is the negative ideal column of correlation coefficient.  ε− = maxj εjk |1 ≤ j ≤ n, 1 ≤ k ≤ n = ε− (k)|1 ≤ k ≤ n The two norms of the j-th index sequence are defined as

n

2 + dj = εjk − ε+ (k) k=1

dj−

=

n k=1



2 εjk − ε− (k)

(7)

(8) (9)

The group norm grey correlation degree of index J is εj =

dj− dj+ + dj−

(10)

The weight of index J is εj ωj = n

j=1 εj

(11)

Finally, we get the weight sequence as follows W = (ω1 , ω2 , . . . , ωn )

(12)

6

D. Tong

4 Measurement of the Competitiveness of Publishing Industry in Overseas Market The evaluation of the competitiveness of the book publishing industry in the overseas market is mainly to compare the state or characteristics of the competitiveness of China’s book publishing industry in the overseas market at different times, analyze its achievements, shortcomings, evolution rules, potential and trends, and then put forward the conclusion and countermeasures. It helps to investigate the basic laws of the development of book publishing industry from a historical perspective, and accumulate and summarize development experience. And then provide a theoretical basis for the next work. In the evaluation index system of the competitiveness of book publishing industry in overseas markets, the qualitative indexes are mostly related to the nature of objectives. And it has been in the process of dynamic development and change. It is not only a dynamic incremental factor in the evolution of the competitiveness of the book publishing industry in the overseas market, but also a process factor affecting the results of competition. It is difficult to describe its essence or dynamic change in a short time. Therefore, the index measurement in this paper intends to ignore the significant or non-significant changes of qualitative indicators in the past year. It only calculates the competitiveness index of quantitative index in overseas market from the dynamic point of view. In this way, we can use the objective evaluation results to explore the historical evolution and upgrading trend of the competitiveness of China’s book publishing industry in the overseas market in different years. The best value of the original data of China’s quantitative indicators in the table is listed separately. In this way, we can get a set of maximum sequence, which can be used as reference sequence. All the index values were dimensionless. The dimensionless results of each quantitative index value can be obtained. The dimensionless result sequence of the maximum value is taken as the reference sequence. The dimensionless result series of each year’s index value is taken as the comparison series. It can calculate the correlation coefficient of the two indexes. These data constitute the correlation coefficient matrix E. By calculating the variation coefficient of each index in the quantitative index system, the variation coefficient vector of quantitative index can be obtained. By importing the variation coefficient vector of quantitative index into the formula, the weight of each corresponding index can be allocated, and the weight vector of each index in the current evaluation layer can be obtained. Take T = index number, fit the quantitative index layer correlation degree to the target layer. It can calculate the final relevance of the target level of the book publishing industry’s competitiveness in the overseas market over the years. That is, the comprehensive index of competitiveness in overseas markets. Because the subtle changes of qualitative indicators are ignored in the longitudinal evaluation. So as to evaluate the quantitative indicators scattered in each system and element in the whole evaluation index system. Therefore, when calculating the comprehensive index of competitiveness in overseas markets, the correlation degree of four evaluation layers (index layer, element layer, system layer and target layer) cannot be fitted in order as horizontal evaluation.

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In order to deeply analyze the diachronic changes of the competitiveness of the book publishing industry in the overseas market. In this paper, we will calculate the correlation coefficient of quantitative elements which are composed of quantitative indicators, that is, the score of overseas market competitiveness. And then fit the correlation coefficient of the only quantitative system composed of quantitative elements, that is, the score of competitiveness in the overseas market. Acknowledgements. Supported by scientific research projects of Beijing Municipal Commission of Education “The innovation diffusion of Beijing cultural and creative industries and the optimization of the whole industry chain structure” (SM202110015002).

References 1. Shi, D., Wang, T.: Research on competitiveness of provinciai pubiishing industry based on dynamic factor analysis. Publishing J. 026, 70–80 (2018) 2. Ding, S.Q., Zhou, W.Q.: Research on the cultivation path of regional publishing industry competitiveness from the perspective of all-media. J. Soc. Sci. Harbin Normal Univ. 20, 172– 175 (2019) 3. Prahal Ad, C.K., Hamel, G.: The Core Competence of the Corporation. Strateg. Learn. Knowl. Econo. 3–22 (2000) 4. Huang, X.R., Ma, L.: Adjusted paths of the development policy of publishing industry to maintain the ideological security in the era of intelligent media. In: Editorial Friend, pp.36–39 (2020)

Economic Research on Regional Poverty Alleviation and Prevention of Return to Poverty Qiangjing Zhang, Jun Tian, and Linlin Fu(B) School of Management, Yunnan Minzu University, Kunming, China [email protected], [email protected]

Abstract. This article adopts the “S-curve” theory and takes residents’ income as the main line to explain the evolutionary course of regional poverty alleviation. Discuss the causes and essence of the “poverty trap” from the perspective of economic behavior. It also further explores the challenge of the “middle income trap” that may be encountered in the stage of entering a well-off society in an allround way for the overall escape from poverty. Finally, according to the practical requirements of the regional overall poverty alleviation and building a well-off society, the overall regional poverty situation is analyzed, and the regional overall poverty-stricken areas’ experience in winning the poverty alleviation battle is summarized. Propose strategies and suggestions that can break the poverty formation mechanism and prevent poverty return. Keywords: Regional overall poverty · “S-shaped curve” theory · Scarcity trap · To prevent the Chinese

1 A Summary of Research on Poverty1 In order to formulate more scientific and targeted anti-poverty policies, there are endless studies on the classification and measurement of poverty, influencing factors, accurate identification, reduction methods and implementation effects. These studies provide an important theoretical basis and practical guidance for solving regional poverty as a whole. The research on the classification and definition of poverty is the basis of anti-poverty theory and practice. Ravallion (1988) divides poverty in a certain period into permanent poverty and temporary poverty [1]. Hulme and Shepherd (2003) further subdivided it into five categories from the perspective of the length of time that individuals and families fell into poverty: permanent poverty, frequent poverty, stalemate poverty, occasional poverty and never poverty [2]. Gustafsson and Ding (2009) studied the distribution of permanent poverty and temporary poverty in China’s rural areas. They concluded that the proportion of temporary poverty was significantly higher than that of permanent poverty [3]. The analysis of the main influencing factors of poverty will help prevent 1 The accomplishment of this paper is founded by the National Science Foundation of China

(Grant No.71963037). © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, pp. 8–15, 2022. https://doi.org/10.1007/978-981-16-8660-3_2

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the return of poverty in a more comprehensive and targeted manner. Du Fenglian and Sun Jingfang (2011) found that the main factors affecting poverty include three aspects: region and region, personal quality and intergenerational transmission of poverty [4]. Glauben et al. (2012) studied why long-term poverty exists in rural China and how to get rid of poverty based on data from Zhejiang, Hubei and Yunnan provinces. He found that the education level of family members has an inverse relationship with chronic poverty [5]. Ni Qiangli and Tong Yaping (2016) pointed out that although economic growth played a positive role in alleviating poverty. In addition, they proposed targeted poverty alleviation countermeasures and suggestions from the four aspects of local government, village collectives, farmers, and social forces [6]. Xie E (2017) pointed out that improving the quality of income redistribution and reducing poverty is an important role of finance, and studied the effect of increasing public transfer payments on income inequality and poverty [7]. Research on the related concepts of returning to poverty will help to better understand the return to poverty and the proposal of strategies for returning to poverty. Ding Jun and Chen Biaoping (2010) pointed out that returning to poverty generally refers to the phenomenon that part of the population who got rid of poverty after poverty alleviation and development return to the ranks of the poor population again [8]. Regarding the reasons for returning to poverty, Yao Xuegang (2020) believes that it is still possible to return to poverty after being lifted out of poverty. This is mainly because the poor people themselves have certain vulnerabilities or the risk of returning to poverty has not been completely eliminated [9]. In terms of the types of poverty return, Bao Guoxian (2018) found that according to the content and relationship of the subject, object, and carrier, poverty return can be divided into four types: system-policy return-poverty, resourceenvironment-type return-poverty, disaster risk-type return-poverty, and ability habit-type return-poverty [10].

2 Economic Explanation of Regional Overall Poverty Alleviation and Prevention of Return to Poverty At the end of the 19th century, French sociologist Gabriel Tarde (2009) observed that the adoption rates of a new thought followed an S-shaped curve in time [11]. It laid the theoretical foundation of the “S-curve”, enriched and developed the research methods of diffusion theory and social learning theory. From the perspective of the development course of human society, a well-off society refers to a “well-offsociety”, which is a social form between the poor and the rich. The former is the only way to go while the latter is the goal in the future. To understand the scientific connotation and essence of poverty alleviation from the perspective of economic behavior, the S-shaped curve theory can be used to explain the evolution of poverty alleviation by taking residents’ income as the main line. 2.1 The Economic Significance of “S-shaped Curve” to Poverty Alleviation and Preventing Return to Poverty The theory and practice of poverty alleviation and building a well-off society is the process of getting rid of poverty and overcoming the “low-income trap” to achieve

10

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prosperity. The S-shaped curve is used to illustrate the meaning of the challenge of “lowincome trap”. As shown in Fig. 1, the diagonal line NQ indicates that today’s income is equal to tomorrow’s income. The “poverty trap” mainly refers to individuals, families, groups, regions and other subjects in a state of poverty that continue to regenerate poverty due to poverty, and they have been in a vicious circle of poverty for a long time and are unable to extricate themselves from generational transmission. The Marxist political economy theory tells us that “people can only engage in spiritual activities such as science, culture and art only after they have solved their basic life needs such as food, clothing, and housing.” Therefore, the most basic and crucial thing to solve the problem of poverty is to get rid of the plight that may fall into the “poverty trap”.

Fig. 1. “S-curve” and “low income trap” challenges

In the “S-shaped curve”, the future income of people in the “poverty trap” is lower than today’s income, which means that over time, people in this group will get poorer and poorer, from A1 to A2 to A3, and eventually fall into poverty at the point N. On the contrary, the future income is higher than the current income, and the arrows extending along B1, B2, and B3 represent the positive trend of “getting out of poverty and going well-off”. They will become “middle-income” middle-class families due to their continuous income increase. They entered the stage of building a well-off society, and then became more and more wealthy. The region as a whole achieved the goal of building a well-off society in an all-round way (above B3), and developed along a relatively stable high-level stage. It can be considered that building a well-off society in an all-round way (breaking B3) means getting rid of the danger of slipping back into the “poverty trap” and refusing to return to poverty. For low-income families, especially for the subsistencetype absolutely poor people below the poverty line, people generally realize that solving their hunger and maintaining the minimum living consumption expenditure required for basic life survival is the most important step. But to get rid of the “poverty” evil, some major “changes” or “transitions” must take place, that is, to get out of the “poverty trap” that economists often call, step into the threshold of a “middle-income” society, and move toward a well-off society in an all-round way.

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2.2 The Cause, Essence and Logical Relationship of “Poverty Trap” Poverty is a condition in which people want to escape threats to their survival and development. Such as hunger, homelessness, lack of clean drinking water, schooling, unemployment, old age, disease, war and death threats, loss of rights and freedoms, insecurity, loss of dignity and decent life and other difficulties lead to a vicious circle of life, and can not escape. Economics generally believe that the reason why the population of poor countries or regions is poor is that these countries or regions are often located in hot climates or alpine mountains, with poor land, poor traffic, poor information, surrounded by the sea, and poor ecological environment. Or it may be uncertain factors such as natural disasters, major epidemic diseases or frequent wars. If they do not have a large amount of original investment to help them solve these local problems, it will be difficult for them to increase social productivity, and at the same time they will be in trouble because of poverty and unable to pay the return on investment. Therefore, for people in poor areas, the lack of money mainly refers to the basic living security needed and the basic funds to start. In reality, there are “disease trap”, “out-of-school trap” and “debt trap” which may lead to the deterioration of the living conditions of poor families. Behavioral economist Sendhil Mullainathan and cognitive psychologist Eldar Shafir (2014) constructed the “scarcity” theory in the field of economics and found that people’s behavior would be changed when they encounter scarcity things [12], such as time, money, food, etc. Poverty and busyness are not simply due to lack of money and time, but a lack of mentality and ability. From the connotation, scarcity refers to the psychological feeling that “having” is less than “needing”. Poverty is a kind of “scarcity”, is “scarce trap” of the most common and important form of expression. The basic logic is: poverty will capture people’s brain, make its distractions and focus too much on short of money, and thus increase the psychological pressure and cause the mind the lack of “leisure”, formed “bandwidth” thought burden. Thus loses its normal cognitive ability, judgment and execution control, lead to bad behavior such as incompetent, busy and inefficient, deepening poverty that further deterioration in unable to improve the “vicious circle”. Because of poverty, it will cause the decline of intelligence and the degradation of human capital, making people stupid, prone to making mistakes and impulsiveness, which is prominently manifested in short-sighted and borrowing behavior. Poverty makes a man with only two words “lack of money”. Love takes advantage, emphasizes immediate interests, ignores the future, does not pay attention to children’s education, and has no planning ability. They still dare not take a step forward, they are used to waiting and watching, it is difficult to find and grasp investment opportunities, and they will aggravate mental stress, alcoholism, gambling and emotional impulsive behaviors, physical diseases will also occur more frequently, and their ability will become weak…This series of behavioral phenomena will further solidify poverty and disability, and create a mentality of “waiting and relyling” on the poor. Therefore, to escape from the “poverty trap”, the fundamental way is to change the “scarcity” state, especially from the continuous change of the adverse environment to start to change people’s ideas, poverty mentality and other psychological behavior.

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2.3 The Challenge of “Middle Income Trap” to The Whole Region to Get Rid of the Dilemma of Returning to Poverty The development of human society follows the logic that material determines consciousness, and the people’s pursuit of a better life conforms to Maslow’s “pyramid” theory of needs. Discussing residents’ income from the “S-curve” is a good starting point. It reflects that households in an emerging country or regional economy have entered the middle-income stage from low per capita income and lower-middle income. That is, after entering the turning point of building a moderately prosperous society, it has entered the upper middle-income stage and has begun to move towards a wealthy society. This means getting rid of the plight of possible return to poverty. Therefore, from an economic perspective, the “middle income trap” constitutes the main challenge for the region as a whole to get rid of poverty. It refers to a stage of development in which an emerging country or economy has entered a middle-income level. Due to the inability to successfully achieve the transformation of the development mode, insufficient innovation capabilities have led to the weakening of economic growth momentum, and finally a state of economic stagnation. When an economy moves from middle income to upper middle income or high income, it can neither repeat nor get rid of the previous pattern of development from low income to middle income. “S-curve” also reflects the changes in income residents of an acceleration in economic development, “rich-poor divide”, the objective trend. In terms of the macro policies and strategies for alleviating poverty and building a moderately prosperous society in an all-round way, it is mainly to promote a fundamental change in the people-centered development model. At the same time, we will vigorously promote the equalization of public resources, focus on reducing the inequality and unfair contradictions between urban and rural residents in the fields of income distribution, wealth, health, education and employment, and insist on giving priority to social justice and taking into account efficiency. And pay attention to solving the problem of getting rich first and getting rich later, and take the road of common prosperity and building a harmonious, beautiful and all-round well-off society. Realize that the entire region can get rid of the predicament that it may return to poverty, so that the people can lead a beautiful and happy life with dignity and decency.

3 We will Follow the Broad Logic of the Anti-poverty Strategy and Resolutely Prevent the Return of Poverty in Areas that have been Lifted Out of Poverty Declaring war on poverty has the characteristics of history, complexity, relativity, arduousness and long-term nature. To consolidate the achievements in tackling poverty, to prevent the region back into poverty out of poverty, or building a moderately prosperous society, no matter what kind of way, it can not be achieved at once. It depends on implementing a long-term anti-poverty strategy, following the poverty scarcity formation mechanism and breaking the logic of the “poverty trap” and “middle income trap” of the “S-curve” theory. At the same time, aiming at the scarcity and psychological behavior characteristics of rural low-income families, we will adopt precise and effective government intervention strategies and poverty reduction actions. Only to ensure

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that farmers have sustained and stable industry income growth expectations, and move towards a virtuous circle of stable income growth in the “S-curve”. In this way, the spiritual poverty of “waiting and relying on the need” and the poverty mentality of striving to be a “poor household” are fundamentally broken, and only then can we get rid of the threat of “poverty trap”. Only in this way can we overcome the challenge of the “middle-income trap” and encourage more and more low-income rural families to enter the ranks of middle-income and live a well-off society in an all-round way. We must have precise goals and do a good job of the major political tasks of poverty alleviation and building a well-off society. Accuracy of goals is essential, and solving the poverty problem is the only way to build a well-off society in an all-round way. Building a moderately prosperous society in an all-round way is a key node to consolidate the achievements of poverty alleviation and get rid of the threats of “poverty trap” and “middle income trap”. So we have to firmly anchor building a moderately prosperous society “big goal.” Following the general logic of poverty alleviation and building a welloff society, we will focus on development and increase residents’ incomes, and coordinate the design of the “poverty standard + well-off standard” scientific combination strategy and policy to cope with the challenges of the “two traps”. Classified guidance, aiming at the standard for building a well-off society in all respects; precise implementation of policies to make up for the “shortcomings” of development in poor areas. “Build the ladder”, optimize investment, and break the vicious circle effect of the “poverty trap”. Efforts will be made to improve Yunnan’s infrastructure elements and change the natural environment, and other unfavorable factors, expand opening up, change the “poverty mentality”, make up for shortcomings in investment, and enhance the ability to continue to increase income. Continue to increase investment in public infrastructure elements in poverty-stricken counties throughout the province, concentrated contiguous areas, old revolutionary areas, and deeply impoverished frontier ethnic minority areas, thoroughly break the time and space bottlenecks in impoverished areas, and eliminate barriers between impoverished rural areas and the market. “Cut the poor roots”, expand the intellectual bandwidth, and continue to build rural human capital and intellectual capabilities. “Poverty alleviation requires intellectual support (will)” is to insist on human capital as the core. We must continue to increase investment in rural human resources, and accelerate the improvement of the quality of human capital and the ability to increase income. This is an important way to block the intergenerational transmission of poverty. Of particular concern is the need to attach great importance to the fairness and justice of poverty alleviation policies and measures. The national policy must be strictly implemented. It is necessary to avoid or reduce the increase in the debt burden and psychological pressure of farmers’ families, but also to prevent and reduce the introduction of policies and measures to solidify farmers’ “poverty mentality”. Prevention causes new and greater injustices. “Change poor jobs”, promote change, and focus on cultivating farmers’ ability to sustainably increase income. Accurate identification of objects must anchor the main group of rural low-income families. Adhere to the policy orientation of focusing on spirit and thinking to help the wisdom (will), and relying on the peasants’ endogenous motivation to get rid of poverty. First of all, we must solve the main contradictions and difficult problems. A new transformation from absolute poverty to relative poverty,

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subsistence poverty to development poverty, persistent poverty to transient poverty, and material poverty to spiritual poverty. Second, we must adhere to the result-oriented antipoverty policy and develop industries to support the economy. Based on the continuous and stable increase of farmers’ income, the “S-curve” of income of poor households and household balance sheets will be improved by expanding employment. In addition, various methods and channels must be adopted to increase the income from factors of production, transfer income and property income of rural households. In this way, the family income structure is continuously improved. Improve the ability to resist various risks by increasing and accumulating family wealth. Focus on precision and improve the “three pillars” of the government, enterprises and farmers’ long-term anti-poverty targeted poverty reduction mechanism. Adhere to the government’s smart strategy of “doing something and not doing something”, and guide and promote the formation of a “top-down” and “bottom-up” poverty alleviation and anti-poverty mechanism. First, it is necessary to accelerate the transformation of the government from a traditional poverty alleviator to a modern poverty alleviator in its new role. We must give full play to the government’s “visible hand” role, and carefully focus on providing public infrastructure products, public services, and improving the public environment. Secondly, we must give full play to the key role of enterprises in leading rural industries to get rid of poverty and become prosperous. Respect the independent creative spirit of the masses, and consistently exert its endogenous power. Promote positive changes in mentality through the role of the market and corporate organizations, and create a good social atmosphere. Once again, we must innovate the rural financial and insurance business. Promote full coverage of financial and insurance services to villages and households. Improve the ability of families who have escaped poverty to deal with emergencies and uncertain risks. Attach great importance to resolving unfair contradictions in rural society. Focus on disadvantaged groups who lack “basic income and basic living security”. We will earnestly do a good job in social coverage and popularize basic social welfare guarantees in rural areas.

References 1. Ravallion, M.: Expected poverty under risk-induced welfare variability. Econ. J. 393, 1171– 1182 (1988) 2. Hulme, D., Shepherd, A.: Conceptualizing chronic poverty. World Dev. 31(1), 403–423 (2003) 3. Gustafsson, B., Ding, S.: Temporary and persistent poverty among ethnic minorities and the majority in rural China. Rev. Income Wealth 55(1), 588–606 (2009) 4. Du, F., Sun, J.: An empirical analysis of poverty factors and poverty sensitivity: based on panel data 1991–2009. Econ. Sci. 3, 57–67 (2011) 5. Glauben, T., Herzfeld, T., Rozelle, S., Wang, X.B.: Persistent poverty in Rural China: Where, Why, and How to escape? World Dev. 40(4), 784–795 (2012) 6. Ni, Q., Tong, Y.: The current situation of poverty in the rich and the targeted poverty alleviation strategy: a case study of low-income farmers in Nantong City, Jiangsu Province. Manage. World 12, 176–177 (2016) 7. Xie, E.: The impact of public transfer payments on redistribution and poverty. Econ. Res. J. 9, 103–116 (2017) 8. Ding, J., Chen, B.P.: Building a sustainable poverty alleviation model to control the recurring poverty in rural areas. Soc. Sci. 188(01), 52–57 (2010)

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9. Xuegang, Y.: Reflections and suggestions on the establishment of monitoring and supporting mechanism for prevention of poverty return. Chongqing Admin. 21(02), 35–37 (2020) 10. Bao, G., Yang, H.: Study on the problem of returning to poverty and its early warning mechanism in China. J. Lanzhou Univ. (Soc. Sci. Edition) 46(06), 123–130 (2018) 11. Gabriel, T., Elsie Cruise Parsons: Imitation Law, Translated by He Daokuan. Renmin University of China Press, Beijing (2009) 12. Sendhil, M., Elder, S.: Scarcity: How We are Trapped in Poverty and Busyness, Translated by Wei Wei and Long Zhiyong. Zhejiang People’s Publishing House, Hangzhou (2014)

Sustainable Performance of Rural Banking: A Heterogeneity Study in the Coastal Regions of China Jun Wei(B) Beijing Jiaotong University, Beijing, China [email protected]

Abstract. For advantage of the coastal region, this paper focuses on provincial rural banking because of its important place of rural economy in China. In short term, isolated and unilateral performance evaluations in banking lead to overincentive. However, under-incentive is found in the long runs. With considerations of the inter-temporal effect of long periods, the present paper studies the dynamic total factor productivity evolution by incorporating carry-over activities of deposits. Furthermore, the bad debt risk is always an important risk for banking. In order to minimize the negative effects, based on the heterogeneity impact of non-performing loan on banking in China, negative externality is incorporated into the dynamic Malmquist model. Bottleneck of sustainable TFP in the rural banking industry in China is revealed by hierarchical clustering. The results demonstrate that the inter-temporal utility of deposit is gradually ignored. This implicates that short-term performance of banks is forced to give place to longterm performance.The bad debt risk exist large distances among the provincial rural banks based on the regional heterogeneity. Keywords: Rural banking · Performance · Total factor productivity · Coastal regional economy · Malmquist index

1 Introduction Over the last two decades, financial institutions and markets have undergone revolutionary change all over the world. The rural banks of China are no exception. In the specific context of these banks, the productivity growth has long been studied in the literature. Most papers examine efficiency and productivity change of financial institutions—covering a wide range of countries—by traditional Malmquist Index (Bolt and Humphrey 2010). Paradi et al. (2011) estimate Canadian bank by a two-stage DEA and modified SBM. Research studies that focus on the sustainable performance of banks are fewer. Cooper et al. (2008) distinguish between long term and short period efficiencies and inefficiencies to reveal the fact that joint stock banks, which have more modern management and access to international finance markets while state-owned banks generally use government funding. Akber et al. (2019) reported banks’ efficiency and productivity when some of the data used can take negative values. Jiang and He (2018) utilize productivity © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, pp. 16–23, 2022. https://doi.org/10.1007/978-981-16-8660-3_3

Sustainable Performance of Rural Banking

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changes and risk management in Indonesian banks based on SORM-DEA for dealing with negative data. This paper adds carry-over activities and negative externalities to these studies by addressing the issue of sustainable dynamic development in Chinese rural banks.

2 Methods 2.1 Data Explanation Chinese rural banks are an important part of a quasi-national rural financial system composed of policy banks, agricultural banks and credit cooperatives. They are the mainstay in rural finance and undertake the responsibility for supporting agriculture. Depending on the circumstances of the Chinese rural banks, every province has an own provincial rural bank. Their property rights may take the form of shareholding, share-cooperation or cooperation. This paper focuses on the performance of rural banking industry distributed in provinces of China which means the provincial rural banks stand for the heterogeneity across regions of the rural banking. Previous literature report government agencies typically measure productivity growth by output variables (such as value added, asset, deposit, loan, or operation number) and input variables (such as labor, capital, or branch) (Li and Hilmola 2019; Lim et al. 2018). In the work of Fukuyama and Weber (2010), Japanese bank performance were evaluated using a two-stage network model that included both good and bad outputs. Factors like physical capital, labor, and financial equity capital were absorbed to produce loan and securities investment along with deposit as intermediate output. To identify the regional heterogeneity in the dynamic situations of the banks in rural areas among provinces, the present paper focuses on thirty rural banks distributed across different provinces in China, excluding Tibet. Basing on dynamic Malmquist model, a set of four-year data is used to evaluate the total productivity and the decomposed efficiency of those banks. In the spirit of the literatures, we make factors of capital and staff based on the cost as the input variables. Profit based on revenue is taken as the desirable output variable. Besides that, this paper adds carry-over activities and negative externalities to these studies by addressing the issue of dynamic development and the risk controlling in Chinese rural banks, as shown in Table 1. Table 1. Data description. Index

Capital stock

Staffs

Deposit

Porfit

NPLR

Mean

71.3

21976

1210.8

1450.0

12.4

SD

61.7

15232

1163.7

1361.5

18.3

Min

0.6

2087

28.3

33.0

−29

Max

234.2

5940.7

6957.9

60896

Note: NPLR-Nonperforming Loan Ratio

104.3

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J. Wei

Resources of capital and staff are used by banks to earn profit, while deposits are taken as a kind of specific resource since deposit is attracted and considered as a positive indicator in performance evaluation. In the meanwhile, banks use deposits to make later profit. In the relative DEA research, especially research for banking performance, deposit is the debatable topic, it has the character of dynamic variable comparing with other variables. Therefore, the monetary fund of rural banks are defined as carry-over variables. For a more encompassing analysis, the non-performing loan (NPL) in banks stands for the risk of bad debt, which is in an inevitable symbiotic relationship with profit. Therefore, NPLs are set as the undesirable output variable for banks. 2.2 Conceptual Dynamic Malmquist Index Provincial rural banks are set as the units to make decisions (DMUs) that are the research objects during the rural banking performance evaluation. At period t, provincial rural banks (DMUs) produce desirable output Yd and undesirable output Yu using input X along with carry-over activity Z. The carry-over activity connects time periods, namely t − 1, t and t + 1. The regional heterogeneities exist in the inputs, outputs, and carry-over activity variables. In the conventional dynamic DEA model, catch-up effect and frontier shift effect are obtained by separate operations with (Xt, Yt) and (X t+1 , Y t+1 ). Nevertheless, in the study of Tone and Tsutsui (2010), the carry-over effect was introduced into the traditional dynamic DEA model, which was the Dynamic SBM (DSBM). The present manuscript mostly follows that idea. The frontier functions are evaluated, upon which the nonoriented measures of the efficiency are calculated (n DMUs across t period, taken period t as a reference point). Besides, r links are set as carry-over activities. Finally, the pure technical efficiency for DUM j in period t could be depicted as function (1):

(1)

Where, inputs are composed of xijt and yijt , DMUj at period t is set as the output, − + and silt represent slack variables, respectively, for and Z ijt is taken as links. sit− ,sit+ ,silt−1 input excess, output shortfall, link excess and link shortfall. Then, the technical efficiency (TE) can be decomposed into two parts of scale efficiency (SE) and pure technical efficiency (PuTE).

(2)

Based on the above functions, sources of catching-up effect could be decomposed by CU = TEC = PUTC ∗ SEC

(3)

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19

Then, the sources of frontier-shift effect is decomposed according to FS = DPC ∗ TPC

(4)

In general, the dynamic Malmqusit model could be rewritten as: M (x, y, z) = TEC · DTPC = SEC · PuTC · DTPC.

(5)

3 Results 3.1 Clustering of Rural Banking Performance We calculate the DSTFP of Chinese rural banks and their decomposed efficiency indexes. Then we incorporate hierarchical cluster analysis to classify the different characteristics of 30 provincial banks by SPSS. We use five decomposed efficiency indexes—DPC, SuEC, TPC, SEC and PuTC—to classify by Squared Euclidean Distance method. With these calculation results, we classify Chinese rural banks into 7 groups as shown in Fig. 1. According to the results of cluster analysis, as well as the decomposed efficiency of provincial rural banks in Chinese, special groups such as Group 4 and Group 6 are merged as traditional pure economic improved type (TPEI), and another newly merged group composed of Group 2, 5 and 7 as sustainable efficiency change improved type (SuECI). In this way, the empirical analysis of the work could be more realistic, for which performance of provincial rural banks in China can be distinguished into four types (Table 2).

Fig. 1. Dendrogram using average linkage.

Obviously, the type (III) rural banks perform better than banks of type (I) and (II). However, banks classified as type (III) have more implicit crisis than banks of type (I) and (II) from the view of sustainable development. Based on Boston matrix, the bank included in type (III) could be taken as cash cow, however, type (III) banks in rural areas are diverse. Hence, four types of rural banks performance are analyzed below.

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J. Wei Table 2. Four type of performance of Chinese rural banks.

NO

Abbreviation

Norm

(I)

DPCL

Dynamic progress limited type

(II)

SuTECL

Sustainable technical efficiency change limited type

(III)

TPEI

Traditional pure economic improved type

(IV)

SuECI

Sustainable efficiency change improved type

3.2 Performance of Type (I) Rural Banks in Inland Areas Most banks of type (I) are located in the inland regions of China, whose performances are found seriously lagged behind other three types and DPC is the only barrier constraining the performance. From the view of profit only, TPC increases banks’ productivity and PuTC is on the efficient frontier, which reflect that input-output allocations are impelling. On the contrary, the undesirable outputs and links are ineffective, which reflects the facts that those rural banks are aiming at short-run profit pursuing and ignoring long-run profit from the sustainable development viewpoint. Rural banks in Gansu province, shown in Table 3, have effective indexes marks of pure profit indexes, while from the point of sustainable development its performance could rank the top seven of China. That fact means that taking sustainable method into the consideration of estimating performance makes greater advantages. Hence, though performance of banks of type (I) lags behind the other banks, the only barrier is found. Table 3. Decomposed efficiency indexes of DPCL. Inland

DSTFP

SuEC

PuTC

SEC

DPC

TPC

Yunnan

0.99

1.00

1

1

0.89

1.12

Hebei

1

1

1

1

0.93

1.07

Zhejiang

1

1

1

1

0.92

1.09

Qinghai

1.07

1

1

1.04

0.84

1.23

Ningxia

1.07

1

1

1

0.86

1.25

Guizhou

1.10

1

1

1

0.82

1.35

Hainan

1.30

1

1

1.27

0.99

1.03

Gansu

1.54

1.23

1

1.04

0.93

1.29

3.3 Performance of Type (II) Rural Banks in Coastal Areas Rural banks of type (II) including seven provinces locate in the coastal area of the eastern,whose performances are relatively weak and are ranked in the bottom half of China. However, banks in Shanxi province are exceptions for its geographic location.

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For all the type (II) rural banks of this research, TPC is the only benefit feature, PuTC is lower and the feature of medium below SuEC limits rural banks’ productivity growth. Those findings tell that local developed economy are important driving forces to improve banking performance. However, allocation of inputs and desirable outputs loses the customary advantage in the eastern are, which means ignoring the basic control is great challenge to this type of banks. Table 4. Decomposed efficiency indexes of SuTECL. Coastal

DSTFP

SuEC

PuTC

SEC

DPC

TPC

Guangdong

0.98

1.00

1.00

0.80

0.90

1.36

Jiangsu

1.15

0.97

0.92

1.00

0.87

1.49

Shanxi

1.17

0.80

0.98

0.98

0.98

1.54

Jiangxi

1.18

1.08

0.83

0.99

0.92

1.43

Tianjin

1.26

1.00

1.00

1.00

0.77

1.64

Shandong

1.27

1.00

1.00

0.87

0.93

1.58

Anhui

1.37

1.00

0.97

0.98

1.01

1.44

Fujian

1.40

0.79

1.17

1.07

0.93

1.53

Anhui rural banks of type (II) are the only represent that the DPC is higher than 1.0 and is effective (shown in Table 4). From pure profit view, banks in Anhui province are not effective since they focus on a sustainable development path. Hence, the control of undesirable output and links betters the performance. Even though rural banks in Anhui province of type (II) is performed lower than banks in Fujian Province, from the point of sustainable development, efficiency change of banks in Anhui will exceeds Fujian’s banks in the near future. 3.4 Performance of Type (III) Rural Banks in Central Regions Rural banks included in type (III) are distributed in the region of the northern part and central part of China, compound of five provinces. Hubei rural banks and Hunan rural banks are also belonged to this type (shown in Table 6). These banks have features of higher performances and relative smooth fluctuation, whose DPC is lower and the performances of PuTC and TPC improve together. That facts implicit that advantages are obtained by these banks with a purely technical development path and the performances are in the leading position among Chinese rural banks. However, a series of downsides are obvious that if the short-run profit is kept to pursue, performance of this kind of bank will not be well kept. Its predominance if it continues to pursue short-term profit (Table 5). The number of rural banks classed in TPEI occupied almost 1/3 of 30 banks in China. From the sustainable viewpoint, rural banks distributed in Xinjiang, Liaoning and Jilin provinces are effective, which means that these banks have always been pursuing to develop a sustainable path, especially in the operations of deposit and control of

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J. Wei Table 5. Decomposed efficiency indexes of DPCL.

Central

DSTFP

SuEC

PuTC

SEC

DPC

TPC

Guangxi

1.37

0.92

1.33

1.00

0.87

1.30

Jili

1.43

1.01

1.32

0.91

0.90

1.32

Shanxi

1.47

0.96

1.16

1.01

0.92

1.41

Liaoning

1.49

1.12

1.27

0.80

0.82

1.60

Hunan

1.50

0.97

1.19

0.96

0.89

1.51

Inner Mongolia

1.52

0.94

1.38

1.03

0.89

1.28

Xinjiang

1.57

1.09

1.20

0.93

0.91

1.41

Heilongjiang

1.58

0.97

1.25

1.00

0.88

1.50

Hubei

1.66

0.90

1.55

0.93

0.89

1.44

Sichuan

1.96

0.89

1.86

0.94

0.92

1.37

NPLR. Hence, if rural banks gradually transfer their focuses to sustainable development mode, the performance will be better and the leading position of China banking will be outstanding. 3.5 Performance of Type (IV) Rural Banks in Municipality Regions For the type (IV) Rural Banks, including banks in Henan, Chongqing, Beijing and Shanghai, the advantage of being new, have benefited along with the local economic development and obtain advantages from pursuing sustainable development path (shown in Table 6). Table 6. Decomposed efficiency indexes of DPCL. Municipality

DSTFP

SuEC

PuTC

SEC

DPC

TPC

Chongqing

0.78

1.30

0.70

0.76

1.02

1.10

Beijing

1.13

1.31

0.76

1.00

0.71

1.58

Shanghai

1.64

1.32

0.97

0.87

0.95

1.55

Henan

2.29

1.40

1.60

0.79

0.87

1.50

Chongqing is the youngest municipality region in China, for which the score of the index DSTFP is the lowest. It mainly rooted in its relatively low profit efficiency. And the advantages of scroll of deposit and the control on NPLR are out of standing in rural banks in China. That means challenges and opportunities at the same time. Rural banks located in Beijing and Shanghai have strong economic backgrounds supporting better performances of rural banks. However, the control of deposit is the downside of these rural banks, especially banks in Beijing city. The drawback means sustainable

Sustainable Performance of Rural Banking

23

development requires a qualitative leap after quantity accumulates. Otherwise, it is difficult to continue performance improvements. From the viewpoints of both sustainable development and allocation features, performances of banks in Henan province are the best, which verifies that banks in Henan seize opportunities even if they don’t have strong economic support. Therefore, incorporating sustainable methods into bettering performance management could higher the productivity growth greatly.

4 Conclusions This paper has incorporated carry-over activities and negative externality effects into traditional MPI to consider how sustainable dynamic productivity growth can be estimated. To handle it, we introduce a definition of links and a definition of undesirable output to traditional Malmquist Index for measuring productivity growth over time. An application to a Chinese rural bank’s performance shows that the traditional MPI produces misleading results; however, the DSMPI model solved this problem and produced reliable results. The DSMPI model results on the Chinese rural banks are categorized into four groups based on hierarchical cluster analysis: DPCL, SuTECL, TPEI and SuECI. Some interesting findings about the productivity growth of each type of the Chinese rural banks are summarized, such as SuECI are the stars and are worth following; TPEI has potential dangers. The reason is that though this type banks have good profit performance, they have bad performance in the undesirable output (NPLR) evaluation.

References Akber, S., Desheng, W., Vladmir, K.: Are sustainable banks efficient and productive? A data envelopment analysis and the Malmquist productivity index analysis. Sustainability 11(8), 2398 (2019) Fukuyama, H., Weber, W.L.: A slacks-based inefficiency measure for a two-stage system with bad outputs. Omega 38, 398–409 (2010) Paradi, J.C., Rouatt, S., Zhu, H.: Two-stage evaluation of bank branch efficiency using data envelopment analysis. Omega 39, 99–109 (2011) Jiang, H., He, Y.: Applying data envelopment analysis in measuring the efficiency of Chinese listed banks in the context of macroprudential framework. Mathematics 6(10), 184 (2018) Tone, K., Tsutsui, M.: Dynamic DEA: a slacks-based measure approach. Omega 38, 145–156 (2010) Li, W., Hilmola, O.P.: Belt and road initiative and railway sector efficiency-application of networked benchmarking analysis. Sustainability 11(7), 2070 (2019) Lim, Y.K., Cho, S.J., Min, S., Park, J.H., Park, S.H.: The differential effect of ego-resiliency on the relationship between emotional labor and salivary cortisol level in bank clerks. Int. J. Environ. Res. Public Health 15, 2576 (2018) Bolt, W., Humphrey, D.: Bank competition efficiency in Europe: a frontier approach. J. Bank Financ. 8, 1808–1817 (2010) Cooper, W.W., Ruefli, T.W., Deng, H., Wu, J., Zhang, Z.: Are state-owned banks less efficient? A long- vs short-run data envelopment analysis of Chinese banks. Int. J. Oper. Res. 3, 533–556 (2008)

Research on the Influence of New Energy Vehicles Industry Eco-business Model on Brand Competitiveness Qianyu Mao1(B) , Ruiyang Wang1 , and Zhen Li2 1 School of Science, Beijing Jiaotong University, Beijing, China 2 School of Economics and Management, Beijing Jiaotong University, Beijing, China

[email protected]

Abstract. New energy vehicles industry is one of seven strategic emerging industries in China, how to develop new energy vehicles industry effectively is critical for China’s new energy vehicle industry to overtake other competitors. Under the background of cloud economy, the organizational form and business model of new energy vehicles industry has changed a lot, the emergence of value ecosystem and eco-business model provide a new perspective and transformation direction for the development of new energy vehicles industry. Based on the theory of value ecosystem, this paper studies the influential mechanism of the eco-business model on brand competitiveness. The results show that the competitive advantage of new energy vehicle eco-business model has a significant positive impact on brand competitiveness, customer perceived value plays an intermediary role between the competitive advantage of new energy vehicle eco-business model and brand competitiveness, the expansion of value ecosystem is able to positively regulate the relationship between the competitive advantage of new energy vehicle ecobusiness model and customer perceived value, but is not able to regulate the relationship between the competitive advantage of new energy vehicle eco-business model and brand competitiveness. The research results provide new ideas for new energy vehicle enterprises to enhance brand competitiveness, and also provide important implications for the management of new energy vehicle eco-business model. Keywords: New energy vehicles · Eco-business model · Brand competitiveness

1 Introduction With the rapid growth of the global economy, the coordinated development of human and environment has been drawing global attention. Carbon dioxide emission has been proved to be the main source of greenhouse effect, which will cause climate change, land drought, global warming and sea level rise problems, and will pose great threats to the living environment and social development of human beings. How to deal with the challenges brought by global warming has become one of the hottest issues concerned by countries around the world. In order to deal with the problem of greenhouse effect, © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, pp. 24–36, 2022. https://doi.org/10.1007/978-981-16-8660-3_4

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as the largest carbon emitter in the world, China has committed that, before or by the year of 2030, China will strive to peak carbon emissions and increased the proportion of non-fossil energy in primary energy consumption areas by about 20%. Transportation industry is the second largest carbon dioxide emission industry after electricity industry [1]. According to the statistics of the traffic administration of the Ministry of public security, by the year of 2020, China’s car ownership has reached 250 million, which is expected to surpass the United States in 2020 and reach the first place in the world. The rapid growth of car ownership has caused severe pollution problems to China’s environment. In order to reduce carbon dioxide emissions and mitigate the climate change problem caused by carbon emissions, major developed countries in the world have clearly announced the fuel vehicle ban schedule recently, for instance, Germany, Britain, France, Norway will implement a complete ban on traditional fuel vehicles around 2030. In order to realize the transformation and upgrading of the traditional automobile industry and alleviate the environmental problems caused by carbon dioxide emissions, China’s government has also accelerated the development speed of new energy vehicles industry. Under such background, China’s new energy vehicle industry has achieved rapid development recent years. From 2015 to 2020, the production and sales volume of China’s new energy vehicles ranked first in the world for five consecutive years. In 2020, the number of new energy vehicles in China reached 3.81 million, accounting for 50% of the global market, which initially realize the goal of seizing the niche of global market. The dwindling subsidies take shine off new energy vehicles industry and force the industry to accelerate to market-oriented development. Recent years, with the support of government subsidies, China has seen a rapid growth in new energy automobile industry. After obtaining industrial volume and realizing market cultivation, China has clearly announced and implemented policies to fade out its generous subsidies for new energy vehicles, and since then, the development of China’s new energy automobile industry also changed from policy driven to market driven. In this critical transition period, how to layout the future market for new energy vehicles enterprises under dwindling subsidies has become a key focus of the industry. Due to the problems of insufficient technology accumulation time, immature key technology and high manufacturing cost, the price of one new energy vehicle is much higher than a traditional fuel vehicle under the same level of performance and user experience. Therefore, it’s impossible for new energy vehicles to compet with traditional vehicles in terms of price, which in turn, calls for new energy vehicles firms to excavate reasonable business models catering to the market and consumers, so as to let the industry get rid of the excessive reliance on government subsidies. Thus, a reasonable business model is one of major problems which the new energy automobile industry concern about. With the development of the economy and the continuous improvement of people’s living standards, the requirements of customers on product brand have higher. The competition among enterprises also changes from price competition to brand competition [2]. Brand competitiveness is able to make enterprises to obtain sustainable profitability, and the brand premium ability also enables enterprises to obtain excess profits at a higher price and realize brand premium. Due to the high manufacturing cost, it’s hard for new

26

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energy vehicles firms to realize the low-price competitiveness strategy temporarily, thus how to build a brand, enhance brand awareness and brand competitiveness has become an important task in the marketing process of new energy vehicle enterprises. Recently, Mercedes Benz, Audi, Weilai and BAIC have all laid out future automobile industry by building an eco-business model. Therefore, the study on the influence and mechanism of new energy vehicles eco-business model on brand competitiveness is able to provide meaningful reference for the management of new energy vehicles enterprises’ eco-business model in the future.

2 Theoretical Review and Hypothesis Presentation 2.1 Value Ecosystem The development of value creation theory has mainly gone through several processes from “value chain” to “virtual value chain”, “value information” and “value network”, and now it has developed into a new stage of value ecosystem theory. Value ecosystem is a new form of industrial organization, it refers to an industrial organization with the characteristics of ecosystem and the support of surrounding environment, and such organization is able to attract consumers to enter and inhabit in the value ecosystem through meeting consumers’ transaction, social and entertainment needs. Value ecosystem is usually constructed, maintained and controlled by a central enterprise. The central enterprise of the value ecosystem attracts customers as much as possible by building habitats that is able to meet customers’ material and spiritual needs. What’s more, value ecosystem can nurture value communities and analyses the big data extracted from the value communities to further optimize customer experience, improve customer habitat, extend customer habitat time, expand value-added business and obtain profits. Therefore, the central enterprise, value communities and surrounding environment form a reciprocal, sharing and virtuous circle, which is value ecosystem. 2.2 The Impact of New Energy Vehicles Eco-business Model Competitive Advantage on Brand Competitiveness The study of this paper is based on the judgment that the influence of business model on brand competitiveness is very important [3, 4]. The essence of business model is the collection of a series of value activities of an enterprise [5–7]. According to the value theory, business model includes four aspects: value proposition, value creation, value acquisition and value maintenance [8]. The value ecosystem of new energy vehicles enterprises initially originated from the trading platform of enterprises and customers. The development of trading platform has a long history and as the development of market economy, some trading platforms has shown the characteristics of ecosystem. Therefore, the platform is the prototype of the value ecosystem of new energy vehicle enterprises. Value ecosystem is a higher level organizational form of platform and eco-business model is the internal operation mechanism of this kind of organization. Under the theory of value ecosystem, new energy vehicles enterprises build an “Online + offline” customer habitat for consumers to maximize the brand experience through

Research on the Influence of New Energy Vehicles Industry

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establishing value ecosystem. These companies use big data to transform the customer behavior information into accurate user portraits, so as to provide customers with perfect products and services that can meet their personalized needs and attract more potential customers to enter and inhabit at the value ecosystem. This kind of three-dimensional structure value creation activity based on “big data + product + service” is able to make consumers establish a comparative brand advantage from the perspective of psychological perception, and ultimately guide these customers to purchase the products and services from the companies. Furthermore, this kind of brand competitive advantage is able to form brand competitiveness. Based on the research conclusions and theoretical deduction above, this study proposes that: H1: The competitive advantage of new energy vehicles eco-business model has a significant positive effect on the company’s brand competitiveness. 2.3 The Mediation Effect of Customers Perceived Value The evaluation of competitive advantage of business model often depends on customer perceived value. Timothy Keiningham believes that companies are able to respond to customer’s perceived value, and improve the quality of the products and services to meet customers’ expected value through analyzing their feedbacks on the competitive advantage of business model [9]. Patrick Spieth studies the relationship between the competitive advantage of business model and customer perceived value of industrial enterprises, Patrick Spieth divides business model advantages into value proposition advantages, mechanism creation advantages and value acquisition advantages, Patrick then studies the influence of these three dimensions on brand trust through the mediation variables of customer perceived value [10]. Using Rolls Royce automobile manufacturers as research background, Emprechtinger studies the relationship between the competitive advantage of its business model and the customer perceived value, Emprechtinger found that the positive effect between the business model competitive advantage and customer perceived value of Rolls Royce can effectively enhance its brand competitiveness [11]. Therefore, companies are able to design competitive products and services through value creation activities within business model, and customers will personally judge the competitive advantage of such business model in terms of their own mentalities [12]. Specifically, consumers will judge the value created by companies’ value activities through customer perceived value. When consumers feel that the value created by companies can meet their psychological needs, they tend to identify with the brand value. When consumers feel that the value created by companies cannot meet their psychological needs, they will reduce their recognition of the brand. According to the analysis above, this study proposes that: H2: The competitive advantage of new energy vehicle eco- business model has a significant positive effect on customer perceived value. The improvement of customer perceived value can increase the perceived utility, satisfaction, honor and recognition of the products, information and services provided by the company [13]. Customers’ perception and recognition of the value created by

28

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the enterprise will produce word-of- mouth effect. When consumers feel satisfied with the value created by the enterprise, they will consciously promote the brand [14]. Relevant research shows that the word-of-mouth effect caused by the increase of customer perceived value can improve the brand’s popularity, brand recommendation, brand reputation and brand market competitiveness, which will establish a kind of comparative advantage about the brand in term of consumers’ psychological perception, so as to guide customers to buy their products and services and improve the brand competitiveness. According to the studies above, this paper proposes that: H3: Customer perceived value has a significant positive effect on brand competitiveness. The problem of customer uncertainty needs to be solved in the process of transforming the value creation activities of a brand business model into brand competitiveness, this uncertainty comes from whether the brand’s new product and service performance can meet consumers’ psychological expectations [15], and this psychological expectation is realized through customer perceived value [16]. When the brand’s business model value creation activities can meet the needs of consumers, this business model competitive advantage can produce a sense of emotional reliability and functional compatibility for the brand in consumers’ mentality, which can reduce the uncertainty of customers’ purchasing behaviors, guide the customers to buy the brand’s products or services, and increase the trust and reputation between customers and the brand to strengthen the brand’s competitiveness. According to the studies above, this paper proposes that: H4: Customer perceived value plays a mediation effect between the competitive advantage of new energy vehicle eco-business model and brand competitiveness. 2.4 The Moderating Effect of Value Ecosystem Expansion According to the strategic flexibility theory and customer perceived value theory, the expansion of an enterprise is not able to affect its brand competitiveness directly. Joo & Shin’s research finds that the matching between enterprise value activities and customer perceived value is very important in the process of value ecosystem expansion [17]. Williams’ research shows that the satisfaction of customer perceived value is the main purpose and the most important factor for organizational expansion [18], in addition, William finds that, through investment, M & A and strategic cooperation, the organization can meet the customer perceived value during the interaction process between the organization and customers to improve the brand competitiveness of enterprises [19]. What’s more, according to the organizational learning theory, enterprises are able to learn from other organizations in the environment, continuously acquire various resources and capabilities needed for the future competition, therefore, these companies can form a competitive advantage system through updating, optimizing and expanding their original resources, capabilities and businesses. The existing research have shown that the absorption, integration and expansion capabilities of enterprises are able to change the value creation process and reshape the business model competitive advantage of these enterprises. Besides, the business model competitive advantage can only be

Research on the Influence of New Energy Vehicles Industry

29

transformed into brand competitiveness when the enterprises have absorption, integration and expansion capabilities. In the value ecosystem, the expansion ability of each system is quite different. When the value ecosystem has strong expansion capability, this capability is able to adjust the relationship between the eco-business model competitive advantage and the customer perceived value, besides it can also adjust the relationship between the eco-business model competitive advantage and brand competitiveness. Through mutual benefit and symbiosis, and the extensive integration of complementary resources within the market, the central enterprises can expand the ecosystem boundary, enhance the vitality of value creation activities within eco-business model, and expand the value acquisition sources to provide customers with more diversified value-added products and services that can meet their personalized needs, enhance customer perceived value and brand competitiveness. To sum up, this study proposes: H5: The value ecosystem expansion has a moderating effect between the new energy vehicles eco-business model competitive advantage and customer perceived value. H6: The value ecosystem expansion has a moderating effect between the new energy vehicles eco-business model competitive advantage and brand competitiveness. H7: The moderating effect of value ecosystem expansion between the new energy vehicle eco-business model competitive advantage and brand competitiveness is realized through the mediation effect of customer perceived value. According to the analysis above, the theoretical model established in this paper is shown in Fig. 1:

Fig. 1. The theoretical model

3 Research Design 3.1 Value Ecosystem The research object in this study are the consumers of new energy vehicle enterprises which implement the eco-business model. The researchers used three weeks to carry out the questionnaire survey, and issued 700 questionnaires in total to the consumer groups of 20 new energy vehicles enterprises, with 624 valid questionnaires collected, and the valid questionnaire collection rate is 89.1%. The descriptive statistical analysis shows that 62.9% of the valid samples are men and 37.1% are women; the number

30

Q. Mao et al.

of consumers under 25 years old, 26–35 years old and over 35 years old accounted for 19.3%, 58.5% and 22.3% of the number respectively; the number of consumers of state-owned enterprises is 63.3% and the number of non-state-owned enterprises is 36.7%; 25.4% of the consumers hold bachelor’s degree or below, 43.6% of the consumers hold bachelor’s degree, 22.7% of the consumers hold master degree, and 8.3% of the consumers hold doctor’s degree or above. 3.2 Measuring Tool In order to ensure the measurement validity of the variables, this paper improves the existing scale through pre investigation to make the scale more suitable for the market environment of new energy vehicles in China. All variables in this paper adopt Likert seven-point scale, in which “1” stands for “strongly disagree”, “7” stands for “strongly agree”. The new energy vehicles eco-business model competitive advantage measurement scale has 19 questions, and it is designed with reference to the existing scale developed by Patrick Spieth. The representative question include “You are willing to accept the push information that the brand send to you”. The measurement scale of customer perceived value has 13 questions, and it is designed with reference to the scale developed by Fan Xiucheng. The representative question include “The products and services provided by the brand can improve your social image”. The measurement scale of value ecosystem expansion has 8 questions, and it is designed with reference to the scale developed by Patrick spieth. The representative question include “the brand has strong resource integration capability”. The measurement scale of brand competitiveness has 14 questions, and it is designed with reference to the scale developed by Li Haipen. The representative question include “the brand is well-known in the industry”. In addition, gender and enterprise attributes are listed as control variables in this study, among which “male” and “state-owned enterprise consumer” are coded as 0, and “female” and “non-state-owned enterprise consumer” are coded as 1. 3.3 Research Data Analysis 3.3.1 Reliability and Validity Test In order to ensure the scientificity of the research, this paper analyzes the reliability and validity of the sample through exploratory factor analysis and confirmatory factor analysis, and the verification results are shown in Table 1. The results pass the test with the KMO value of each latent variable between 0.819–0.873. The results show that the variables are suitable for factor analysis. The klenbach coefficient of each scale is between 0.841–0.875, which shows that each scale has good internal consistency, and the CR coefficient is between 0.892–0.906, which indicates that each scale has a good combination reliability. The average value of AVE is 0.571–0.732, which is higher than 0.5, indicating that each scale has good convergence validity. In addition, the factor load coefficient of each measurement index is greater than 0.5, indicating that the measurement index converges to the latent variable (Table 2).

Research on the Influence of New Energy Vehicles Industry

31

Table 1. The exploratory factor analysis and confirmatory factor analysis results Variables

α

KMO

AVE

CR

NC

0.875

0.864

0.724

0.906

BC

0.856

0.819

0.715

0.892

VE

0.841

0.822

0.693

0.885

CP

0.862

0.873

0.729

0.894

Note: NC stands for competitive advantage of new energy vehicle eco-business model, BC stands for brand competitiveness, VE stands for value expansion, and CP stands for customer perceived value. Table 2. Differential validity EST: Pearson correlation and AVE root value Variables

NC

NC

0.851

BC

VE

BC

0.674**

VE

0.052

0.021

0.833

CP

0.703**

0.675**

0.014

CP

0.846 0.854

Note: The diagonal value is the square root of AVE value, and the lower triangle area is the Pearson correlation coefficient among variables; ** represents P < 0.01, * represents P < 0.05.

3.3.2 Descriptive Statistics and Pearson Correlation Analysis In order to verify the hypothesis proposed above, this paper conducts Pearson correlation analysis for the research variables, and the analysis results are shown in Table 3. The results of Pearson correlation analysis show that the new energy vehicles eco-business model competitive advantage a significant positive effect on brand competitiveness(r = 0.674, p < 0.01), the new energy vehicles eco-business model competitive advantage a significant positive effect on customer perceived value(r = 0.703, p < 0.01), and the customer perceived value has a significant positive effect on brand competitiveness (r = 0.675, P < 0.01). Therefore, the hypothesis H1, H2 and H3 have been preliminarily verified. Table 3. Descriptive statistics and Pearson correlation analysis results Var.

1NC

2BC

NC

1.0

BC

0.67**

1.0*

VE

0.69**

0.63**

3VE

4CP

5EA

6GE

1.0* (continued)

32

Q. Mao et al. Table 3. (continued)

Var.

1NC

2BC

3VE

4CP

5EA

6GE

CP

0.70**

0.68**

0.65*

1.0*

EA

−0.05

0.13**

0.10

0.47

1.0*

GE

−0.08

0.04

0.002

0.003

0.02

1.0*

AVG

5.64

5.80

5.62

5.76

1.15

0.85

S.D

0.86

0.80

0.79

0.84

0.48

0.51

Note: NC stands for the new energy vehicle eco-business model competitive advantage, BC stands for brand competitiveness, VE stands for value ecosystem expansion, CP stands for customer perceived value, EA (enterprise attribute) and GE (gender) are the control variables. **means P < 0.01, *means P < 0.05

3.3.3 The Regression Analysis In order to prevent multicollinearity problem within variables, this paper tests the VIF value of variables. The test results show that the VIF value is less than 2.5, indicating that there is no multicollinearity problem in the model. After that, this paper uses hierarchical regression analysis to test the research hypothesis, and the test results are shown in Table 4. The results show that the new energy vehicles eco-business model competitive advantage has a significant positive impact on both customer perceived value and brand competitiveness. In addition, customer perceived value has a significant positive impact on brand competitiveness, therefore, the testing results further support the hypothesis H1, H2, H3 once again. Then, when the mediation variable customer perceived value is Table 4. The results of hierarchical regression analysis Varia les

CP

BC

M1

M2

M3

M4

M5

EA

0.422

0.394

0.417

0.406

0.420

0.435

GE

0.231

0.207

0.187

0.192

0.199

0.214

NC

0.433***

0.418***

0.452***

0.424

CP VE

0.207**

0.073

NC*V E

0.194***

0.215

M6

0.357** 0.393***

0.378***

R2

0.147

0.182

0.169

0.177

0.274

0.291

R2

0.153

0.143

0.169

0.093

0.274

0.165

F

6.328***

4.591**

6.684***

4.549

9.837***

13.246***

Note: EA stands for enterprises attribute, GE stands for consumers gender, NC stands for competitive advantage of new energy vehicle eco-business model, CP stands for customer perceived value, VE stands for value expansion, ***means P < 0.001, **means P < 0.01, *means P < 0.05

Research on the Influence of New Energy Vehicles Industry

33

added into the model, the impact of new energy vehicle eco-business model competitive advantage on brand competitiveness is still significant, and the mediation effect of customer perceived value is still significant, which supports the hypothesis H4. In order to verify if the moderation effect exists, the research variables were centralized to unify the quantitative relationship among variables, after controlling consumers’ gender and enterprise attribute and other demographic variables, this paper establishes the interaction term by using the new energy vehicle eco-business model competitive advantage and the value ecosystem expansion, besides this paper uses brand competitiveness as dependent variable and then substitute these variables into regression model to test the moderation effect of value ecosystem expansion of value ecosystem. The results show that the interaction between the new energy vehicle eco-business model competitive advantage and the value ecosystem expansion has a significant positive impact on customer perceived value (β = 0.171, p < 0.001), therefore, the results support hypothesis H6. 3.3.4 The Mediated Moderation Effect Analysis According to Hayes test, this paper uses SPSS Process to test the mediated moderating effect. This study first uses Bootstrap to verify whether the mediation effect of customer perceived value exist through analyzing if the product of the regression coefficient between new energy vehicle eco- business model competitive advantage and the customer perceived value and the regression coefficient between customer perceived value and brand competitiveness is significantly not zero. In this paper, 1000 repeated sampling were set up to construct a 95% deviation correction confidence interval. The testing results show that the mediation effect of new energy vehicle eco-business model competitive advantage on brand competitiveness through customer perceived value is 0.097, and the confidence interval [0.031, 0.185], excluding zero, thus the mediation effect of customer perceived value is significant. In addition, by using Process test, a group of high value variables and a group of low value variables are obtained by adding and subtracting a standard deviation from the mean value of moderation variable of value ecosystem expansion, the testing results are shown in Table 5. According to the results, the indirect effect for the value ecosystem with strong expansion capacity is 0.003, the confidence interval is [–0.074, 0.102], and it contains zero meaning it is not significant; the indirect effect for the value ecosystem with weak expansion capacity is 0.199, the confidence interval is [–0.074, 0.102], and it doesn’t contain zero meaning it is significant; Therefore, the expansion of value ecosystem can significantly moderate the mediation effect intensity of customer perceived value between the new energy vehicle eco-business model competitive advantage and brand competitiveness, which means when the value ecosystem has strong expansion capability, the mediation effect of customer perceived value is stronger, on the contrary, the mediation effect of customer perceived value is weaker, so the results support hypothesis H7.

34

Q. Mao et al. Table 5. The test for mediation effect and mediated moderating effect

Mediating effect Conditional indirect effect Low value

Effect

S.D

Confidence interval

0.097

0.049

[0.031, 0.185]

0.003

0.098

[–0.074, 0.102]

0.199

0.062

[0.107, 0.513]

4 Conclusion and Enlightenment 4.1 Main Conclusions Based on the value ecosystem theory, this paper studies the influence of new energy vehicles eco-business model competitive advantage on brand competitiveness, and analyzes the mechanism of customer perceived value and value ecosystem expansion during the influential process. The results of this study show that a. The new energy vehicles ecobusiness model can significantly enhance the brand competitiveness. b. The customer perceived value has mediation effect between the new energy vehicles eco- business model competitive advantage and brand competitiveness. c. The expansion of value ecosystem can positively moderate the relationship between the new energy vehicles eco-business model competitive advantage and customer perceived value, which is to say, strong value ecosystem expansion capability is able to strengthen the positive effect between the new energy vehicles eco-business model competitive advantage o and customer perceived value. d. The expansion of value ecosystem cannot directly moderate the relationship between the new energy vehicles eco-business model competitive advantage and brand competitiveness, in other words, the expansion of value ecosystem cannot significantly enhance or weaken the relationship between the new energy vehicle eco business model competitive advantage and brand competitiveness. e. The moderation effect of value ecosystem expansion on the competitive advantage and brand competitiveness of new energy vehicle eco business model needs to be realized through the mediation effect of customer perceived value, which is to say, strong value ecosystem expansion capability can strengthen the positive effect of new energy vehicle eco-business model on customer perceived price value, and thus it is conducive for enhancing the brand competitiveness. 4.2 Management Enlightenment a) The enterprise managers should fully realize that the construction of new energy vehicle eco-business model has an important positive effect in promoting the brand competitiveness. It’s important for the enterprises to use “big data + cloud computing” to ensure their value proposition can meet the personalized needs of the consumers, and to change the traditional value creation process which mainly focused on automobile manufacturing. It’s also important for the new energy vehicle enterprises to pay more attention to the value acquisition activities in the service fields, and attach greater importance on value maintenance activities to enhance the depth and breadth of customer embeddedness for improving the operation capability of the value activities effectively.

Research on the Influence of New Energy Vehicles Industry

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The above measures can play a positive role in promoting brand competitiveness. b) This paper finds that, as an important mediation variable, customer perceived value has mediation effect between the new energy vehicle eco-business model competitive advantage and brand competitiveness. In terms of this discovery, managers of automobile enterprises should pay attention to the fact that the pure competitive advantage of the eco-business model cannot enhance the brand competitiveness directly. New energy vehicle enterprises need to make the value creation activities conform to the expectations of customers, improve the safety, comfort and the after-sales service of the products to enhance the perceived value of customers, thus to further enhance the brand competitiveness indirectly. c) This paper finds that the expansion of value ecosystem can positively moderate the relationship between the competitive advantage of new energy vehicle eco-business model and the brand competitiveness. In terms of this discovery, managers of new energy vehicle enterprises should pay attention to conduct appropriate cross-border integration and expansion with open mind and inclusive mentality, this will help enterprises to integrate the complementary resources in the value ecosystem effectively, attract more customers to inhabit in the ecosystem, and transform the advantage of customer scale into healthy, sustainable profitability and brand competitiveness during the process of value ecosystem expanding. 4.3 Research Limitations and Future Research Directions Although to some extent the topic of this paper are innovative and significant, there are still some shortcomings which need to be addressed in the future. Due to the large number of new energy vehicle enterprises in the market, it is quite difficult to collect the sample data, although this paper has invested a lot of time on data collection, we still can’t get a fully comprehensive survey information of all of the new energy vehicles consumers. Future studies can focus on expanding the coverage of research samples to improve validity of current results. What’s more, because of the weaknesses of structural equation model, we can only find out whether there is a significant influential relationship within variables, but we cannot find out how theses influential relationships will change over time, future studies can use system dynamics model to simulate and show how these influential relationships will change over time. Acknowledgment. This paper was supported by the key project of China’s National Social Science Foundation (Project no. 16AGL004).

References 1. Global EV outlook 2020: Two million and counting (June 2020). https://www.iea.org/public ations/freepublications/publication/GlobalEVOutlook2020.pdf 2. Brian, J.B., Clay, V., Roger, C.: Online brand community engagement: Scale development and validation. J. Bus. Res. 68, 978–985 (2015) 3. Baden-Fuller, C., Mangematin, V.: Business models: A challenging agenda. Strateg. Organ. 11, 418–427 (2013)

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4. Frankenberger, K., Weiblen, T., Gassmann, O.: Network configuration, customer centricity, and performance of open business models: a solution provider perspective. Ind. Mark. Manage. 42, 671–682 (2013) 5. Spieth, P., Roeth, T., Meissner, S.: Reinventing a business model in industrial networks: Implications for customers’ brand perceptions. Ind. Mark. Manage. 83, 275–287 (2019) 6. Business - Business and the Environment: Findings from University of Durham Yields New Findings on Business and the Environment (Turning Motivation Into Action: a Strategic Orientation Model for Green Supply Chain Management). Ecology Environment and Conservation, p. 277 (2020) 7. Wang, S.: Research on design method of energy internet business model. IOP Conf. Ser. Earth Environ. Sci. 657(1), 012054 (2021) 8. Shafer, S.M., Smith, H.J., Linder, J.C.: The power of business models. Bus. Horiz. 48, 199–207 (2005) 9. Timothy, K., Lerzan, A., Helen, L., et al.: Customer experience driven business model Innovation. J. Bus. Res. In Press, Corrected Proof (2019) 10. Spieth, P., Schneider, S., Clauß, T., Eichenberg, D.: Value drivers of social businesses: a business model perspective. Long Range Plann. 52, 427–444 (2019) 11. Emprechtinger, F.: 3 Famous Business Model Innovations and What You Can Learn from Them, LEAD Innovation Management Blog (2018). https://www.lead-innovation.com/Eng lish-blog/famous-business-model-innovations 12. Park, C.S., Srinivasan, V.: A survey-based method for measuring and understanding brand equity and its extendibility. J. Mark. Res. 31, 271–288 (1994) 13. Adeinat, I., Kassim, N.: Extending the service profit chain: the mediating effect of employee productivity. Int. J. Qual. Reliab. Manage. 36(5), 797–814 (2019) 14. Heidenreich, S., Spieth, P., Petschnig, M.: Ready, steady, green: examining the effectiveness of external policies to enhance the adoption of eco-friendly innovations. J. Prod. Innov. Manage. 34, 343–359 (2017) 15. Omar, S.I., Kassar, A.N., Sandra, M.C.L.: Value get, value give: The relationships among perceived value, relationship quality, customer engagement, and value consciousness. Int. J. Hosp. Manage. 80, 78–90 (2019) 16. Joo, J., Shin, M.M.: Moderating effects of online platform business ecosystems between customer participation and psychological ownership: aA comparison of Kakao and Facebook ecosystems. J. Inf. Syst. 25, 75–104 (2016) 17. Williams, B.: The defensive expansion approach to multinational banking: evidence to date. Financ. Mark. Inst. Instrum. 11, 127–203 (2002) 18. Joo, J., Shin, M.M.: Building sustainable business ecosystems through customer participation: a lesson from South Korean cases. Asia Pacific Manage. Rev. S102931321530049X (2017) 19. Janaina, R.T., Wesley, M.C.D., Levinthal, A.: Absorptive capacity: a new perspective on learning and innovation. Revista Brasileira de Inovação 8(2), 273–301 (2009)

Equity Diversification and Capital Allocation Efficiency: Evidence from China’s Mixed Ownership Reform Qi Wang(B) and Zhong Ma School of Economics and Management, Beijing Jiaotong University, Beijing, People’s Republic of China [email protected]

Abstract. This study investigates the impact of equity diversification on the efficiency of corporate capital allocation. Using A-share listed Chinese state-owned companies in 2009–2016, we empirically test the relationship between equity diversification and capital allocation efficiency and find that introducing non-state capital into state-owned enterprises can significantly improve the efficiency of state-owned enterprises’ capital allocation. We use China’s “mixed ownership reform” to construct a DID model to overcome the endogenous problem. Further tests show that the higher the participation of non-state shareholders, the more efficient the capital allocation of state-owned enterprises. Our results provide evidence for China’s State-owned enterprise reform. Keywords: Equity diversification · Capital allocation efficiency · Mixed ownership reform

1 Introduction The influence of the ownership structure on the company’s value and the efficiency of resource allocation has always been a basic concern of corporate financial theory. The ownership structure affects the company’s efficiency by triggering principal1 -agent issues. Traditional corporate governance research mainly focuses on the encroachment of shareholders’ interests by internal managers under the situation of dispersed equity. Concentration of equity has eased this type of agency problem to a certain extent, but at the same time it has caused a second type of agency problem, which is mainly manifested in the large shareholders infringing on company resources for their own interests and grabbing the interests of small shareholders. China’s state-owned enterprises naturally have a “dominant share” governance mechanism, and have been in an embarrassing situation of “ownership absence” and “unclear property rights” for a long time. This has caused state-owned enterprises to face a lack of effective supervision, outstanding entrustment and agency problems. Against this background, the Third Plenary Session of the Eighteenth Central Committee of the 1 We thank the Fundamental Research Funds for the Central Universities (No: 2020YJS068).

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, pp. 37–44, 2022. https://doi.org/10.1007/978-981-16-8660-3_5

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Communist Party of China proposed the reform direction of “encouraging the development of mixed-ownership enterprises.“ Many state-owned enterprises have introduced non-state shareholders such as private and foreign investors, forming a diversified shareholding structure. The adjustment of the ownership structure caused by the mixed ownership reform provides a suitable sample for our research. We explore the relationship between equity diversification and capital allocation efficiency to test whether equity diversification can improve the capital allocation efficiency. This study makes three contributions. First, this paper enriches the relevant research on the ownership structure and the efficiency of corporate capital allocation, and verifies the influence of the nature of equity shareholders on corporate governance effects. Second, this paper considers the endogeneity of the equity structure variables and overcomes the sample self-selection bias of previous studies. Finally, this paper provides policy recommendations with empirical research support for the reform of state-owned enterprises, and provides specific issues such as the “mixed effectiveness”, “how to mix”, and “how to govern after reform” of state-owned enterprise mixed ownership reform.

2 Literature Review and Hypothesis Development 2.1 The Impact of Ownership Structure on Corporate Efficiency Under the ownership structure of “one share dominates”, major shareholders will use their control rights to hollow out listed companies for their own interests (Jiang et al. 2010). Prior studies on the optimal shareholding structure of enterprises generally believe that the moderate concentration of shareholding structure and the existence of counterbalanced shareholders can effectively restrain major shareholders’ infringement of the interests of the company and other shareholders. The “nature” of shareholders is a very important factor that affects the corporate governance of shareholders (Attig et al. 2008). Chen et al. (2011) found that if there are multiple large shareholders in a company, the nature of non-controlling shareholders is very important for improving corporate governance. Maury and Pajuste (2005) focused on the Finnish listed companies and found that when the company has a second largest shareholder with a different nature from the largest shareholder, it can improve corporate governance. State-owned enterprises in China have “one share dominates” and lack certain checks and balances. The corporate governance is in vain and the efficiency of enterprise operations is low. At the same time, China is currently in a period of economic transformation, the market reform has not been completed, and the government is deeply involved in the market economy. “State-owned” and “non-state-owned” shareholders may have different effects on corporate governance. Non-state-owned shareholders participate in state-owned enterprises, on the one hand, can restrain state-owned large shareholders from encroaching on the interests of small shareholders; on the other hand, they pay more attention to economic interests and corporate performance and investment returns in order to maintain Self-interest, and have stronger incentives to participate in corporate governance, and reduce excessive holding Excessive investment to improve the efficiency of capital allocation. Hence we develop the first hypothesis:

Equity Diversification and Capital Allocation Efficiency

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H1: Non-state shareholders in state-owned enterprises can effectively improve the efficiency of corporate capital allocation. 2.2 The Impact of Non-state Shareholders Participation on Corporate Efficiency The simple mixing of different capitals is difficult to solve the problem of internal control of state-owned enterprises. Only by introducing a high number of shareholdings and responsible non-state capital can the company governance be truly improved. After non-state-owned capital enters state-owned enterprises, whether different types of shareholders can form effective checks and balances is particularly important for the improvement of corporate governance. If the number of shares held by non-state shareholders is too small, the voice and influence of non-state shareholders are small, and their participation in business decision-making is low, then the essential motivation introduced by non-state shareholders will be obliterated, and the traditional problems of state-owned enterprises will not be solved. The mixed-ownership reform of state-owned enterprises should not only stop at the surface, but should go deep into the governance structure level. Considering the governance of non-state shareholders, not only the impact of the ownership structure should be considered, but the role of non-state shareholders should be analyzed in depth from the perspective of personnel assignment. This leads to our second hypothesis: H2: The higher the participation of non-state shareholders, the more efficient the capital allocation of state-owned enterprises.

3 Research Methodology 3.1 Data We use Shanghai-Shenzhen A-share listed state-owned companies from 2009 to 2016 as samples. (1) Excluded financial and insurance companies. (2) Excluded companies with missing data. The financial data and stock trading data are from the CSMAR database. The data on the introduction of state-owned shareholders, the participation rate of nonstate-owned shareholders’ equity structure is obtained through manual collection of corporate annual report information. To eliminate outliers interference, the main variable process winsorize of 1%. 3.2 Variables • Capital allocation efficiency: The efficiency of capital allocation at the company level is generally tested by “investment-investment opportunity sensitivity”. Following Fazzari et al. (1988), we use the sensitivity of the company’s investment expenditure (INV) (calculated by dividing the cash paid for the purchase and construction of intangible assets, fixed assets and other long-term assets by the total assets at the beginning of the year) to the investment opportunity (GROWTH) to measure the company’s capital allocation efficiency.

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• Equity diversification: According to the Chinese Company Law, shareholders with less than 10% shareholding ratio do not have the right to convene an extraordinary general meeting (Jiang and Kim 2015), so it is difficult to effectively monitor and balance the controlling shareholders. Based on this, we define a large shareholder as one holding more than 10% of the shares. Next, we define the participation of nonstate-owned large shareholders in three aspects: (1) the dummy variable EXTERNAL, EXTERNAL = 1 means that the company has at least one private capital large shareholder or foreign large shareholder; (2) the dummy variable PRIVATE, PRIVATE = 1 means that a company only has private large shareholders, otherwise it is 0; (3) the dummy variable FOREIGN, FOREIGN = 1 means that a company only has large foreign shareholders, otherwise the value is 0. • Control variables: With reference to the research of Chen et al. (2011), select SIZE (company size), CFO (free cash flow), LONGDEBT (long-term debt ratio), LIST (company listing time), ROA (return on assets), DUALITY (the dual dummy variable that represents the “two positions” of the chairman and CEO), and INDEP (the proportion of independent directors in the board of directors at the end of the year) as the control variables of the above model. At the same time, this paper controls the year effect and industry effect. 3.3 Equations We construct DID model to test the impact of equity diversification on the efficiency of corporate capital allocation. TREAT indicates whether the state-owned enterprise has introduced non-state shareholders. TREAT = 1 means that the state-owned enterprise has introduced non-state shareholders. POST represents the years before and after the state-owned enterprise introduced non-state shareholders. If a year is implemented after the mixed ownership reform, POST = 1. If β1 > 0, it means that the introduction of nonstate-owned large shareholders in state-owned enterprises can improve the efficiency of capital allocation. INVi,t = α0 + β1 TREATi × POSTi × TOBINQi,t−1 + β2 TREATi × TOBINQi,t−1 + β3 POSTi × TOBINQi,t−1 + β4 TREATi × POSTi + β5 TOBINQi,t−1 + β6 POSTi,t + β7 POSTi,t +β8 CONTROLSi,t−1 + εi,t (1) To test the impact of non-state shareholders’ participation on the capital allocation efficiency of state-owned enterprises, we construct the following model, RESTR_EXTERNALi,t-1 represents the participation degree of the equity structure. If the coefficient β1 of the multiplication term is greater than 0, it means that the higher the participation of non-state-owned shareholders in the equity structure, the higher the efficiency of state-owned enterprises’ capital allocation”. INVi,t = α0 + β1 EXTERNALi,t−1 × TOBINQi,t−1 + β2 EXTERNALi,t−1 + β3 TOBINQi,t−1 + β4 CONTROLSi,t−1 + εi,t

(2)

Equity Diversification and Capital Allocation Efficiency

41

4 Empirical Analysis and Results 4.1 Descriptive Statistics Table 1 shows the descriptive statistics of basic variables. The average annual investment expenditure of a company measured by INV is 5%, the median is 4% and the maximum and minimum are 0.35 and -0.05, respectively, the data is similar to the study of Chen et al. (2011), indicating that different companies investment level vary greatly. EXTERNAL represents the participation of non-state-owned shareholders in the equity structure. The average value is 0.670, indicating that 67% of state-owned listed companies have at least one non-state-owned large shareholder. It explains that non-state capital has played an increasingly important role in state-owned enterprises in recent years. Table 1. Descriptive statistics of basic variables Variables

Sd

Min

Max

Median

N

INV

0.050

0.060

−0.050

0.350

0.040

7068

GROWTH

0.170

0.370

−0.300

2.640

0.090

7068

22.390

SIZE

Mean

1.370

19.740

26.470

22.190

7068

CFO

0.0500

0.0700

−0.180

0.260

0.050

7068

LONGDEBT

0.100

0.120

0

0.520

0.050

7068

LIST

5.200

2

23

14

7068

ROA

13.02 0.030

0.060

−0.190

0.200

0.030

7068

DUALITY

0.090

0.290

0

1

0

7068

INDEP

0.370

0.050

0.290

0.570

0.330

7068

EXTERNAL

0.670

0.470

0

1

1

7068

5 Empirical Analysis and Results a) Test Results of the introduction of non-state shareholders and the efficiency of capital allocation: Table 2 shows the test results of the introduction of non-state shareholders and the efficiency of capital allocation. After data collection and sample processing, the treatment group includes 578 firm-year observations and the control group includes 426 firm-year observations. The coefficient of the variable TREAT * POST * GROWTH is significantly positive, indicating that when a state-owned enterprise changes from having no non-state shareholders to having non-state shareholders, the efficiency of capital allocation is improved. This result supports the first hypothesis of this paper, indicating that the introduction of non-state shareholders can improve the efficiency of capital allocation of state-owned enterprises. b) Test Results of Non-state Shareholders’ Participation and Capital Allocation Efficiency: Table 3 shows the test results of the participation of non-state shareholders in

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Q. Wang and Z. Ma Table 2. The regression results of model(1)

Variables TREAT * POST * GROWTH

Coefficients 0.048**

Variables

Coefficients

CFO

0.013*

LONGDEBT

−0.063*

2.546 TREAT * GROWTH

−0.023

0.474

(−1.572) POST * GROWTH

−0.022

(−1.886) LIST

(−1.483) TREAT * POST

−0.011

(0.654) ROA

0.222***

DUALITY

−0.008

(−1.423) GROWTH

0.029**

(5.105)

2.508 POST

0.008

(−0.891) INDEP

(1.114) TREAT

0.003 −0.039*** (−6.495)

−0.068 (−1.303)

cons

(0.760) SIZE

0.001

0.931*** (7.617)

Adjusted R2

0.149

N

1004

***, **, * indicate that the estimated coefficient of the variable is significant at the 1%, 5%, and 10% levels, respectively.

the equity structure. The coefficient of GROWTH(t−1) * EXTERNAL(t−1) is significantly positive, indicating that state-owned enterprises with non-state-owned shareholders holding more than 10% of the shares are more efficient in capital allocation than other state-owned enterprises. This verifies Hypothesis 2. The coefficient 0.011 means that when the investment opportunity increases by one standard deviation (0.004), the investment expenditure of a company with non-state-owned large shareholders will increase by 0.004% (0.011 * 0.004) compared to the companies without non-state-owned large shareholders. The coefficient of GROWTH(t−1) * PRIVATE(t−1) is significantly positive, indicating that owning private large shareholders can improve the efficiency of capital allocation, but large foreign shareholders have not played a role in improving the efficiency of capital allocation in state-owned enterprises.

Equity Diversification and Capital Allocation Efficiency

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Table 3. The regression results of model(2). Variables GROWTH*EXT ERNAL GROWTH EXTERNAL SIZE CFO LONDEBT LIST ROA

Non-state 0.011*** (3.148) 0.014*** (5.871) 0.001 (0.552) -0.034*** (-15.946) 0.006 (0.610) -0.014 (-1.380) -0.000 (-0.276) 0.186***

Constant

(11.918) -0.001 (-0.168) -0.008 (-0.387) 0.815***

N T Adjusted R2

(18.227) 7068 0.129

DUALITY INDEP

a.

***

**

Variables GROWTH*PRIV ATE/FOREIGN

Private 0.011*** (3.112)

Foreign 0.013 (1.124)

0.014*** 0.018*** (6.022) (9.552) PRIVATE/FOREI 0.000 -0.001 GN (-0.089) (0.253) SIZE -0.034*** -0.034*** (-15.894) (-15.859) CFO 0.006 0.006 (0.621) (0.535) LONGDEBT -0.014 -0.015 (-1.385) (-1.421) LIST -0.000 -0.000 (-0.218) (-0.034) ROA 0.186** 0.188*** * (11.916) (12.024) DUALITY -0.001 -0.001 (-0.179) (-0.179) INDEP -0.007 -0.006 (-0.371) (-0.300) Constant 0.815** 0.807*** * (18.184) (18.126) N 7068 7068 2 Adjusted R 0.128 0.127 GROWTH

* indicate that the estimated coefficient of the variable is significant at the 1%, 5%, and 10% levels, respectively.

6 Conclusion We investigate the relationship between equity diversification and corporate capital allocation efficiency. The equity diversification in this paper mainly refers to the introduction of non-state-owned shareholders (private, foreign capital) by state-owned enterprises to form a diversified equity structure. We found that the introduction of non-state shareholders in state-owned enterprises can effectively improve the efficiency of corporate capital allocation, especially private shareholders; the higher the participation of nonstate-owned shareholders, the higher the efficiency of state-owned enterprises’ capital allocation. The conclusions show that the key to the mixed ownership reform is to introduce non-state capital with a high degree of participation in the equity structure and high-level governance, and its essence is to improve the corporate governance mechanism.

References Jiang, G.H., Charles, M.C., Lee, H.Y.: Tunneling through intercorporate loans: the China experience. J. Financ. Econ. 98, 1–20 (2010)

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Attig, N., Guedhami, O., Mishra, D.: Multiple large shareholders, control contests, and implied cost of equity. J. Corp. Financ. 5, 721–737 (2008) Chen, S., Sun, Z., Tang, S., Wu, D.: Government intervention and investment efficiency: evidence from China. J. Corp. Financ. 17, 259–271 (2011) Maury, B., Pajuste, A.: Multiple large shareholders and firm value. J. Bank. Financ. 29, 1813–1834 (2005) Fazzari, S.M., Hubbard, R.G., Petersen, B.C., Blinder, A.S., Poterba, J.M.: Financing constraints and corporate investment. Brookings Papers Econ. Act. 1988(1), 141–206 (1988) Jiang, F., Kim, K.A.: Corporate governance in China: A modern perspective. J. Corp. Financ. 32, 190–216 (2015)

Research of “2025 Digital Empowerment Plan” Promotes Development of High-Level Sophisticated Industry Talents Jiajia Liu(B) Beijing Electronic Industry Party School of Communist Party of China, Beijing, China [email protected]

Abstract. The talents of high-level sophisticated industry are new driving force for developing high-level sophisticated industry to solve the vital issues of scientific research, cutting-edge technology, and others. Based on the investigation of the talent development status of state-owned enterprises in Beijing, this paper deeply elucidates the challenges of talent development of high-level sophisticated industry at the present stage. Then, we further put forward the “2025 digital empowerment plan” as the guidance to break the existing talent training dilemma and boundary, and set up the collaborative training mode based on government, industry, learning, research and application. We believe that our results and views can boost the improvement of high-level sophisticated industry of Beijing and break through some “bottlenecks” issues, as well as achieve the development of innovation. Keywords: Digitization · High-level sophisticated industry · Style · Talent development

1 Introduction General secretary Xi Jinping said: “Our country must take the leading position in the world in terms of scientific and technological innovation. We must find talents in innovative practice, cultivate talents in innovative activities, and collect talents in innovative enterprises. We must vigorously train innovative talents with large mount, reasonable structure and good quality. We should give top priority to the development of human resources in scientific and technological innovation, reform the mechanism of personnel training, introduction and use, strive to foster a number of world-class scientists, leading scientific and technological talents, engineers and high-level innovation teams, and pay attention to the cultivation of front-line innovative talents and young scientific and technological talents.” It can be said that the competition in today’s world, in the final analysis, is talent and education competition. Talent fostering is inseparable from the extensive participation of all the fields of society, to form a joint force. As a highly sophisticated state-owned enterprise, how to attract talents, retain talents and make good use of talents on a global scale is a clear requirement from general secretary Xi Jinping, © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, pp. 45–53, 2022. https://doi.org/10.1007/978-981-16-8660-3_6

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which are also the key factors for building an internationally competitive assemblies of high-level sophisticated industry. Nowadays, with the rapid development of China’s digital economy and the improvement of scientific research environment, more and more high-level sophisticated talents choose to return China for development, and the outstanding talents graduated from scientific research institutes in colleges and universities also choose to show their talents in enterprises. The high-level sophisticated talents team has been constantly enriched and expanded, but it is undeniable that there are also some problems leading to loss of core talents in recent years. Therefore, in the context of the new era, the development of high-level sophisticated industrial talent team should be focused on enterprises. Foreign countries are relatively mature in the cultivation mode of high-level sophisticated talents, while our country is relatively backward in this aspect [1]. During the period of the 14th five-year plan, China’s talent development strategy will gradually change from a large number to a high level, strive to build a high-end talent team that can meet the needs of China’s progress to a world power, and form a talent training mode in line with the trend of industrial transformation and upgrading [2]. So, this paper is to provide the cultivation mode suitable for our country based on the experience of advand countries and the specific situation of our country.

2 Concept Definition: An Overview of Development of High-Level Sophisticated Industrial Talents 2.1 Concept of High-Level Sophisticated Industry What is the definition of high-level sophisticated industry? Different developing stages have different meanings. It can be said that the development of Beijing’s high-level sophisticated industry represents the directions of economic development of Beijing, whose development is closely related to Beijing’s economic enhancement. Looking back on the evolution history of high-level sophisticated industry, the concept of high-level sophisticated industry was first put forward in the people Daily published in 1960, which specifically refers to technologies and products with advanced, precise and cutting-edge characteristics. As time goes on, the development of high-level sophisticated industry has experienced embryonic stage, growth stage, development stage and mature stage. Different stages have been endowed with different contexts, and the academic understanding of high-level sophisticated industry is also different. For instance, some scholars think, innovation is the driving force of constructing high-level sophisticated industry, technology and knowledge intensive industries is the guidance, focus on the main strategic positioning of the capital city, specific industries as the auxiliary, and building structure with competitive advantage as the key point [3]. Other scholars believe that high-level sophisticated industry refers to the industry with technology, knowledge and talents as the main elements, innovation as the support, gathering superior resources, for obtaining higher income, high efficiency and high radiation [4]. In order to facilitate discussion, based on the existing research and combined with the reality of economic development at this stage, this paper defines high-level sophisticated industry as an industrial structure with digital as the leading, knowledge and technology intensive enterprises as the guidance, and the setup of a large number of enterprises with competitive and comparative advantages as the core.

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2.2 The Concept of High-Level Sophisticated Industrial Talents As mentioned above, high-level sophisticated industry is dominated by knowledge intensive and technology intensive enterprises. How is the difference between high-level sophisticated industry and common talents? That is, what are the characteristics of highlevel sophisticated industry talents. At present, the academic groups have not formed a universally recognized title and concept definition for talents in the fields of high-level sophisticated industry. Some scholars believe that high-level sophisticated industry talents are high-level talents, which refer to workers possess rich professional knowledge, systematic professional skills, devote to creative related science and technology activities, and are able to make contributions to the development of science and technology or economic and social development [5]. Other scholars consider high-level sophisticated industry talents as highly educated talents, which are people with master’s degree and doctor’s degree [6]. In this paper, we need to emphasize that the talents of highlevel sophisticated industry discussed in this paper are to make a narrow explanation, especially those who are engaged in scientific and technological research in high-level sophisticated industry. This kind of talents usually have the following characteristics: (1) high degree of education, generally have a master’s degree even a doctoral degree, and have systematic and solid professional knowledge in a certain field; (2) accumulating some scientific research work experience and have certain attainments in a certain field. 2.3 The Relationship Between the Development of High-Level Sophisticated Industrial Talents and Development of High-Level Sophisticated Industry

Fig. 1. Scheme of the relationship between the development of high-level sophisticated industrial talents and development of high-level sophisticated industry.

As we known, the base of regional development is industry, and the base of industrial development is talents. In the field of high-level sophisticated industries, the personnel

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sources engaged in scientific research and cutting-edge technology research are generally the foundation of the development of high-end enterprises, and they are the necessary guarantee for enterprises to carry out technological innovation and product innovation. It can be said that high-level sophisticated industrial talents are the guarantee for the future development of high-level sophisticated industries and the most core resources for their surviving, developing and expanding. The development of high-level sophisticated industries can promote the development of regional economy, and then form a better policy environment, scientific research environment, talent environment, etc., which has a strong attraction for high-level sophisticated industrial talents. They are supplementary to each other (see Fig. 1).

3 Advantages and Characteristics: Advantages of Developing High-Level Sophisticated Industrial Talents of Beijing 3.1 Advantages of Policy Environment Since China’s reform and opening up, various industrial policies have played a vital role in promoting economic development. Through the formulation of relevant laws and policy documents, Beijing has provided relatively perfect legal support and institutional guarantee for the introduction and development of high-level sophisticated industrial talents. Just like the “Overseas Talent Gathering Project” launched in Beijing in 2008, this talent project plans to build 10 advanced research teams, 1 innovation and entrepreneurship base, and about 20 high-technology entrepreneurship teams in five to ten years. The establishment of the above research teams, entrepreneurship teams, and entrepreneurship base has attracted a large number of excellent high-level sophisticated industrial talents, At the same time, a series of safeguard measures have been formulated for the introduction of talents. For example, in the aspect of talent introduction, Beijing has launched specific policies. For example, for the introduction of talents without own house of property rights, it can be implemented in the collective households of the employing units. If the employing units have no collective households, it can be settled in the collective households of the talent public service institutions filed by the units. At the same time, the problem of the spouses and children of the introduced talents also would be solved. In addition, in terms of the implementation of specific policies, for those that can be solved immediately, and those that can’t be solved on the spot, the relevant departments must be arranged immediately to intervene at the first time and deal with them within a time limit. 3.2 Advantage of Scientific Research Environment Beijing has always made great contributions and played a leading role in obeying and serving the national strategy. Since 2014, Beijing has promulgated a series of “sophisticated” industrial development policies and adopted a series of industrial adjustment measures. In the new historical stage, Beijing closely follows the steps of general secretary Xi Jinping and obey his strategies of “four centers”, which is specifically provided for Beijing. We will thoroughly implement the important directive spirit of general secretary

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Xi Jinping on “building a national scientific and technological innovation center with global influence”, “building a highly sophisticated economic structure” and “building a new highland for economic development in Beijing”. We have clearly defined the goal of developing high quality industries and fostering a number of internationally renowned brands and multinational enterprises with strong international competitiveness. Form a group of industrial assemblies with technology leading power, and participate in global industrial competition at a higher level. These results provide a good guarantee for the development of scientific research work of high-level sophisticated industrial talents. 3.3 Advantage of Talents Environment The development of high-level sophisticated industries needs a large number of highlevel talents of various fields to solve scientific research, cutting-edge technology and other problems. Beijing possesses 93 high-education universities, including eight 985 universities and twenty-six 211 universities. In addition, Beijing also has a larger amounts of high-level research institutes of disciplines and fields. The number of these universities and institutions is the first class in China, and they have leading advantages in teaching staff, basic scientific research, experimental conditions and equipment resources, with years of scientific research environment precipitation and improvement of talent training system [7]. These advantages facilitate and support the development of high-level sophisticated industries in Beijing [8].

4 Current Situation Analysis: Current Situation of Talent Team Construction in Beijing’s High-Level Sophisticated Industries Path Choice In order to adapt to the domestic and international economic situation, strengthen the four functions of the capital and promote the coordinated and integrated development of Beijing, Tianjin and Hebei. Beijing clearly expressed in 2014 to abandon the “big and complete” economic system and build “high-level sophisticated” economic structure. The high-level sophisticated industry has been pushed to the top of the “seeking for change and aiming at development”. Now “high-technology” has become the primary task of Beijing’s economic development and economic transformation. Taking a representative state-owned enterprise of Beijing high-technology industry as an example, as a high-technology industry group, it has a number of high-technology industry enterprises with national leading level. The industrial group aims to form an industrial pattern of “one hundred billion platform as the traction, two to three 10 billion platforms as the support and several billion level platforms as the basic” at the end of the 14th five-year plan, and to build the “aircraft carrier battle group” of Beijing “high-level sophisticated “industry. In 2021, the group further refined its objectives, it is clear that we should further strengthen scientific and technological innovation and key core technology research, and specially implement a talent plan and gather a number of high-level sophisticated leading talents and top technical talents. Therefore, the introduction and training of highlevel sophisticated industrial leading talents and technology top talents is the key to the construction of talent team of high-level sophisticated enterprises.

50

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Drucker pointed out (management challenges in the 21st century) that, the most important contribution management needs to make in the 21st century is to improve knowledge work and the productivity of knowledge workers. At the same time, he stressed that in the 21st century, the most valuable assets of organizations (including enterprises and non-profit organizations) will be knowledge workers and their productivity [9]. Indeed, the talent team construction in high-level sophisticated industries has made some achievements in recent years. But with the rapid development of Internet plus digital technology, the digital transformation of high-level sophisticated industries has become an important engine for high-quality development of high-level sophisticated enterprises. Consequently, the construction of the high-level sophisticated talent teams is also facing great challenging. Enterprises need further improving and upgrading in terms of talent introduction, retention, education, and use. Training methods and ways need to be adjusted and strengthened, in order to truly mobilize the talents to play a greater role and achieve greater value.

5 Analysis on the Development Path of High-Level Sophisticated Industrial Talents Based on the above analysis, although Beijing has its unique advantages in talent team construction, it also faces some challenges. For state-owned high-level sophisticated enterprises, combine the development strategy of the 14th five-year plan with the help of the important opportunity of digital development at current stage, and take the digital as the guiding to mobilize the talent development resources inside and outside high-level sophisticated enterprise groups has become the top priority for high-level sophisticated enterprises to solve their talent problems during the process of development. Therefore, based on the actual situation of the investigated enterprises, this paper puts forward a reference path (as shown in Fig. 2) to lead the development of talents in high-level sophisticated industries with the “2025 digital empowerment plan”, that is, enterprises should first establish digital thinking, formulate the “2025 digital empowerment plan” in combination with the 14th five-year development plan, and integrate the resources of talent development inside and outside of the enterprise to form a joint force. To promote the cultivation and construction of high-technology talents, and further promote the improvement of digital thinking ability and level in the process of implementation of the plan, so as to form a closed-loop talent development path, we present several important parts of the digital empowerment plan as follows. 5.1 Strengthen Political Guidance, Strengthen Ideological Guidance of High-Level Sophisticated Talents 2021 is the 100th anniversary of the founding of the Communist Party of China, and also the first year of the 14th five-year plan. The party schools of high-technology enterprises should adhere to the principle and purpose of Party school, strengthen the ideological and political construction of high-level sophisticated industrial talents, and strengthen the cultivation of their party spirit and style. We should learn to understand and practice the new socialist ideology of Xi Jinping as the primary task of talent training in

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Fig. 2. Scheme of the research on “2025 digital empowerment plan” leading the development of high-end industrial talents

high-level sophisticated industries. We should constantly improve the political learning ability, political judgement and political insight of high-level sophisticated talents, and truly improve the political sensitivity of high-level sophisticated talents, making them become the firm executors and powerful propellent of the party’s lines, principles and policies. Secondly, it is necessary to carry out special education of party history for high-level sophisticated industrial talents, so as to make them truly understand history, increase credibility, respect, morality and practice. 5.2 Strengthen the System Construction and Sound the System Guarantee for Constructing High-Level Sophisticated Talent Teams Notely, high-level sophisticated industrial talents themselves can be considered as a scarce resource. Therefore, in order to promote the construction of talent team, enterprises should strengthen the top-level design of the system, strictly implement the requirements of the central government and Beijing Municipality, so as to make the construction of talent teams institutionalized and standardized. At the same time, it is necessary to improve the supporting guarantee mechanism in combination with the actual situation of the enterprise, as well as truly liberate the scientific research workers from the complicated administrative affairs, so that the high-level sophisticated talents can wholeheartedly integrate into the enterprise, make achievements, and find a sense of belonging and achievement. 5.3 Consummate the Training System and Improve the Quality of High-Level Sophisticated Talents Based on the reality of high-level sophisticated enterprises, according to the characteristics of high-level sophisticated talents, the training scheme is created accurately and hierarchically, so as to enhance the pertinence and effectiveness of training. The first is to do the best of initial training, and the initial training focuses on integration, that is, to integrate talents into the domestic environment, enterprises and businesses. Secondly, we should strengthen the cultivation of talents’ ability. The medium-term cultivation

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is mainly aimed at the top-notch talents who have worked for more than three years. We should systematically improve their professional knowledge, quality and ability by clarifying the goal and direction of talent cultivation. Finally, the implementation of high-level training, which is mainly aimed at high-level sophisticated industrial talents already have worked in enterprises for more than five years. It aims to cultivate research experts and management experts through organizing high-level discussion and exchange platforms. 5.4 Building Digital Platforms to Create High-Level Talent Gathering Highlands In recent years, with the development and progress of digital technology, the investment of high technology state-owned enterprises in promoting information construction has significantly increased. It greatly promotes the construction of “Internet plus education” such as digital learning platform, WeChat, mobile APP, and so on. It truly leads to achieving a good atmosphere for people in high-level sophisticated industries to learn, without the limitation of space and time. At the same time, in terms of integration of production and education, high-level sophisticated enterprises are gradually building a digital communication platform, breaking the boundary of talent cultivation between universities, scientific research institutes and enterprises through digitization, and connecting high-level sophisticated enterprises with universities, scientific research institutes and industry associations, which greatly promotes to build a highland for high-level sophisticated talents.

6 Conclusion The development of high-level sophisticated talents and high-technology industries are not isolated, the two systems promote and support each other. Taking the opportunity of the start of the 14th five-year plan, this paper combines with the “2025 digital empowerment plan” a feasible “2025 digital empowerment plan” has been proposed. Owing to it leading by digitalization, we should integrate the advantageous resources inside and outside the enterprise to form a joint force, ensure the strict implementation of relevant policies and measures, and make timely adjustment and optimization, so as to gradually form a high-level sophisticated talent development ecosystem suitable for the development of high-level sophisticated, establish a strong talent team to provide talent support for building the leadership of high-level sophisticated industry.

References 1. Li, W.: Using foreign experience for reference to construct the training mode of innovation and entrepreneurship talents in China. J. Yanan Coll. Educ. 31, 22–24 (2017) 2. Duan, D.: On the new thinking of talent development planning in the period of the 14th five-year plan. Zhonghua Chuanqi. 15, 25 (2020) 3. Wang, Y., et al.: Research on background, role orientation and connotation definition of Beijing’s construction of high-level sophisticated economic structure. Friends of Leaders 23, 51–59 (2017)

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4. Fan, H., et al.: Research on the Development Mechanism of High-Level Sophisticated Industries in Beijing. Capital University of Economics and Trade Press, p. 2 (2021) 5. Fan, H., et al.: Research on the Development Mechanism of High-Level Sophisticated Industries in Beijing. Capital University of Economics and Trade Press, p. 3 (2021) 6. Zhang, B., et al.: Spatial Distribution and Changing Trend of High-Level Sophisticated Talents in China. Resources and Environment in Arid Areas, p. 3 (2019) 7. Financial and Economic Office of the Standing Committee of Beijing Municipal People’s Congress. Research report on promoting the development of high-level sophisticated industries in Beijing during the 14th Five Year Plan period 8. Financial and Economic Office of the Standing Committee of Beijing Municipal People’s Congress. Research Report on Promoting the Development of High-Level Sophisticated Industries in Beijing during the 14th Five-Year Plan Period. Journal of theory and practice of National People’s Congress 3, 1–11 (2021) 9. Druccker, P.F.: Management Challenges for the 21st. China Machine Press, p. 131 (2018)

Research on the Development Path of Cultural Industry from the Perspective of “The Belt and Road” Shanhua Zhao1(B) and Xiaqin Wu2 1 Capital Normal University, Beijing, China

[email protected]

2 Beijing Foreign Studies University, Beijing, China

[email protected]

Abstract. “The Belt and Road” is a strategic policy put forward by China in 2013 and has played a very important role in promoting the cultural industry. This article first analyzes “the Belt and Road” cultural industry present situation. Besides, through China’s successful cultural development case analysis, the article summarizes the impact of “the Belt and Road” on the development of cultural industry and puts forward suggestions on the development path of China’s cultural industry both for domestic and abroad. Keywords: The Belt and Road · Silk Road · Cultural industry · Path

1 Overview of “The Belt and Road” In September 2013, Chinese President Xi Jinping successively put forward the major initiatives of “the Silk Road Economic Belt and the 21st-Century Maritime Silk Road”, referred to as the “the Belt and Road”, which became a very important regional cooperation platform for China. It is a national strategy of great significance on multiple levels including politics, economy and culture in the era of multi-polarization, economic globalization, and cultural diversification. Today in 2021, China has formed a five-link development situation of “Policy Communication”, “Facility Connectivity”, “Unblocked Trade”, “Financial Connectivity” and “People-to-people Connectivity”. As for “Policy Communication”, in May 2015, the guidance on promoting international production capacity and equipment cooperation was issued. In May 2017, “the Belt and Road” international cooperation summit was held in Beijing, and 29 countries’ head attended the summit forum. Up to now, China has signed “the Belt and Road” cooperation document with 138 countries and 30 international organizations, and has fully exchanged and butted the national development strategy.

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, pp. 54–66, 2022. https://doi.org/10.1007/978-981-16-8660-3_7

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As for “Facility Connectivity”, it includes railway, energy, and other aspects. Countries along “the Belt and Road” through cooperation to enhance the accessibility of roads, meantime, promote the construction of cross-border power and transmission channels, actively carry out regional power grid upgrading and transformation cooperation. In addition, by jointly promoting the construction of cross-border optical fiber cable and other communication trunk networks, countries have unblocked the information obstruct along the Silk Road. As for “Unblocked Trade”, according to the latest data disclosed by the Maritime Silk Road Trade Index in December 2020, the import and export trade index of China’s Maritime Silk Road has reached to 169.85, the export trade index has reached to 195.46, and the import trade index has reached to 143.78. This shows that “the Belt and Road” policy has effectively increased the level of China’s utilization of foreign capital, and improved China’s aviation participation and foreign trade export leading power. As for “Financial Connectivity”, Countries along “the Belt and Road” can expand the scope and scale of bilateral local currency swap and settlement, and jointly promote the establishment of the Asian Infrastructure Investment Bank and the BRICs Development Bank. At the same time, accelerate the establishment and operation of the Silk Road Fund. As for “People-to-people Connectivity”, “the Belt and Road” has promoted the people exchanges between friendly countries, enhanced mutual understanding and friendship, and laid a solid foundation for public communication and regional cooperation.

2 The Development of “The Belt and Road” Cultural Industry 2.1 Comparison of Regional Development in Cultural Industry Due to China’s vast territory, there are great differences between each province in geographical locations and economic strength. In the process of “the Belt and Road” strategic development, the regional development of cultural industry is not very balanced. This paper studies the performance of 31 provinces in China on the index of “People Cultural Exchanges”. The total average score of 31 provinces in China on the index of “People Cultural Exchanges” is 9.34 (with a full score of 16). Among the 18 provinces that are higher than the average score, 7 provinces in the East, 3 in the northeast, 3 in the middle, and 5 in the West (Table 1).

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S. Zhao and X. Wu Table 1. Higher performance provinces

Ranking

Province

Score

Ranking

Province

Score

1

Shanghai

15.77

10

Guangxi

11.01

2

Beijing

15.61

11

Henan

10.90

3

Shandong

13.73

12

Shanxi

10.85

4

Guangdong

13.52

13

Yunnan

10.57

5

Jiangsu

12.86

14

Heilongjiang

10.39

6

Zhejiang

12.59

15

Fujian

10.34

7

Hubei

12.41

16

Neimenggu

10.29

8

Sichuan

11.25

17

Hunan

9.81

9

Liaoning

11.18

18

Jilin

9.59

a The subjects of this assessment are 31 provinces in China, which are divided into four regions:

Eastern, Northeastern, Central and Western. Among them, the eastern region includes Guangdong, Shandong, Shanghai, Zhejiang, Jiangsu, Tianjin, Fujian, Beijing, Hebei and Hainan, a total of 10; The northeast region includes Liaoning, Heilongjiang and Jilin, a total of 3; The central region includes Henan, Hubei, Hunan, Anhui, Jiangxi, Shanxi, a total of 6; The western region includes Neimenggu, Gansu, Sichuan, Shanxi, Chongqing, Guangxi, Yunnan, Guizhou, Ningxia, Xinjiang, Qinghai and Tibet, a total of 12. b The index of “People Cultural Exchanges” (16 points) are composed of four secondary indices, namely: “Friendly City” (4 points), “Tourism Popularity” (4 points), “Education Cooperation” (4 points), and “Communication Activity” (4 points). Among them, “Friendly City” is measured by the number of friendly city relations between provinces and overseas countries, “Tourism Popularity” is measured by the number of inbound foreign tourists, “Education Cooperation” is measured by the amount of cooperation between provinces and overseas schools, and “Communication Activity” is measured by the number of foreign cultural exchange activities. c Data Source: “the Belt and Road” National Data Center.

From the four secondary indices, the score rate of “Friendly City” is generally high, and the difference is small. “Communication Activity” index has a large degree of dispersion, reflecting the great differences in foreign cultural exchange activities. From the perspective of regional distribution, the performance of the eastern region is better, showing a trend of Eastern > Northeast > Central > Western, which is consistent with the development trend of various regions in China (Fig. 1).

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57

Tourism Popularity Communication Activity

15 10

2.42 3.2

0.61 3.33

5

2.9

2.61

3.2

3.84

2.12 3.13

1.23 1.33 1.81 2.94

East

Northeast

Central

West

0

0.82 2.83

Fig. 1. Regional differences of “People Cultural Exchanges” index in four indicators. Data Source: “The Belt and Road” National Data Center

2.2 Comparison of Economic Effects in Cultural Industry Under the guidance of “the Belt and Road” policy, China’s cultural industry began to export to the outside world, and its economic effect has become increasingly prominent. We compare the economic benefits of cultural industry from two dimensions: the import and export publications, and the import and export of copyright. In terms of the import and export of books, periodicals, newspapers, sound recording, videotape and electronic publications, it can be seen from Table 2 that the current import and export deficit is large, and the import quantity and import amount are greater than the export quantity and export amount. Except that the import and export quantity of periodicals are basically the same, this difference among other categories are very large. At present, China’s cultural industry is still dominated by imports, which means there is still a lot of space for export improvement. Table 2. Comparison of import and export situation Category

Output Quantity (10000 copies)

Input Amount (USD 10000)

Quantity (10000 copies)

Amount (USD 10000)

Books

1134.37

5521.35

3139.18

24147.74

Periodicals

294.87

516.34

295.34

13365.54

Newspaper

43.61

42.00

771.98

1047.23

Sound Recording

10286

55.30

108721

95.06

Videotape

840

0.99

5083

Digital publications

–

149.61

–

a Data Source: National Statistical Yearbook (2020).

9.11 41012.14

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In terms of copyright, the total amount of import and export copyrights is basically the same. In terms of classification, there are four categories: books, sound recordings, video recordings and electronic publications. The difference between the import and export copyrights is basically the same in the category of books. The number of export copyrights in audio recordings and electronic publications is larger than that in import copyrights, which indicates that at present, the cultural export has greater advantages. While the video products are still dominated by import copyrights. Table 3. Comparison of copyright import and export situation Copyright import

Total

Books

Sound recording

Video fixation

Electronic publications

Total

16140

15684

78

204

11

U.S.A

4346

4234

15

73

–

The United Kingdom

3467

3409

3

7

1

Germany

1234

1225

3

6

–

France

1065

1046

2

8

–

Russia

83

75

–

7

–

Canada

110

103

–

5

–

Singapore

271

236

22

6

–

2260

2162

4

52

6 3

Japan The Republic of Korea Other

408

404

–

–

2896

2790

29

40

1

Copyright export

Total

Books

Sound recording

Video fixation

Electronic publications

Total

15767

13680

290

8

838

U.S.A

1145

614

–

–

–

The United Kingdom

541

493

–

–

1

Germany

425

381

–

–

–

France

230

170

–

–

–

Russia

993

947

2

3

–

Canada

166

130

–

–

–

Singapore

547

404

–

–

–

Japan

397

357

–

–

6

The Republic of Korea

955

836

3

1

3

4

828

Other 10368 9348 285 a Data Source: National Statistical Yearbook (2020).

In terms of countries, the import and export of copyright are concentrated in different countries. China mainly imports copyright from The United States, the United Kingdom and Japan, while export copyright to the United States, the United Kingdom, Russia, South Korea, and Singapore (Table 3).

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3 The Impact of “The Belt and Road” on the Development of Cultural Industries In the era of globalization in the 21st century, the coexistence of multiple cultures is the norm. The continuous horizontal advancement of the economy has accelerated regional cooperation between different countries and regions and opened up channels for cultural exchanges. “the Belt and Road” policy has provided a solid political foundation and realistic conditions for promoting the development of cultural industries. Through the establishment of multi-level and multi-form humanities exchange mechanisms between countries, the quantity and quality of cultural exchanges between countries have been effectively greatly improved. “the Belt and Road” initiative has played a major role in promoting the development of cultural industries in three aspects, namely, helping country’s culture to become globalization, accelerating the integration of resource elements for the cultural industries, and promoting the core expansion of the cultural industry. 3.1 Helping Culture Globalization As a country with a long history, China should let the world know its cultural history. This is not only the precious wealth of the Chinese people, but also an immortal treasure in human history. China’s cultural industry has developed relatively late. Even though it has begun to take shape, there is still a big gap compared with Europe and the United States, Japan, South Korea and other East Asian countries. According to the data of China’s National Bureau of statistics in 2021, the cultural industry only accounts for 4.5% of GDP, far lower than the level of other countries. Number of Trains

Growth Rate

14000

300%

12000

250%

10000

200%

8000

150%

6000

100%

4000

50%

2000 0

0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Fig. 2. The number and growth of China Europe trains. Data Source: “The Belt and Road” National Data Center

The proposal of “the Belt and Road” policy can actively promote the outward development of Chinese culture. As shown in Fig. 2, the number of open line trains in China and Europe is increasing steadily. This helps countries along “the Belt and Road” to better understand the Chinese culture, and helps Chinese culture go abroad to narrow the scale of industrial differences between culturally strong countries.

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As an integral part of the world’s human culture, Chinese culture should be exported overseas. “the Belt and Road” policy provides a strong guarantee, relying on the interconnection cooperation network, it has opened up a channel for the cultural industry to go global in Asia, Europe and Africa, which is more conducive to the spread of culture to Europe and the United States. Take the film industry as an example. In recent years, more and more people can find Chinese culture on European and American screens. The appearance of elements such as pandas, kung fu, and Mulan is a strong proof of the export of Chinese culture. 3.2 Integrating Cultural Resources The core of cultural output lies in excellent culture, and excellent culture relies on cultural resources. Each link of the cultural industry chain needs the blessing of cultural resources to interlock and form a relatively complete cultural system, “the Belt and Road” has solved the scarcity and imbalance of cultural resources in various regions. The cultural development in the eastern coastal areas is fast, while the driving force of cultural development in the central and western regions is obviously insufficient. The basic design of cultural industry is relatively backward. In addition, there are few or unimpeded channels for cultural exchange with foreign countries, which leads to the low quality of their cultural products and affects the cultural output. In the strategic framework of “the Belt and Road”, the state has concentrated, scientific, and efficient allocated the cultural resources. We can find that in the China’s “the Belt and Road” cultural and tourism industry’s projects for 2020 years, except for 6 national projects, 5

6

1 3

1 3

2 1 1 1

3 2 4 2

3

4

East

1

1 1

Northeast

BeiJing HeBei JiangSu AnHui HuBei GuangDong SiChuan YunNan NingXia National

Central

TianJin ShangHai ZheJiang JiangXi HuNan GuangXi GuiZhou ShanXi XinJiang

West

13 19

7 Fig. 3. “The Belt and Road” cultural and tourism industry’s projects quantity for 2020 years (Classed by Region). Data Source: “the Belt and Road” National Data Center

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the rest 39 key projects are fully considered the difference of regional capacity, and mainly support the central and northern regions (Fig. 3). 3.3 Develop Characteristic Cultural Projects The areas along the “the Belt and Road” have different cultural styles and contents, but they all have their own characteristics. “The Belt and Road” policy has brought the advantages of China’s rapid development in the new era to the cultural industry. For example, looking at the China’s “the Belt and Road” cultural and tourism industry’s projects for 2020 years, it includes various new forms such as creative parks, performing arts, overseas promotion, movies, animation, creative cultural, tourist resorts, heritage parks, ceramics, mobile games, and so on. It not only meets the preferences of people of all ages, but also facilitates global promotion (Table 4). Table 4. “The Belt and Road” cultural and tourism industry’s projects form for 2020 years Form

Quantity

Form

Quantity

“One belt, one road” platform for cultural tourism

12

R&D of cultural and creative cooperation

12

8

Cultural exhibition and sales

3

Overseas promotion of video game Digital products

2

Cultural business performance

2

Cultural architecture

5

Cultural experience

1

4 Suggestions on the Domestic Development Path of Cultural Industry It is precisely because “the Belt and Road” has an extremely significant and important impact on the development of cultural industries, therefore, how to develop domestic cultural industries through the policy of “the Belt and Road” has become a crucial issue. 4.1 Establish an Internet Integrating Platform The 21st century is the era of the Internet. We need to build a carrier platform for cultural exchanges between cities. Multi-network integration provides unprecedented convenience for this cultural exchange. Through short video platforms, together with live broadcast platforms, local cultures can be spread in a more intuitive form. At the same time, with the help of e-commerce, the tourism industry’s ability to aggregate resources on the platform can be fully utilized, and the exhibition, tourism, performing arts and other forms can be deployed as a link in the industry chain to promote the spread and development of culture. At present, China has formed many mature scale methods in the cultural industry, such as the Beijing International Film Festival, Cultural Industry Expo, and many other

62

S. Zhao and X. Wu

large-scale international cultural exhibition platforms. China can use the power of the Internet, combine with live broadcast, segment video, e-commerce, and other industries, to increase the social influence of these cultural exchange activities. At the same time, we can actively guide and encourage domestic cultural enterprises to participate in these large-scale exhibitions, open the channels between enterprises and the country, and enable the country’s resources to effectively land in industrial development. In addition, we can also use new media methods to strengthen the protection of cultural relics. In 2020, China has carried out 266,278 law enforcement inspections on cultural relics, and 590 illegal acts were found, including excavation, theft, intentional or negligent damage to cultural relics. As an important node of “the Belt and Road”, Gansu Province has 236 provincial-level intangible cultural heritages. Therefore, the Gansu Provincial Government uses new media technology to vigorously promote cultural relics protection. For example, the bad behavior of destroying Dunhuang Mogao Grottoes is presented to tourists to make tourists spontaneously aware to the destructive nature of destruction, thereby reducing or even eliminating the consequences of such bad behavior. 4.2 Industrial Integration Promotion Under this kind of thinking, localities can use strong industries to promote the development of cultural industries. Take Beijing as an example. As an important base for the publishing industry, Beijing has huge industrial advantages. In the process of the “the Belt and Road” initiative, the government can take this opportunity to publish many outstanding Chinese culture books, the idea of “Internet + Books” can be innovatively adopt, such as online reading and 3D books, to carry out multi-form and multi-layered development in book publishing. In addition, we can also assist in the form of cultural creation. Take the Forbidden City Cultural and Creative as an example, the Forbidden City Online Store currently has nearly 7 million fans and is currently one of the most successful cultural and creative brands in China. Its jewelry, makeup, stationery, souvenirs, and other cultural and creative products have caused great discussion several times and have huge sales volume across the country. While making profits, it also spread the culture of the Forbidden City across the country through the calendar, maps, ceramics, refreshments, and other products, playing a multi-purpose role. This is also one of the industrial development paths that other industries can learn from. 4.3 Create Characteristic Cultural Industry Projects Since “the Belt and Road” strategic concept been put forward, China has built it in a culture-first manner. In the provinces and regions along the belt, various cultural industry projects such as film and television creation, heritage protection, and ethnic cultural promotion can be carried out to promote the local cultural industries development. In particular, the central and western regions can obtain funds, talents, and policy dividends in this way, and implement resource element allocation in the surrounding areas, so that the local people can also benefit from economic development and cultural promotion. Take Xi’an Qujiang New District Cultural Industry Demonstration Park as an example. In 2015, the park had already achieved an impressive half-year revenue of 485

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63

million yuan. The construction path of Xi’an Qujiang New District is mainly divided into three aspects. The first is government-led. Through capital investment, cultural education for the whole city has been carried out. At the same time, it has taken the lead in bringing the government, public institutions, and state-owned enterprises to provide one-stop service for cultural enterprises, free of charge for various certificates and training enterprises Talent. The second is to highlight the characteristics. Qujiang has a large amount of intangible cultural heritage. Therefore, when developing the demonstration area, the government formed a cultural industry construction direction that is led by the culture of the Tang Dynasty and integrated with the cultural characteristics of the modern city. Through the integration of historical sites, folk customs and other resources, a seven-in-one cultural industry support path was created, including cultural funds, loan guarantees, venture capital, fiscal and tax subsidies, rent reductions, special rewards, micro loans. Later this model has been expanded to Shaanxi Province and even the entire Northwestern region. The third is to increase the value of land. Through reasonable planning and gradual development, the land value of Qujiang New District has been continuously improved. Qujiang City Government has obtained economic resources through investment promotion and built a large number of non-replicated cultural brand projects such of Datang Furong Garden, Qujiangchi Heritage Park, etc., these projects have promoted the development of regional cultural industry, and also fed back the economic development, further increased the value of the land, and formed a virtuous closed loop. The government transferred the land to obtaining economic resources, thus the further construction planning of the city can be raised [1].

5 Suggestions on the International Development Path of Cultural Industry While “the Belt and Road” has set off an upsurge in the development of domestic cultural industries, it has also promoted the international development of Chinese culture. In key provinces and regions along the road, through cooperation with foreign regional organizations or countries, and the construction of cultural industries, the international development of China’s cultural industries is gradually moving towards the world stage. 5.1 Cross-Cultural Communication Cross-cultural communication refers to exchanges and cooperation between China and other countries in same region, collisions of different cultures, mutual stimulation of cultural development, seizing development opportunities, and promoting the full exchange of regional advantages and cultural resources. We study 71 countries along “the Belt and Road” performance in the index of “People Communication”. The total average score of “People Communication” is 11.13 (out of 20). Geographically, the score of the index has a certain relationship with the distance to China. Asia and Oceania have the best overall performance, showing a high degree

64

S. Zhao and X. Wu Bilateral Cooperation Expectation Tourism and Culture

Talent Exchange

15 6.26 10 5

3.04 4.35

0 Asia Oceania

5.78

3.9 2.78

6.00

5.92

5.15

2.38

2.33

3.13

3.06

3.07

2.45

Central South Asia Africa and Asia Latin America

Eastern Europe

5.36 1.39 2.28 West Asia

Fig. 4. Regional differences of “People Cultural Exchanges” index in four indicators . a. The subjects of this assessment are 71 countries, which are divided into six regions: Asia Oceania includes 14 countries, including East Timor, Philippines, Korea, Kampuchea, Laos, Malaysia, Mongolia, Burma, Thailand, Wen Cai, Singapore, New Zealand, Indonesia and Vietnam. Central Asia includes 5 countries, including Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. West Asia includes 18 countries, including the United Arab Emirates, Oman, Azerbaijan, Palestine, Bahrain, Georgia, Qatar, Kuwait, Lebanon, Saudi Arabia, Turkey, Syria, Armenia, Yemen, Iraq, Iran, Israel and Jordan. South Asia includes 8 countries, including Afghanistan, Pakistan, Bhutan, Maldives, Bangladesh, Nepal, Sri Lanka and India. Eastern Europe includes 20 countries, including Albania, Estonia, Belarus, Bulgaria, BIH, Poland, Russia, Montenegro, Czech Republic, Croatia, Latvian, Lithuanian, maniya, Machia, Moldova, Serbia, Slovakia, Slovenia, Auckland, and Hungary. Africa and Latin America includes 6 countries, including Egypt, Ethiopia, Panama, Madagascar, Morocco and South Africa. b. The “People Communication” index (20 points) consists of three secondary indices: “Tourism and Culture” (6 points), “Talent Exchange” (6 points) and “Bilateral Cooperation Expectation” (8 points). Among them, “Tourism and Culture” are measured by the number of two-way national tourism exchanges, “Talent Exchange” is measured by the total number of students sent from China to the country, and “Bilateral Cooperation Expectation” is measured by the number of new friendly cities and exchange activities. C. Data Source: “The Belt and Road” National Data Center

of public interaction with China, while the data of Africa, Latin America and Eastern Europe are relatively low (Fig. 4). There have been good cross-cultural cases in countries along “the Belt and Road”. Take Guangxi culture as an example. Guangxi has built the China-ASEAN Free Trade Area by linking ASEAN culture. In 2015, the added value of Guangxi’s cultural industry was 42.4 billion yuan, with an increase of 11.2%. The establishment of the ChinaASEAN Free Trade Area, supplemented by the proposal of the China-ASEAN Community of Shared Future, enabled Guangxi to truly implement the cultural globalization. Among them, China-ASEAN Expo will permanent established in Nanning. Meanwhile, Guangxi has also adopted a multi-industry integration-driven approach and has hosted many Cultural Export Exhibition. Besides, several magazines are published in Indonesia, Malaysia, Thailand, Vietnam, and other Southeast Asian countries. In terms of film and television works, TV dramas such as “Chinese Theater”, “Beijing Youth”, “Happy Past

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of Lao Ma’s Family” have also been broadcasted in Cambodia, Laos and other ASEAN countries and received enthusiasm [2, 3]. 5.2 Cross-Regional Integration Cross-regional integration refers to the integration of similar but different regional cultures, from the exchange level to the integration stage, ushering in new development opportunities for the international cooperation of different cultures. Take China-Mongolia cultural industry cooperation as an example. China and Mongolia are very close to each other because of geographical location, ethnic blood, and frequent business exchanges. The geographical proximity facilitates cultural exchanges between the two countries, and the cultural proximity reduces the cultural gap between the two countries. Therefore, under the leadership of “the Belt and Road” policy, China and Mongolia have entered a new stage of cultural cooperation. The first is cross-border cultural tourism. Because China and Mongolia are adjacent to each other, the long border between the two countries has many shores, so travel is convenient. It is on the basis of this inherent geographical advantage that China and Mongolia signed a cultural tourism cooperation agreement, established a cross-border cultural tourism demonstration zone, and held a China-Mongolia-Russia cultural tourism project fair. Secondly is the diversified cultural activities. Similar to cross-cultural exchanges, cross-regional integration can also be driven by industrial integration. China and Mongolia established the China-Mongolia Expo to sort out both culture advantages, those kind promotion of trade talks, exhibitions and cultural exchanges between China and Mongolia have not only promoted the cultural integration of the two countries, but also stimulated the economy and stabilized the economic, trade and cultural cooperation between the two countries [4]. 5.3 Promote Cultural Tourism In addition to cross-culture communication and cross-regional integration, we can also promote the export of cultural tourism by adapting measures to local conditions. Take Fujian Province as an example. Fujian Province is the starting point of the Maritime Silk Road, and Zheng He’s voyages to the West, and is rich both in marine culture and marine resources. At the same time, the inland cities of Fujian Province also have Chinese unique Hakka culture. Using the unique resources of the province, the Fujian Government has launched the “Policies on Further Promoting the Development of Fujian’s Cultural Industry” and established numerous large-scale specialized cultural markets in accordance with local conditions, including oil paintings, carvings, and other products. It also innovatively established the Straits Cultural Property Exchange and other financing institutions that integrate culture and economy, meantime, industry organizations and intermediary agencies such as the artistic products identification are built up to support the culture industry development. While providing jobs, they also promoted the development of other industries. Besides, it also contributed to bring the cultural a lot of vitality and strengthen the cooperation with other countries [5].

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6 Conclusions Since the beginning of the 21st century, China’s cultural confidence is needed. The implementation of the “the Belt and Road” national strategy has helped China’s cultural trade open up foreign channels and provided a very good strategic platform. Chinese long culture can not only improve China’s international status in the world, but also promote trade through culture as a link between China and other countries, help China to transform the economic, construct a healthier economic structure, and realize cultural influence on the economy as a back feeding. In recent years, although various cultural industries have appeared, there have been many failed attempts. This article aims to analyze successful cases and summarize reasonable paths for the development of cultural industries, so as to provide policy recommendations for the development of cultural industries under the “the Belt and Road” perspective.

References 1. Jing, T., Min, L.: The development path of cultural industry in Western China under the strategy of the Belt and Road—based on the thinking of Qujiang New District Cultural Industry Demonstration Park. J. Xi’an Jiaotong Univ. Soc. Sci. (2016) 2. Zhan, T.Q., Ying, Y.F.: An analysis of Guangxi approach to ASEAN cultural industry cooperation in the context of Belt and Road. J. Guangxi Univ. (Philos. Soc. Sci.), 113–118 (2018) 3. Shalang, X., Chen, L.: A study on the development of cultural industry in Guangxi under the initiative of the Belt and Road. Manag. Obs., 78–79 (2019) 4. Yongfeng, Q., Chao, Z.: A study on the Belt and Road strategy and the cultural industry corridor of China, Mongolia and Russia. Mount Tai (2016) 5. Meng, C.: A comparative study on the comprehensive competitiveness of cultural industry in Fujian province from the perspective of Belt and Road. J. Anhui Radio Telev. Univ., 16–21 (2019)

A Comparative Study on Synergy Degree of Human Resource Development–Take Marginal Cities in Zhejiang, Fujian, Jiangxi and Anhui Provinces as Examples Keyong Wan(B) and Chaojie He College of Business, Quzhou University, Quzhou, China

Abstract. Coordinated development of regional economy is a key issue in China at present, and quantity and quality of human resources are key factors that determine the development of regional economy. Based on human capital theory, system theory and synergy theory, this paper uses principal component analysis method to measure the degree of human resources development in four cities, and then makes a comparative study on the synergy degree of human resources development. Results show that there are differences in three indexes of the degree of human resources development in the four cities. Synergy level ranking (from high to low) is as follows: Quzhou City, Huangshan City, Nanping City and Shangrao City. Finally, the paper puts forward some policy suggestions on medical and health services, developing education, improving on-the-job training and staffing. Keywords: Regional human resources development · Degree of human resources development · Degree of human resources synergy · Marginal cities in Zhejiang · Fujian · Jiangxi and Anhui provinces

1 Introduction and Literature Review 1.1 Background of Topic Selection Unbalanced spatial distribution of industrial production factors, especially human resources factors, is a remarkable feature in the process of China’s economic development. There are also great differences in the degree of human resources development in different regions. The coordinated development of regional economy is a long-term goal of China’s economic development. Under the background of national major strategy of regional integration in the Yangtze River Delta, Quzhou City, Nanping City, Shangrao City and Huangshan City, four marginal cities in Zhejiang, Fujian, Jiangxi and Anhui provinces, have close social cooperation and frequent personnel mobility, and the coordinated economic development among the cities has become the norm. In recent years, the four cities have actively participated in regional cooperation of “inter-provincial cooperation”, and jointly established a green manufacturing industryeducation integration alliance and a high-quality tourism alliance etc. Therefore, how © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, pp. 67–78, 2022. https://doi.org/10.1007/978-981-16-8660-3_8

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to promote the cooperative development of Zhejiang, Fujian, Jiangxi and Anhui cities is not only a practical problem, but also a classic problem studied by theoretical circles. What are the factors that affect the development of human resources, the measurement index of the degree of regional human resources development, and the degree of synergistic development of regional human resources? How to improve the level of human resources development in various regions has become a focus of attention. In existing literature, many researches have been made on cost and benefit of human resources development, but fewer researches are on the degree of human resources development degree. Most scholars focus on the research of human resource development in large areas, so they lack specificity From the point of view of synergetic development of human resources, this paper takes marginal development of Zhejiang, Fujian, Jiangxi and Anhui provinces as the research object, and analyzes marginal collaborative development of Zhejiang, Fujian, Jiangxi and Anhui provinces through factors affecting inter-provincial regional human resources development, so as to provide some reference for promoting regional human resources development and coordinating regional economic integration construction. 1.2 Research Status and Review at Home and Abroad 1.2.1 Research Status at Home and Abroad Schultz, an American economist, put forward that the ways of human resources development, namely formal education, on-the-job training, medical care and human resources mobility. Liu Z. et al. (2016) determined that the first-level indexes of regional human resources development degree included education level, scientific and technological research and development, medical security, employment status and social security. Income status of rural human resources development mainly included rural education and training income, medical care income, human resources value and human resources allocation status (Li H. 2016). It was pointed out in a quantitative study on China’s inter-provincial human resources development that education funding, public service funding, medical and health care were closely related to human resources development (Wu H. 2014). The composite system synergy model constructed by Chinese scholars Meng Q. and Han W. (2000) has been widely used in many fields. In the aspect of regional economy, using the composite system synergy model to measure the order degree and synergy degree of regional economy could give some suggestions for regional economic development according to its results (Ma X. 2019). In the aspect of regional innovation, taking Henan Province as an example, the synergy between regional innovation input and innovation output could be understood (Huang G. 2020). Referring to lots of literature, it is found that its application in the field of human resources is rare. 1.2.2 Theoretical Basis Human capital is generally understood as “immaterial capital” that people have and can bring profits in the future. It mainly refers to the comprehensive cost among higher education cost, on-the-job training cost and education opportunity cost gathering on human beings. Human capital plays a more significant role in economic growth than

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material capital, and is considered as the most important resource in all social and economic resources. Therefore, this paper constructs indexes from aspects of education and training, medical and health care and human resources mobility in measuring the level of human resources development. Overall function of a system is a property that a single element does not have. From the perspective of system theory, it is recognized that human resource development is an important part of human resource system. It is believed that integrity, relevance, hierarchical structure, dynamic balance and time series are the common basic characteristics of all systems. Therefore, from the perspective of decision and relative attributes, human resource development itself is also a system and not independent. Therefore, this paper divides the human resource development system into several subsystems. Synergy theory mainly includes synergy effect, servo principle and self-organization principle. Synergistic effect is the overall effect of “1 + 1 > 2” after the integration of several independent systems. Servo principle is that high-speed variables follow slow variables and order parameters control behavior of subsystems. It describes the selforganization process of system from interaction of internal factors. The self-organization principle describes the formation of a new temporal, spatial or functional sequence structure through coordination among multiple subsystems under the condition of external energy flow input. Therefore, based on the above characteristics of synergy theory, synergy degree of the research object can be measured.

2 Construction of Index System of Synergistic Development Degree For regional human resources. 2.1 Primary Selection of Indexes Through referring to various literature, according to the principle of index selection, the first-level index of synergistic development degree of regional human resources is defined as medical and health level, formal education level, on-the-job training level and human resources flow in this paper. 2.2 Construction of Index System The present paper mainly refers to the research of Zhao X. (2014), and establishes the system from the following three aspects. 2.2.1 Measurement Indexes of Medical and Health Level Selected measurement indexes of medical and health level in this paper are as follows: The proportion of health expenditure to local GDP (%), the number of health institutions per 10,000 people (pcs), the number of doctors per 10,000 people (person), the number of beds per 10,000 people (pcs), the number of health technicians per 10,000 people (person), the number of practicing (assistant) doctors per 10,000 people (person), the number of registered nurses per 10,000 people (person) and the number of hospitals per 10,000 people (pcs).

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2.2.2 Selection of Measurement Indexes of Formal Education Level Systematic measurement indexes used to characterize the formal education level in this paper include: the proportion of education expenditure to local GDP (%), the number of primary school students per 10,000 (pcs), the number of middle school students per 10,000 (pcs), the number of college students per 10,000 (pcs), the average education expenditure per student (yuan) and the teacher-student ratio (person). 2.2.3 Selection of Measurement Indexes of On-The-Job Training Level and Human Resource Mobility Measurement indexes of on-the-job training level and human resource flow include: unemployment rate (%), per capita transportation cost of urban residents (yuan), per capita transportation cost of rural residents (yuan), passenger traffic (10,000 people) and on-the-job training cost (10,000 yuan).

3 Quantitative Analysis of Human Resources Development Degree in Zhejiang, Fujian, Jiangxi and Anhui regions 3.1 Quantitative Study on Medical and Health Level By consulting the Statistical Yearbooks of Quzhou City, Huangshan City, Nanping City and Shangrao City, we can obtain various data reflecting the medical and health level in 2019. In order to understand the differences of relevant data between different cities, this paper first carried out descriptive statistics. Standard deviation of each index reflected that there were great differences in medical and health level among cities. Then principal component analysis was used to quantitatively study the medical and health level of the four cities, and strength of the medical and health level of the four cities was compared by comparing the scores. Based on the results of principal component analysis, standardized scores of two principal components ZY1 and ZY2 are as follows: ZY1 = 0.116Y1 + 0.148Y2 + 0.149Y3 + 0.130Y4 + 0.159Y5 + 0.163Y6 + 0.151Y7 + 0.12Y8

(1)

ZY2 = 0.422Y1 + 0.113Y2 + 0.155Y3 − 0.504Y4 − 0.175Y5 − 0.043Y6 − 0.322Y7 + 0.498Y8

(2)

After introducing contribution rate, calculation formula of the total score can be obtained as follows: ZY = (0.76405ZY1 + 0.14647ZY2)/0.91052

(3)

According to the above calculation formula, medical level scores of Quzhou City, Huangshan City, Nanping City and Shangrao City can be obtained, as shown in Table 1. It can be seen that the order of medical and health level in the four cities from high to low is as follows: Quzhou > Huangshan > Nanping > Shangrao.

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Table 1. Scores of medical level in four cities City

Score of the first principal component

Score of the second principal component

Score of medical and health level

Quzhou city

1.0502

0.7501

1.0019

Huangshan city

0.5329

−0.3706

0.3876

Nanping city

−0.3682

−1.2449

−0.5092

Shangrao city

−1.2149

0.8654

−0.8802

3.2 Quantitative Research on Formal Education Level Through using the same method, this paper obtains the relevant data of formal education level in Huangshan City, Quzhou City, Nanping City and Shangrao City. According to mean and standard deviation of various indexes in descriptive statistics, the four cities also have great differences in the formal education level. Thereafter, based on the results of principal component analysis, standardized scores of the two principal components ZJ1 and ZJ2 are as follows: ZJ1 = 0.144J1 − 0.318J2 − .294J3 + 0.120J4 + 0.163J5 + 0.292J6

(4)

ZJ2 = 0.385J1 + 0.134J2 + 0.187J3 − .394J4 + 0.201J5 + 0.194J6

(5)

After introducing contribution rate, calculation formula of the total score can be obtained as follows: ZJ = (0.49888ZJ1 + 0.38371ZJ2)/0.88259

(6)

According to the above calculation formula, scores of formal education level in Quzhou City, Huangshan City, Nanping City and Shangrao City can be obtained, as shown in Table 2. Table 2. Scores of formal education level in four cities City Quzhou city

Score of the first principal component

Score of the second principal component

Score of formal education level

0.3034

1.1082

0.6533

Huangshan city

−0.1277

−1.0975

−0.5493

Nanping city

−0.3182

−0.5383

−0.4139

0.1426

0.5275

0.3099

Shangrao city

It can be seen that the order of formal education level in the four cities from high to low is as follows: Quzhou > Shangrao > Nanping > Huangshan.

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3.3 Quantitative Research About On-the-Job Training Level and Human Resource Mobility According to data in Statistical Yearbook, this paper first made descriptive statistics. Among them, standard deviation of each index was large, which shows that there are great differences among different cities with the same index. Then, based on the results of principal component analysis, standardized scores of the two principal components ZP1 and ZP2 are as follows: ZP1 = −0.176P1 + 0.326P2 + 0.300P3 − 0.077P4 + 0.334P5

(7)

ZP2 = 0.439P1 + 0.041P2 + 0.229P3 − 0.505P4 − 0.129P5

(8)

After introducing contribution rate, calculation formula of the total score can be obtained as follows: ZP = (0.58074ZP1 + 0.38561ZP2)/0.96635

(9)

According to the above calculation formula, on-the-job training level and human resource flow scores of Quzhou City, Huangshan City, Nanping City and Shangrao City can be obtained, as shown in Table 3. Table 3. Scores of on-the-job training level and human resource flow in four cities City Quzhou city Huangshan city Nanping city Shangrao city

Score of the first principal component

Score of the second principal component

Score of formal education level

0.4543

−0.2635

0.1679

−0.2787

0.7272

0.1227

0.0573

0.8390

0.3693

−0.2330

−1.3027

−0.6599

It can be seen that the four on-the-job training levels and human resource mobility scores from high to low are as follows: Nanping > Quzhou > Huangshan > Shangrao.

4 Quantitative Analysis of the Synergy Degree of Human Resources Development in Zhejiang, Fujian, Jiangxi and Anhui Regions The present paper divides the human resource development system into three subsystems: medical and health care, formal education, on-the-job training and population mobility. Only when each subsystem develops harmoniously, can human resource development produce ideal effect, can the degree of overall synergistic development be characterized by synergy degree and synergy degree of regional human resources development be researched through using composite system synergy model. In order to make the synergy degree of the four cities comparable, this paper uses 0 to represent order degree at the initial time of subsystem.

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4.1 Calculation of Order Degree of Order Parameter For order parameter Lm = (Lm1 , Lm2 , Lm3 , ···, Lmi ) of each subsystem of regional human resource development, where 1 ≤ m ≤ 3, i is the dimension of each subsystem, αmi and βmi are the maximum and minimum values of Lmi respectively. When αmi is a slow order parameter, the larger the value is, the higher the order degree of system is. Calculation formula of the order degree is as follows: μm (Lmi ) = (Lmi − βmi )/(αmi − βmi )

(10)

When αmi is a fast order parameter, the larger the value is, the lower the order degree of system is. Calculation formula of the order degree is as follows: μm (Lmi ) = (αmi − Lmi )/(αmi − βmi )

(11)

From the above Formula (10) and Formula (11), it can be seen that the order degree of order parameter ranges from 0 to 1, and the closer the value is to 1, the greater its contribution to the order degree of system is. Based on this, this paper calculated the order degree of health care order parameters, formal education order parameters, on-the-job training order parameters and population mobility order parameters in four cities.

MEDICAL AND HEALTH CARE OF ORDER DEGREE OF ORDER PARAMETER 1.0000

1.0000

0.3922

1.0000

0.7645

0.7452

0.9120

0.2000

0.9375

0.8717

1.0000

0.7552

1.0000

1.0000

1.0000

1.0000

0.0000

0.0600

0.3030

0.7791

0.5859

0.4331

0.7458

0.0000

0.4219

0.0000

0.0000

0.0000

0.0000

0.0000

0.0000

0.1333

FORMAL EDUCATION OF ORDER DEGREE OF ORDER PARAMETER

0.0000

0.0000

0.0000

1.0000

0.7634

0.3333

1.0000

0.0883

0.1483

0.0718

1.0000

1.0000

0.2418

0.3862

0.2048

0.4182

0.0000

0.3333

0.3077

1.0000

1.0000

0.0000

0.6098

0.0000

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K. Wan and C. He ON-THE-JOB TRAINING AND POPULATION MOBILITY OF ORDER DEGREE OF ORDER PARAMETER

0.0000

0.1165

0.1680

0.2122

0.0000

0.9667

1.0000

0.9856

0.4102

1.0000

0.4000

0.3396

1.0000

0.0000

0.4912

1.0000

0.0000

0.0000

1.0000

0.3509

4.2 Calculation of Subsystem Order Degree The order degree of subsystems can be measured by geometric average method or linear weighted summation method. For simple operation, this paper adopted linear weighted summation method to calculate the order degree of each subsystem, and formula is as follows: n μm (Lmi ) = Wi × μm (Lmi ) (12) i=1

Where 1 ≤ m ≤ 3, 0 ≤ Wi , and the sum of Wi is 1. As for weight calculation, CRITIC method is a better objective weighting method than entropy weight method and standard deviation method, and it can comprehensively measure weight of indexes more objectively. Therefore, CRITIC method is adopted in this paper, and specific calculation formula is as follows: n (13) ξi = σi × (1 − γmi ), i = 1, 2, 3, . . . , n m=1

Where ξi represents the influence degree of the i-th index on subsystem, σi is the standard deviation of the i-th index, and γmi is the correlation coefficient between the m-th and i-th indexes. ξi Wi = n

m=1 ξi

, i = 1, 2, 3, . . . , n (Wi is the weight of the i-th index)

(14)

After calculation, index weights of each subsystem are as follows: Medical and Health care = (W1, W2, W3, W4, W5, W6, W7, W8) = (0.0184, 0.1096, 0.1589, 0.1569, 0.2865, 0.1073, 0.1584, 0.0040) Formal Education = (W1, W2, W3, W4, W5, W6) = (0.0001, 0.1079, 0.0971, 0.0307, 0.7641, 6.40 E − 06) On - the - job training and population mobility = (W1, W2, W3, W4, W5) = (2.10 E − 05, 0.0796, 0.1251, 0.7952, 5.48 E − 05) Based on the above results, it can be calculated the order degree of medical and health subsystem, formal education subsystem, on-the-job training subsystem and population mobility subsystem in each of the four cities, and the results are shown in Table 4.

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Table 4. Order degree of human resource development subsystem City

Medical and health care

Formal education

On-the-job training and population mobility

Quzhou city

0.9464

0.7904

0.5291

Huangshan city

0.7915

0.614

0.1990

Nanping city

0.5094

0.0744

0.1522

Shangrao city

0.0083

0.6711

0.7953

4.3 Calculation of Order Degree of System If order degree of medical and health subsystem is μ01 (L1) at a certain initial moment, order degree of formal education subsystem is μ02 (L2) and order degree of on-the-job training and population mobility subsystem is μ03 (L3),after a period of development, at another moment, order degree of medical and health subsystem is μ11 (L1), order degree of formal education subsystem is μ12 (L2), and order degree of on-the-job training and population mobility subsystem is μ13 (L3), then the synergy degree of each subsystem in regional human resource development system is as follows:  3   3 μ1 (Lm) − μ0 (Lm) (15) D=± m=1

m

m

  Where when 3m=1 μ1m (Lm) − μ0m (Lm) is greater than zero, D takes a positive value, and vice versa. It can be known that value range of D is between −1 and 1. The closer it is to 1, the better the synergy is .On the contrary, closer to −1 indicates uncoordinated development of three subsystems in the region. Calculation results of synergy degree of human resources development system in marginal areas of Zhejiang, Fujian, Jiangxi and Anhui provinces are shown in Table 5. Table 5. Synergy degree of human resources development system in marginal areas of Zhejiang, Fujian, Jiangxi and Anhui provinces City

Quzhou city

Huangshan city

Nanping city

Shangrao city

Synergy degree

0.7342

0.4590

0.1794

0.1642

It can be seen that calculation results of synergy degree in Quzhou, Huangshan, Nanping and Shangrao are all positive. Finally, we can get the order of synergy degree of the four cities from strong to weak as follows: Quzhou > Huangshan > Nanping > Shangrao.

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5 Conclusion The present paper takes border areas of Zhejiang, Fujian, Jiangxi and Anhui provinces as the research objects, and makes a quantitative analysis on their human resources development from the perspective of development degree and synergy degree. The results show that Quzhou, Quzhou and Nanping perform best in terms of medical and health level, formal education level, on-the-job training level and human resource mobility. Besides the development degree, the synergy degree is also very important for human resources development, which means the balance degree of development. Based on calculation results of the synergy degree of human resources development, the order of the four cities from strong to weak is as follows: Quzhou > Huangshan > Nanping > Shangrao. In recent years, Quzhou City has continuously improved its medical and health level, and significantly improved its community-level medical and health service capacity by building a medical community and rationally dividing medical resources. At the same time, it has increased investment in preschool education, introduce a series of policies to introduce high-quality talents and encourage them to settle down in Quzhou. At the same time, Quzhou mentioned in the 14th Five-Year Plan that it should be established as the marginal central city of the four provinces and build an all-round talent policy system according to characteristic industries of the city. Quzhou’s policy behaviors in recent years have also validated results of the previous data analysis, which has a certain reference value for the development of the other three cities. 5.1 Policy Recommendations 5.1.1 Improve Medical and Health Service System According to the above analysis results, the most important thing to improve the level of medical and health care is to increase the number of health technicians. Hospital management mode should be innovated, cooperation and support with higher-level hospitals should be strengthened, and the construction of “integration of rural medical services in counties” should be promoted. For example, to set up a medical team, doctors above the intermediate level in Grade III hospitals can adopt the mode of “go to the mountainous areas and the countryside” to spread the technology, and they can also train more medical talents by “going to the city for further study” for qualified medical personnel in township hospitals. In addition, infrastructure construction should be strengthened, health resources should be reasonably allocated and the level of equipment and facilities in township hospitals should be improved. At the same time, opportunities should be created to improve the professional level of township medical staff, and high-quality talents should be introduced through formulating policies. A special specialty should be set up, technical personnel and special equipment with a certain technical specialty should be combined and managed, and clear instructions and uses should be given to them, so as to “make the best use of everything”. 5.1.2 Vigorously Develop Education Optimization and integration of educational resources should be strengthened and investment in education funds should be increased. In view of the aging of infrastructure in

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colleges and universities, funds should be raised as soon as possible, investment in education funds should be increased, equipment should be optimized, aging facilities should be repaired, renovated or replaced, so as to improve the teaching environment and living standards of teachers and students. At the same time, the construction level of teachers should be improved. The level of teachers greatly affects the local education level, so it is necessary to strengthen the construction of teachers. Relevant governments can attract foreign talents by issuing relevant policies, pay attention to the training of local young teachers, and cultivate excellent school spirit by setting a reasonable reward and punishment system, so as to select the superior and eliminate the inferior. 5.1.3 Improve the Level of On-the-Job Training Governments can introduce relevant training subsidy policies, increase the publicity of public training, improve its human resources training system, and encourage employees to pay attention to the importance of on-the-job training. Managers of enterprises should change their inherent training concepts and really pay attention to the training and education of employees. Single and traditional training modes should be changed to diversified and scientific training, unilateral “cramming” teaching should be combined with actual work and life, and cases or situations should be flexibly used to improve the sense of reality, so as to optimize the quality and effect of training. Training mechanism should be improved, a scientific evaluation system should be established, a timely incentive system should be established, and incentive system should be linked with training staff evaluation system to achieve higher training and incentive effect. 5.1.4 Improve Staffing In the process of regional human resources allocation, the first priority is to pay attention to investigation and research. Taking economy, society, culture, science and technology, education and health as the entry points, comprehensive analysis and demand investigation should be carried out. Talent selection should rely on study of regional background and actual needs of regional development should be considered. Second, attention should be paid to macro allocation of human resources and the principle of market-oriented and appropriate government intervention shall be insisted on. For the allocation of human resources, region is a big concept, even if it is a small region, it also includes all walks of life, which cooperate with each other and develop together. Therefore, in the process of human resources allocation, it is necessary to break the barriers between departments and industries, so as to saturate talent advantage in the region and provide guarantee for the all-round development of the region from the aspect of intellectual resources. In addition, establishing and perfecting supervision system of human resources allocation and strengthening governments’ own supervision are also very important to improve supervision effect. 5.2 Research Inadequacies and Prospects The present paper mainly studies influencing factors of human resources development, and measures the development degree and synergy degree of each city in human resources

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development. In the future, it will be an important direction to study the ecological synergistic development of human resources among municipal governments. In addition, affected by the epidemic, economies of all countries were greatly affected in 2020, most of the data from previous years does not have much reference value, and a series of policies for the coordinated development of the four provinces of Zhejiang, Fujian, Jiangxi and Anhui will be officially implemented in 2019. So this paper selects the data of 2019, and will use time series data to test it in the future.

References Huang, G., Xu, R., Wang, X., Li, M.: Evaluation of regional innovation synergy degree in Henan province based on composite system synergy degree M. J. Henan Agric. Univ. 54(06), 1059– 1066 (2020) Ma, X.: Evaluation of regional economic synergy degree in Beijing-Tianjin-Hebei based on composite system synergy model. Ind. Technol. Econ. 38(05), 121–126 (2019) Liu, Z., Zhang, P., Xiong, G.: Forecast of inter-provincial regional human resources development synergy degree. Stat. Decis. 2016(22), 76–79 (2016) Li, H., Guo, L., Zhang, W.: Study on evaluation index system of rural human resources development under the background of new urbanization. Ecol. Econ. 32(01), 131–134 (2016) Wu, H.: Measurement of the efficiency of human resources development in different provinces in China. Stat. Decis. 10, 97–99 (2014) Bai, L.: Synergy theory and management synergy theory. Gansu Soc. Sci. 2007(05), 228–230 (2007) Kun, W., Haizhou, S.: Comparative analysis of three objective weighting methods. Techn. Econ. Manage. Res. 06, 48–49 (2003) Meng, Q., Han, W.: Study on composite system synergy degree model. J. Tianjin Univ. 2000(04), 444–446 (2000)

Research on the Influence of Digital Finance on Residents’ Service Consumption Expenditure Menggang Li1,2(B) , Guangwei Rui2 , and Jingcheng Li2 1 National Academy of Economic Security, Beijing Jiaotong University, Beijing, China

[email protected]

2 School of Economics and Management, Beijing Jiaotong University, Beijing, China

{20113009,19113005}@bjtu.edu.cn

Abstract. Under the background of the “post-epidemic” era, household consumption, as an important pillar force of economic development, plays an increasingly important role in China’s economic growth. Among them, the increase of residents’ service consumption expenditure reflects the improvement of residents’ living standards and plays a vital role in adjusting and optimizing China’s market structure and stimulating economic recovery after the epidemic. As an indispensable force in the development of the modern market economy, finance has a close connection with residents’ consumption. In recent years, with the rapid development of China’s Internet economy and the improvement of infrastructure construction, as an emerging financial model, digital finance has developed rapidly in China’s financial market. Based on reading domestic and foreign research results, this paper studies the impact of the popularization of digital finance on service consumption expenditures of residents in China from the theoretical and empirical levels. Through research, it can be found that (1) from a national perspective, the increase in the popularity of digital finance has a positive impact on residents’ service consumption expenditure. (2) From the perspective of digital financial structure, diversified financial services and, comprehensive financial services have a greater impact on residents’ service consumption expenditure. Based on the above research conclusions, this article suggests strengthening the construction of digital finance in the central and western regions, increasing residents’ cognition of digital finance, and improving digital financial innovation. Keywords: The digital finance · Resident consumption · Service consumption · Panel data

1 Introduction In recent years, China’s economic development has entered an area of new normal of the economy” and the economic growth has slowed down. Simultaneously, the optimization of the country’s overall industrial structure has become an essential goal of economic development. Among them, household consumption is an important link to ensure the stable and healthy development of the national economy and an important indicator to reflect residents living standards. China’s household consumption expenditure has © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, pp. 79–91, 2022. https://doi.org/10.1007/978-981-16-8660-3_9

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been on the rise, but from the perspective of the per capita consumption growth rate, the growth rate of China’s household consumption showed a downward trend, and its growth rate changed from 9.6% in 2014 to 8.6% in 2019. Under the influence of the COVID19 epidemic in 2020, its growth rate dropped to −1.6%. Among them, the increase of residents’ service consumption expenditure represents the improvement of residents’ consumption level and represents the improvement of residents’ consumption level and shows the improvement of residents’ consumption quality. Xu (2007), and other scholars have found through research that by 2018, its contribution rate will reach 61.5%, and the service consumption of residents will pull the growth of the tertiary industry; At the same time, it can obviously promote the upgrading of labor market structure and commodity market structure. In recent years, China’s residents’ service consumption expenditure has been steadily increasing, but its growth rate has a slowing trend, reaching 9.2% in 2019, lower than 12.43% in 2013. According to consumption theory, income constraint, credit constraint, and preventive saving motivation affect residents’ consumption. Kimball and Caballero (1990) pointed out that the improvement and development of the financial market system can reduce residents’ income uncertainty and precautionary saving. However, traditional financial services have some limitations, and there is an obvious barrier to get financial services. Since the United Nations put forward the concept of Inclusive Financing in International Microfinance Year in 2005, its development has gradually entered the public eye and played an increasingly important role. In recent years, with the development of the Internet, broadband, 4G network, and other infrastructure and the gradual deployment of 5G communication facilities, it has provided a better infrastructure foundation for the development of many Internet economies, and also created a new format which combines digital network services with financial services. Digital Inclusive Financing came into being and developed rapidly, attracting wide attention from all walks of life. Digital Inclusive Financing dramatically reduces the information asymmetry of financial services and improves the efficiency of financial services. At the same time, it dramatically improves the service of the financial industry to “long tail” customers, broadens the service boundary of financial services, and allows more people to enjoy financial services. In the background of the breakout of the “COVID-19 epidemic” at the end of 2019, under the leadership of the Communist Party of China and the joint efforts of all the people, China’s epidemic prevention and control have achieved staged success. In the “post-epidemic” era, the improvement of residents’ service consumption is an important driving force to stimulate economic recovery and maintain stable and high-quality economic development. Digital Inclusive Financing has distinct characteristics of the times and development prospects. As mentioned in “Report on Asian Financial Development in Boao Forum for Asia in 2020-Inclusive Financing”, in the post-epidemic era, its development and its impact on society have been paid more attention by all sectors of society. This paper hopes to explore the influence of digital Inclusive Financing, a new industry, on residents’ service consumption expenditure under this background. At the same time, according to the development characteristics of regional differences in China’s economic

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development, the heterogeneous mechanism of its influence is discussed Analyze and further analyze its influence mechanism; Therefore, from the perspective of stimulating residents’ service consumption level, it can provide some helpful reference for the development direction of digital Inclusive Financing.

2 Literature Review and Theoretical Basis 2.1 Stimulating Effect of Digital Finance on the Demand of Service Consumption 2.1.1 Improve Residents’ Spending Power As an important issue in economic research, residents’ consumption has been widely concerned by all sectors of society. Analyzed the impact of liquidity constraints on consumption under the framework of life cycle theory. With the continuous rise of the financial industry, the effect of finance on residents’ consumption has attracted wide attention of scholars. After that, Kuijs (2005), Meng (2003), Schmidt-Hebbel and Serven (2000) and other scholars studied the consumption behavior of residents in China. They found that the fact such as “the mobility of residents’ funds”, “the availability of market insurance industry”, “per capita disposable income” have a significant impact on residents’ consumption. Most scholars believe that finance has a positive impact on residents’ consumption. Meanwhile, with the rise of China’s Internet industry and the rapid construction of communication facilities, digital finance, as a new industry, has played an increasingly important role in people’s lives. Xie (2012, 2015) defined Internet finance from three perspectives: payment method, information processing, and resource allocation. On this basis, combined with the characteristics of digital finance, it can improve the growth of residents’ spending power through the following ways. (1) Compared with traditional financial institutions, digital financial services reduce the cost of market information collection, and therefore the cost of residents’ loans is also reduced, thus improving residents’ spending power by reducing liquidity constraints. (2) Digital financial insurance service approach. The popularity of digital insurance broadens the channels for residents to use insurance services and simplifies insurance transaction procedures, thus reducing transaction costs and increasing residents’ willingness to participate in insurance services. It reduced preventive savings and improved residents’ spending power. (3) Ways of digital financial management services. Digital finance has increased the types of financial services and reduced the barriers for people to obtain financial services. Among them, low-risk wealth management products such as digital currency Fund, which are widely used, have raised residents’ income expectations and increased residents’ spending power. 2.1.2 Improve Residents’ Willingness to Consume Services Payment convenience is an important feature of the development of digital finance. Li et al. (2019) found that digital finance can improve residents’ consumption by enhancing smoothing consumption. Other scholars verified the promotion effect of third-party payment on residents’ consumption and found the regional heterogeneity of its influence.

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From the data, since 2013, the scale of third-party payment in China has been rapidly increased, and by 2018, the scale of payment has reached 190.5 trillion yuan. Compared with the previous payment method of “cash transaction,” the digital financial payment process is more concise, which not only reduces the transaction cost of residents’ daily consumption but also improves the randomness and contingency of residents’ consumption and promotes residents’ consumption willingness. It is not difficult to see that the popularization of digital finance has reduced people’s sole cost. 2.2 Stimulating Effect of Digital Finance on the Supply of Service Consumption The improvement of the popularity of digital finance has a certain positive impact on the development of the market. On the one hand, the popularity of digital finance can reduce market transaction costs; On the other hand, it is beneficial to optimize the level of market structure. 2.2.1 Reduce Market Transaction Costs Digital finance can reduce market transaction costs by reducing the market transaction information and market transaction execution costs. Divided the measurement index of information cost into “price uncertainty cost” and “product information cost”. By using the extensive application of emerging digital technologies such as Internet resources and big data, the digital financial improved the efficiency of information exchange and reduced the cost of information exchange between the two parties In addition, because of its characteristics of relying on digitalization and network, digital finance saves construction cost and facility cost in the popularization process. From the perspective of financial market, when the “production cost” of financial products is reduced, it will inevitably attract more people to enter the financial market, improve the supply level of financial services, and improve the service consumption of the whole market. 2.2.2 Optimize the Market Structure Scholars such as Berger (2003), Cortina and Schmukler (2018) analyzed the positive effects of the development of digital finance on market development from the perspectives of enterprise financing cost and service efficiency of commercial banks. On this basis, digital financial services improves the construction of financial infrastructure. Meanwhile, it improves the overall consumption level of the region, indirectly affected the consumption habits of residents, and then improved the activity of the consumer market. 2.2.3 Literature and Theoretical Summary From the existing literature, many scholars focus on the impact of third-party payment on residents’ consumption by relaxing liquidity constraints. This part of the research mainly focuses on the promotion of digital finance on the overall consumption level of residents. The Digital Finance Research Center of Peking University released the “Digital

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Inclusive Financing Index” in 2017, which describes the development of digital finance. On this basis, scholars such as Li et al. (2019), Ren and Ge (2019), Jiang and Jiang (2020) have studied the impact of digital finance on residents’ consumption structure from the perspective of household consumption and heterogeneity research. However, this part of the research is still relatively limited, and the research on its influence effect and influence mechanism remains to be explored; In addition, this perspective pays more attention to the relative amount of different kinds of consumption expenditure of residents based on the difference of demand elasticity, while the perspective of residents’ service consumption pays more attention to the absolute amount. It is worth discussing and studying the impact of digital finance on residents’ service consumption expenditure. To sum up, this paper hopes to explore the theoretical basis of the influence of digital finance on residents’ service consumption expenditure and carry out empirical test; What is more, we aim to explore the influence of regional differences and residents’ income level differences on the heterogeneity of their service consumption expenditure; It also discusses theoretically the mechanism of the impact of digital finance on residents’ service consumption expenditure. This paper hopes to provide some marginal contributions in the following aspects: on the theoretical level, starting from the characteristics of digital finance, this paper analyzes the supply side and demand side of service consumption, respectively, and determines that digital finance can influence residents’ service consumption expenditure through both supply and demand sides; Further analysis of the heterogeneity of the impact provides a useful reference for the development direction and focus of digital finance; In the empirical study, this paper uses geographical distance as a tool variable, which effectively controls the reverse causality between digital finance and service consumption expenditure, and improves the credibility of the empirical results.

3 Research Design According to the above analysis, in order to study the influence of the popularity of digital finance on residents’ service consumption, We use provincial panel data to regress. Firstly, the measurement model is set. Because the data includes two cross-sections, i.e., region and time, this paper constructs a dynamic panel data model, and the model formula is shown in Formula 1: Cit = βi + βi1 Fit + βi2 ControlNit + μit

(1)

Where i = 1, 2… 31, representing the province, and T = 2011, 2012… 2018, representing the year. Cit means the consumption of residents F it means the development of digital finance in the i province (city, autonomous region) in t year. ControlN it means the control variable, representing the control variable of year t in the i province (municipality directly under the central government, autonomous region). 3.1 Variable Selection and Data Source According to the above analysis, the variable interpretation and data sources in this paper are shown in the Table 1.

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Symbol of variable

Data resource

Interpreted variable

The development of digital finance

aggreit

Peking University digital inclusive financing index

Explanatory variable

Residents’ service consumption

tscit

The average consumption expenditure in the sorts of follows: medical care expenditure, transportation and communication expenditure, entertainment, culture and education service expenditure, and other goods and services expenditure

Control variable

Income

incomeit

Average disposable income of residents

Age structure of population

Oldrateit

Proportion of population survey over 65 years old

Education level of population

eduit

Number of students in higher education per 100,000 people

Real interest rate

relrateit

One-year deposit interest rate *100 minus CPI

The explained variables come from the data published by Peking University Digital Inclusive Financing Index. The control variables refer to the research results of Mao et al. (2014), Zhao et al. (2018), and Yuan et al. (2009), and the factors affecting residents’ consumption are selected for control. The regress model is showing as followed: lntscit =βi + βi1 lnaggreit + βi2 lnincomeit + βi3 lneduit + βi4 lodrateit + βi5 relrateit + βi6 disit + μit

(2)

3.2 Descriptive Statistics and Correlation Test The descriptive statistics of variables are shown in Table 2. Among them, there is a big gap between the maximum value and the minimum value of residents’ service consumption expenditure. In the aspect of digital financial, The average value of the financing index is 5.39, the minimum value and maximum value are 4.74 and 5.93, respectively, and the absolute

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values of corresponding values are 115.1 and 377.73, respectively, which shows the development of digital finance in China. Table 2. Descriptive statistics of variables Variable label

Average

Standard deviation

Minimum

Maximum

lntsc

8.750

0.374

7.451

9.704

lnedu

7.981

0.296

7.228

8.760

lnaggre

5.396

0.254

4.746

5.934

oldrate

14.022

3.159

7.000

22.700

relrate

−0.039

57.810

−125

170

lnincome

9.972

0.363

9.184

11.069

dis

1.341

0.702

0.665

5.022

According to the relation number of variables, the correlation coefficients among the control variables are all less than 0.4, so it can be considered that the problem of variable autocorrelation among explanatory variables is relatively light. 3.3 Endogenous Analysis Given the macroeconomic research of digital finance on consumption, the problem of endogeneity is challenging to be satisfied. This paper discusses and analyzes the endogeneity of the study from the following aspects. Missing variables: There are many influencing factors on residents’ consumption. We used control variables to decrease the influence of missing variables. Further on, this paper uses panel data to minimize missing variables on the estimation results. Reverse causality problem: As the digital financial service industry belongs to the tertiary sector, the use of digital financial management, digital insurance, and other services by residents is “other consumption expenditure”. Therefore, the model may have a certain degree of reverse causality problem. This paper attempts to control the endogeneity of the model by finding suitable tool variables. As a new format, the development of digital finance has a significant correlation with the Internet ecology. Guo et al. (2017) found that the development of digital finance still has certain geographical constraints. Therefore, this paper draws lessons from the practices of Yi and Zhou (2018), Fu and Huang (2018), and uses the geographical distance between provincial capitals and Hangzhou as a tool variable to control the endogeneity of the model. On the one hand, Ant Financial Co., Ltd., as the pioneer of digital finance in China, has a high proportion in China’s digital financial market. The development of digital finance in China should be closer to the geographical location of Hangzhou and the higher the degree of digital finance development; In addition, considering the externality of instrumental variables, some scholars believe that distance will be affected by economic behavior but will not change with economic development. From the perspective of economic development, although Hangzhou is a relatively wealthy city in China,

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its economic orientation is a solid regional core city, and its geographical location with Hangzhou does not represent the level of regional economic development. Its correlation with residents’ consumption is weak, so it is considered that it can satisfy the externality.

4 An Empirical Study on the Influence of Digital Finance Popularization on Residents’ Service Consumption 4.1 Benchmark Hypothesis Test This paper uses short panel data from 2013 to 2018 to regress residents’ basic consumption and service consumption, respectively. Through the LM test, it is found that there is no individual random effect. Further, through Hausman test, it was found that the P value was more significant than 0.1. Thus, the random effect model was used for regression analysis. To sum up, Table 3 gives the benchmark regression results based on random effects and analyzes them according to the regression results. Table 3. The results of benchmark regression

lnaggre

(1) lntsc 0.749**

(2) lntsc 0.177**

(3) lntsc 0.155**

(4) lntsc 0.152**

(5) lntsc 0.152**

(6) lntsc 0.152**

*

*

(0.023)

(0.060)

(0.070)

(0.074)

(0.073)

(0.075)

0.888**

0.899**

0.894**

0.893**

0.891**

*

*

*

*

*

(0.102)

(0.103)

(0.100)

(0.104)

(0.131)

0.058 (0.058)

0.059 (0.059)

0.058 (0.059)

0.059 (0.058)

0.002 (0.003)

0.002 (0.004)

0.001 (0.004)

0.000 (0.000)

-0.000 (0.000)

lnincom e lnedu

oldrate

relrate

0.004 (0.043)

dis

_cons

4.711**

-1.065

-1.516*

-1.471*

-1.462

-1.449

(0.735) 186 0.8614

(0.894) 186 0.8549

(0.873) 186 0.8559

(0.927) 186 0.8560

(1.075) 186 0.8550

*

(0.149) 186 0.5152

N r2 Wald value p 0.000 0.000 0.000 0.000 0.000 Standard errors in parentheses* p < 0.10, ** p < 0.05, *** p < 0.01

0.000

In this paper, the influence of missing variables on regression results is reduced by adding control variables step by step. The regression results are shown in Table 3. From the regression results, digital finance has a significant positive impact on residents’ service consumption expenditure. In the regression with only digital financial development indicators, the coefficient is 0.749, which is important at the level of 1%. After adding control variables, the regression coefficient drops significantly, proving that the selection of control variables is effective.

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4.2 Endogenous Test According to the above analysis, the instrumental variable method is used to decrease the influence of reverse causality. This paper chooses the distance between the provincial capitals and Hangzhou as the instrumental variable (IV1). Meanwhile, using the practices of Cang and Li (2012) for reference, the lag period of the digital Inclusive Financing index is used as the instrumental variable (IV2) for regression. In terms of model selection, Yi and Zhou (2018) mostly use the 2SLS method for regression. The f value of the first stage and the second stage’s wald test are larger than their critical values, so there is no weak instrumental variable problem. The regression results are shown in Table 4. Table 4. The results of instrumental variable (1) IV 0.261** (0.111)

(2) IV2 0.863*** (0.299)

lnincome

0.848*** (0.054)

0.595*** (0.137)

lnedu

-0.114*** (0.042)

-0.248*** (0.077)

oldrate

0.002 (0.004)

-0.008 (0.006)

relrate

-0.000 (0.000)

-0.001* (0.000)

dis

-0.048** (0.019)

-0.067*** (0.022)

_cons

-0.168 (0.539) 155 0.861 961.35 0.000

0.355 (0.612) 186 0.807 844.63 0.000

lnaggre

N r2 Wald value p

From the regression coefficient, there is no structural change with the original results after adding instrumental variables, which shows that the original regression results are basically reliable. It is worth noting that the regression coefficient has changed greatly after adding the instrumental variable of the distance between the prefecturelevel cities and Hangzhou. Compared with the benchmark regression, the coefficient has expanded four times. The research shows that the instrumental variable often “magnifies” the coefficient of empirical results, and there may be some differences in the order of magnitude (Jiang 2017). The significance of this amplification effect is more reflected in the elimination of interference variables, rather than a completely unbiased estimation because there will be a “local average intervention effect” when using tool variables to deal with problems (Fu 2018). Specific analysis of this paper can be understood as the closer it is to Hangzhou, the greater the promotion of consumption by the development of digital finance, which is in line with economic intuition.

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4.3 Heterogeneity Analysis Furthermore, the heterogeneity of digital finance development on residents’ service consumption expenditure is analyzed. The development of digital finance includes three aspects: coverage, depth of use, and the degree of digital support services. By analyzing the three indicators, we can explore the heterogeneous influence of digital financial service structure on residents’ service consumption expenditure. To sum up, the following equation is constructed for regression analysis. tscrit = βi + βi1 lnaggreIit + βi2 lnincomeit + βi3 lneduit + βi4 oldrateit + βi5 relrateit + μit Through the houseman test, it is found that the random effect model is used for the “coverage breadth” and “digitalization degree” of digital finance, and the fixed effect model is used for the “use depth” index of digital finance. The regression results are shown in Table 5. Table 5. Results of heterogeneity analysis of the digital financial structure

lndigi

coverage lntsc 0.329** (2.05) -

lndepth

-

-0.111 (-1.07) -

lnedu

0.115 (1.35) 0.001 (0.16) -0.000 (-0.30) 0.717* (1.72) 0.049 (0.75) 0.202 (1.21) 186 0.146

0.093 (1.09) 0.000 (0.10) -0.000 (-1.00) 0.943** (2.27) 0.030 (0.45) -1.184 (-0.28) 186 0.9507

lncover

oldrate relrate lnincome

_cons

digital lntsc -

depth lntsc 0.129** (2.25) 0.061 (1.03) 0.001 (0.35) 0.000 (0.76) 0.867*** (6.62) 0.011 (0.24) -1.103 (-0.94) 186 0.911

N r2 N r2 0.5152 0.8614 0.8549 Wald value 14.89 25.12 8.8 p 0.000 0.000 0.000 Standard errors in parentheses* p < 0.10, ** p < 0.05, *** p < 0.01

From the empirical results, the coverage and depth of digital finance significantly impact residents’ service consumption expenditure, with regression coefficients of 0.329 and 0.129, respectively, and coverage has the most significant impact. At present, the influence of digitalization degree on residents’ service consumption expenditure is not apparent enough.

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4.4 Robustness Test Based on the above research, the robustness of the above results is tested. This study uses short panel data, and the problem of sequence autocorrelation is generally not obvious. Chen (2010). Therefore, by replacing the explained variables, this paper verifies the effect of the popularization of digital finance on residents’ service consumption expenditure and then illustrates the robustness of the test. In this paper, residents’ service consumption expenditure is replaced by service consumption rate, which refers to the ratio of service consumption expenditure to regional GDP. The increase in consumption rate proves that residents’ consumption expenditure is more significant. The specific calculation method divides the residents’ service consumption expenditure described above by the regional per capita GDP. Since this data is proportional, the logarithm processing is not carried out, and the regression equation is constructed as follows: tscrit = βi + βi1 lnaggreit + βi2 lnincomeit +βi3 lneduit + βi4 oldrateit + βi5 relrateit + μit

(3)

“tscr” means the consumption rate. The result of the regression are shown as Table 6. Table 6. Results of robustness test (1) tscr 0.056*** (4.04) lnincome -0.057*** (-2.84) lnedu 0.018 (1.21) oldrate 0.001 (0.73) relrate -0.000 (-0.41) dis 0.016* (1.69) _cons 0.219 (1.28) N 186 r2 0.1447 Wald value 14.12 0.000 P Standard errors in parentheses* p < 0.10, ** p < 0.05, *** p < 0.01 lnaggre

5 Conclusions and Suggestions This paper analyzes the popularity of digital finance and residents’ service consumption expenditure from a realistic perspective. Then we make a theoretical analysis of the impact of digital finance on residents’ service consumption expenditure combining with the theoretical basis and empirical data. Finally, determines the impact of digital finance on residents’ service consumption expenditure according to empirical test. Based on the above research, the conclusion of this paper is summarized here.

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In theory, the development of digital finance promotes demand by influencing residents’ ability and willingness to consume service and promotes service consumption supply by reducing market transaction costs and optimizing market structure, thus increasing residents’ service consumption expenditure. In the empirical aspect, (1) the improvement of the popularity of digital finance in China has a significant positive impact on the increase of residents’ service consumption expenditure; (2) The influence of digital financial structure on the growth of residents’ service consumption is heterogeneous, in which the coverage of digital finance is the most critical factor to improve residents’ service consumption expenditure, and secondly, residents’ use of digital finance has also played a prominent role; To sum up the above, in the current development stage of China, the popularization of digital finance has a significant positive impact on residents’ service consumption expenditure. Expanding the coverage of digital finance and promoting residents’ use of various financial services are important development directions of digital finance development. 5.1 Suggestions The rapid development of China’s digital financial market has a specific impact on residents’ living, which has a significant role in promoting the improvement of residents’ service consumption expenditure, and has an important impact on the progress of residents’ living standards and the upgrading of industrial structure in China. To sum up, based on the research conclusions of this paper, some relevant suggestions are put forward. From a regional perspective, the development speed of digital finance popularization in the central and western regions needs to be improved. Regional governments should provide the infrastructure foundation for the popularization of digital finance in these regions by strengthening the construction of network communication infrastructure. Simultaneously, to improve residents’ acceptance of digital finance, the government can actively guide residents to strengthen their use of digital finance using media publicity and policy inclination. In addition, we will vigorously improve the innovation of digital financial services, and make use of new Internet platforms and other channels to enhance the degree of integration between digital finance and residents’ service consumption. At present, digital technology is widely used in China. Digital finance should make full use of various technical means to improve the innovation level of financial services. The government can improve the innovation willingness of digital financial service providers and enrich the types of financial services through various policy means.

References Xu, H.: Study on regional differences of service consumption of Chinese residents. Hunan University (2007) Kimball, M.S.: Precautionary saving in the small and in the large. Econometrica 58(1), 53–73 (1990)

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Caballero, R.J.: Consumption puzzle and precautionary savings. J. Monet. Econ. 25, 113–136 (1990) Yuan, Z., Xia, L., Pan, X.: Changes of consumption structure of urban residents in China and its causes. World Econ. Papers 2009(04), 13–22 (2009) Mao, R., Xu, J.: Differences in consumption structure and industrial development. Popul. Res. 38(03), 89–103 (2014) Kuijs, L.: Investment and saving in China. Policy Research Working Paper Series, pp. 1–20 (2005) Meng, X.: Unemployment, consumption smoothing, and precautionary saving in urban China. J. Comp. Econ. 31(3), 465–485 (2003) Schmidt-Hebbel, K., Servén, L.: Does income inequality raise aggregate saving? J. Dev. Econ. 61(2), 417–446 (2000) Xie, P., Zou, C.: Research on Internet financial model. J. Financ. Res. 12, 3–12 (2012) Xie, P., Zou, C., Liu, H.: Basic theory of internet finance. J. Financ. Res. 08, 1–12 (2015) Li, J., Wu, Y., Xiao, J.J.: The impact of digital finance on household consumption: evidence from China. Econ. Model. 86, 317–326 (2020) Jiang, H., Jiang, P.: Study on the improvement of residents’ consumption level and modern finance and economics. J. Tianjin Univ. Finan. Econ. 40(10), 18–32 (2020) Ren, X., Ge, J.: Financial development, income structure and consumption structure. Macroeconomics 01, 30–36+64 (2019) Berger, A.N.: The economic effects of technological progress: evidence from the banking industry. J. Money Credit Bank 35(2), 141–176 (2003) Cortina Lorente, J.J., Schmukler, S.L.: The Fintech revolution: a threat to global banking? Res. Policy Briefs, 1–4 (2018) Guo, F., et al.: Measuring the development of digital inclusive financing in china: index compilation and spatial characteristics. Working Papers of Digital Finance Research Center of Peking University (2021) Yi, X., Zhou, L.: Does the development of digital inclusive financing significantly affect residents’ consumption—micro-evidence from Chinese families. J. Financ. Res. 11, 47–67 (2018) Fu, Q., Huang, Y.: The heterogeneity influence of digital finance on rural financial demand—evidence from China’s household finance survey and Peking University digital inclusive financing index. J. Financ. Res. 11, 68–84 (2018) Jiang, W.: Have Instrumental Variables Brought Us Closer to the Truth. Social Science Electronic Publishing (2017) Chen, Q.: Advanced Econometrics and Stata Application. Higher Education Press (2010)

Analysis of Characteristics of Market Form of Entertainment Products in Modern Society Lu Yu(B) National Academy of Economic Security, School of Economics and Management, Beijing Jiaotong University, Beijing, China

Abstract. This paper analyzes the special development mode of entertainment industry in the industrialization era and the new characteristics different from the traditional cultural industry by comparing the data of modern entertainment industry. This paper points out that with the support of modern industrialization, the market form of entertainment products market has been very different from the market form of traditional cultural products, and its market model has changed from monopoly competitive market to complete competitive market. Besides price, the market demand side also includes time, topic and so on. The constraints in consumer decision-making also change from capital constraints to time constraints. Keywords: Entertainment industry · Monopoly competition · Time constrain

1 Introduction The analysis object of this paper is the entertainment industry, rather than the cultural industry. Although in many areas, the relationship between these definitions is that the latter is inclusive of the former. But this paper’s domain a simple entertainment product in the industry. It aims at “commercial” products, such as commercial films, TV shows, video games, theme parks and so on [1]. At the information era, the purpose for which these products are manufactured is profit, rather than artistic or heritage cultural, such as souvenirs (refrigerator stickers, postcards) or high-end art auctions (paintings, sculptures). In other words, the market for these products is limited to products that can be mass-produced and entertaining with the support of modern technology, rather than cultural products with historical significance. These products’ design, creativity and production separation, production process industrialization characteristics will change the market form. From the view of micro-economic market model, there are two reasons for this classification: First, from the view of market supply, the individual manufacturers, such as writers, painters or composers are workshop-type production, the type of these artists is Independent working type. So their products has the ideological bearing attribute of cultural. Cause the uniqueness of human thought, independent production model is difficult to use industrial market model for analysis and evaluation. Therefore, the market form is © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, pp. 92–100, 2022. https://doi.org/10.1007/978-981-16-8660-3_10

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inclined to “monopoly market” by the above production mode. The production of modern entertainment is completed industrial production, which is the basis of this paper. Secondly, from the view of market demand, the consumption purpose of “cultural products” can be diversified. But according to the consumption purpose of entertainment products, the reason is analyzed in detail in the third part of this paper. In short, the particularity of such consumption decisions makes such market forms different from traditional cultural markets. Therefore, with the support of the above two conditions, this paper analyzes the market changes of entertainment products in modern cultural industry.

2 Data This section selects five data for analysis. The first one is toys (non-durable goods) from 1959 to 2009 as the proportion of personal consumption in the total amount of leisure and entertainment. The second is the American manufacturers of home video games and traditional toys shipped in dollar terms between 1980 and 2009. The third one is Estimated spending per person on traditional toys in 2009 by age. The table one is approximate number of classes per year between Disneyland and Universal Studios under amusement park and theme park content, and the table two is composition of the audience. This paper takes five data as an example to illustrate the separation and characteristic development of entertainment products market and cultural market in traditional cultural market supported by modern technology (Figs. 1, 2).

Fig. 1. Percentage of toys as personal consumption in total leisure and entertainment expenditure from 1959 to 2009, USA

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Fig. 2. U.S. manufacturers shipments of home food games and toys sales 1980–2009

Fig. 3. Estimated spending per person on traditional toys in 2009 by age Source: U.S. Department of Commerce, U.S. Census Bureau, National Center for Health Statistics, Mattel. Table 1. The number of visitors to major theme parks from the year of opening to 2009 Disneyland Location

Open year

Estimated number of visitors (million/1 Year)

Florida

1971

43.0

California

1955

20.4

Paris

1992

5.5

Hong Kong

2005

4.6

Tokyo

1983

25.8

Florida

1990

10.4

California

1964

4.6

Osaka

2001

8.8

Universal studios

Source: Amusement Business

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Table 2. The composition of the audience [2] Alone

4%

Lover

40%

Friends

32%

Family

24%

According to the above Table and Fig, the following conclusions can be drawn (Table 1 and 2): 1. In the consumption of home entertainment, also known as indoor entertainment, the proportion of the consumption of toys is decreasing year by year. But shipments of video games rose at the same time as shipments of traditional toys. The increase in product shipments means that the product market is developing steadily, but the decrease in the proportion of consumption of toys means that the consumption amount that should have been spent on toys has been taken up by another form of entertainment. Therefore, from the comparison of these two data, it can be inferred that in the household entertainment consumption composition, the consumption amount of traditional toys is occupied by the new electronic games and other forms of entertainment. 2. For theme parks: Within the same region and in the same period of time, the sales have been highly stable since the parks opening. In both California and Florida, Disneyland has nearly four times as many annual visitors as Universal Studios. However, it should be noted that since Disneyland is aimed at family consumption, it means that the consumption structure of Disneyland is composed of two parents and children visiting the park together in generally.Universal Studios, on the other hand, is more for individuals and their companions to play, that is, in statistics to play by individuals. 3. In the consumption of film entertainment, consumers are more inclined to social consumption, and the consumption behavior for the purpose of enjoying the film alone is less. It is only 4%. In other words, it can be seen from this example that, consumers are more inclined to consider the comprehensive consumption purpose rather than the single entertainment purpose in most entertainment activity centers with social attributes.

3 Analysis Before the author go into the detail, it should be explained that analyses about this paper are based on a hypothesis after. It is the consumers’ (include potential consumers) entertainment time it can control remains basically unchanged in a certain period of time in ten year. And this assumption is supported by the fact from McGrattan & Rgoerson argued in 1995, they claimed “the overall annual average working hours of American workers after World War II did not change significantly [1]7 .” Because the analysis of

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this paper mainly tends to individual entertainment decision, so this hypothesis has its theoretical value and accords with the empirical support. [3]. Based on this fact, the first data above shows that, the proportion of personal consumption in total leisure and entertainment expenditure decreased year by year between 1959 and 2009. On the other side, It means The expenditure of other entertainment products occupies the part of traditional toys in the personal entertainment consumption expenditure. By comparing other data, the shipments of home video games and toys from 1980 to 2009 can be shown that the shipments of both are relatively uniform. It means the shipments of video games are gradually equal to the shipments of toys with the development of technology. [1]258 And also according data three, the statistics in Fig. 3, after increasing entertainment forms, such as television, the proportion of expenditure per person on movies decreases, but the proportion of expenditure on television increases. It can be seen that the proportion of individual consumption of entertainment products increases gradually in modern society. But the proportion of various subdivision entertainment products decreases and tends to balance. It can be concluded that although the mainstream view of the academic community was to regard the market form of the entertainment industry as monopolistic competition. The reason of above is cultural attributes contained in the form of entertainment make its products different. But things have changed. This paper compares the data of comparison of toys, amusement parks and film and television market. It shows the premise of consumer consumption decision-making time constraints in modern household. Under the constraints of time, product differentiation of entertainment products has no obvious influence on modern family entertainment consumption decisions. In other words, cultural factors are not the decisive factor when consumers make entertainment consumption decisions. Consumers are more concerned with “price, availability, sociability” and other non-cultural factors. The main constraint faced by consumers is time constraint. If this argument is expressed in a formula, then [4]: wT = (PX + w/ρ)Qx + Py Qy Where, w is the wage rate, T is the Time, Qy is other products’ the quantity demanded for other consumer goods, x means some form of entertainment. But it’s important to point out that Qx is not simple quantity of entertainment. It is a kind of entertainment product and entertainment time comprehensive embodiment. (PX + w/ρ) is the price of this composite product. The ρ means consumption density, which is the number of entertainment per unit of time. It is important to note that the variation of parameters in this formula is based on the unit linkage type.If the daily consumption pattern is calculated, then T is less than or equal to 24, if the annual consumption pattern is calculated, then T is less than or equal to 365 (OR 366), and so on. If the optimal selection in economics is assumed to be the condition, the above formula has the following variations: Qx = wTw / (2px), (Px and Tw are constants.) And Qx = wTρ/ (2ρPx + w), (Px , T and are constants.)

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However, the optimization decision is not the main scope discussed in this paper, so we will not repeat the formula deformation here. The reasons for the conclusion above are: 1. From the point of produce side, the production mode of entertainment industry is more inclined to factory production with the support of modern production technology and management technology. In modern society, the production mode of entertainment industry has developed into the industrialization production mode from creation to mass production line. The cultural connotation of the product is determined by many people rather than one person, such as comic, television and film script writers. Further, the members of this screenwriter group can be replaced at any time according to the requirements of the company or managers. The product copyright belongs to the company, not the individual creator, and the copyright can be transferred as the property. For example, DC or Marvel’s superhero copyright. Therefore, under the premise that the connotation of product culture has been established, there is no need for individuals to play too much creativity, that is, no need for directors and crew to join too many personal styles) and so on. Therefore, under the influence of the above factors, the production and sales process of entertainment industry is relatively stable, and the content is solidified, so it will cause the stability of market sales. In other words, the so-called “creation” becomes “production [4].” In contrast, the production mode of traditional cultural industry still retains the characteristics of workshop production. For example, in the cultural industry, the traditional “music”, “painting” and other art industries, its producers are still individual artists (a few use group cooperation model), the copyright of the work is owned by the author, the competitiveness and difference of products mainly come from the author’s personal style, the production of basic elements mainly depends on the author’s personal ability, until the completion of the first edition of the product, the subsequent publishing, distribution, publicity and other series of work into the industrialization, system production stage. Therefore, in the early cultural product market, such as the book market, its product market form is monopolistic and competitive, the product difference is very strong, and the direction of the demand side is also very clear, when one author’s work is selected, It is not easy to choose another author’s work. 2. From the view of market demand, The purpose of consumption is not to enjoy cultural edification, but to obtain spiritual pleasure. Indeed, because of the relationship between culture and human spirit, no spiritual pleasure can be divorced from cultural attributes. But the consumer standard of entertainment consumption is different from that of cultural consumption in the cultural quality of the product. That is, the purpose and constraint factors are different. Different consumption purposes will lead to different decision-making styles of consumers. This implies a difference in the elasticity of demand too. Such as “movies”, especially “entertainment movies”, a large number of consumers choose the behavior of film consumption not to appreciate the purpose but to socialize [5]. That means the purpose of the consumers is doing something with family and friends, not the spiritual relaxation and stimulation acquired by watching movies. And from an economic perspective, watching movies together is the least costly behavior. Because compared to games (which require learning

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rules and taking into account personal preferences), amusement parks (which, in addition to choosing the theme of the park, consume a lot of energy as an outdoor activity, which is also the cause of divergences) and certain exhibitions (which begin to approach serious cultural products and decrease social feelings). Cinemas have the characteristics of not knowing the specific content before watching movies, less physical consumption and the same objective product quality for all people. After combining the above two characteristics, in the market model of microeconomics, It can be concluded that the form of entertainment product market is competitive market, even PCM. Because in the entertainment market, consumer demand purpose does not tend to a single entertainment product. The main factor of consumption constraint is time constraint. Two points above are differences between cultural products and ordinary products. Generally, since the demand for daily consumer goods (clothing, food, housing, travel services) is affected by geographical restrictions and industrial layout restrictions, consumers in the real world market can not make too many choices. In other words, There are limited alternatives in real market. However, the variety of products in the entertainment product market is enhanced and can be substitutes for another with the support of modern technology. These technology is especially the popularization of modern electronic communication technology. The most obvious of these technologies is the spread of modern electronic communication. For example, the decline of traditional toy sales is the increase of consumption of new entertainment products, while the decline of film consumption is the increase of television consumption. In the consumption constraint, time is more important than money, that is, in the same time, if you choose the entertainment A, you must give up the B. This assertion is a common sense assertion. Generally, consumers who have money to spend on entertainment should not face monetary constraints.Cash-strapped families, on the other hand, will directly reduce entertainment spending.

4 Conclusions To sum up, based on the data of toy market, film market and theme park market, this paper analyzes the personal consumption decision-making model for entertainment products and concludes the following conclusions: 1. In the modern world, relying on technical support, the entertainment industry has developed characteristics that are different from the traditional cultural industry. This kind of characteristics have been analyzed in the third part of this paper. Therefore, the market form of entertainment has changed from traditional monopoly competition to complete competitive market. 2. Due to the development of modern industrial technology, the entertainment products are homogenized rather than differentiated. Therefore, although modern entertainment products choose different cultural motifsin in the creative stage, from the perspective of industrial products, their homogenized content will be increasingly enhanced, and these products in the entertainment market can be substitutes for each other eventually.

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3. About the consumption constraint of entertainment products, the main factor is time rather than money. Most consumers who can afford on entertainment need to consider time, not money, as the core spending factor. Therefore, the main constraint factor of entertainment consumption is time. In view of the above characteristics and the changes in the form of the entertainment product market, the author gives three suggestions. 1. From the broad sense of cultural market, the market form is still in monopolistic competition. In other words, only the fans of a certain “serious culture” or the products which cultural attribute is far higher than the entertainment attribute can make the cultural market form become monopolistic competition market. For example, a consumer will not buy law textbooks when he cannot afford economics textbooks and intends to acquire economic knowledge from law textbooks. On the premise of providing products with entertainment products, expect some extreme supporters, consumers will inevitably choose another type of entertainment products as substitutes when the costs rise. Therefore, producers should make clear their own competitive market form. In the current entertainment market, In the current entertainment market, manufacturers should accept these facts. The production of entertainment products should focus on reducing production costs and increasing product quality rather than enhancing product features. If manufacturers solidify their thinking and regard the market form as monopolistic competition, it will inevitably damage the market vitality in the long run. On the other hand, producers or suppliers need to redefine the market if they want to emphasize the monopolistic competitive in the market. Then they need to redefine the market. From this point of view, “fans economy” can be chosen, and it is a development direction that. Because fans of specific entertainment products will consider such entertainment products irreplaceable when they making consumption decisions. This is different from impulse buying decisions, but a special decision that arises from cognitive differences. This recognition is for product attributes. In fandom, the market for such products tends to be a complete monopoly. However, it needs to be pointed out that this direction is not conducive to the completion of corporate social responsibility. In some sense, the social image of enterprises will decline along with the development of the fan economy of their products, resulting in additional moral costs. And for enterprises, moral cost, or moral hazard, it can easily be translated into direct losses. 2. As consumers on the demand side of the market, when making consumption decisions on entertainment products, they should prevent manufacturers from advertising to strengthen the uniqueness of entertainment products. Consumers should be clear about the purpose of consumption and prevent excess consumption. In other words, when consumers make consumption decisions, they should first make clear their own positioning. This is a qualitative cognition. That is, I am consuming “entertainment” rather than “cultural consumption”. Although the scope of above is the relationship between inclusion and inclusion. But, in the realm of consumption behavior, entertainment consumption is mainly for the purpose of obtaining a sense of pleasure and spiritual release. “Obtaining information” and “educational purpose” are not the important purposes of entertainment consumption, even not the purposes of

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entertainment consumption. On the contrary, among the purposes of cultural consumption, “obtaining information” and “educational purpose” are usually the main purposes. This also proves once again that entertainment products can be substitutes for each other in the entertainment market because the purpose of entertainment consumption is more simple. But in the market of cultural products, the substitutability of cultural products is very weak.

References 1. Vogel, H.L.: Entertainment Industry Economics (Updated 8e) A Guide for Financial Analysis, 8th , China Renmin University Press, Beijing (2013). (01): 1, 7, 258 2. Qi, Y., Changqi, C., Huawei, Z., Wang, Z., Guoqun, F.: Affection or Understanding the Reason? Power products for the consumer decision-making. Influence nankai Manage. Rev. 1–26 (2021). http://kns.cnki.net/kcms/detail/12.1288.F.20210416.1630.030.html 3. Yaqin, F.: Investigation and analysis of film consumption in cinema. Film Art 03, 20–24 (2004) 4. Qianlong, Q., Bihu, W.: Leisure consumption under the constraint of leisure time and its growth: the importance of leisure consumption to economic growth. J. Hangzhou Normal Univ. (Social Science Edition) 31(05), 89–94+99 (2009) 5. Li, Y.: Research on Audience Consumption of High-box Office Commercial Films in Chinese Film Market since 1995. Chinese National Academy of Arts (2007) 6. Jin, R.: Motion Picture Association of America released the 2020 Cinema and Home Entertainment Market Report. China Film News, 31 Mar 2021. (013) 7. Min, L.: A Study on Network Literature in the Context of Cultural Industry. Science Press, Beijing, p. 88 (2017) 8. Wenqian, W., Huaibin, L.: Review and prospect of pleasure research in consumer domain. Bus. Econ. Res. 03, 34–37 (2021). (in Chinese)

Social Relationship Network Within Publishing Industrial Cluster Shouxian Liu(B) and Xinyi Gu School of Economics and Management, Beijing Institute of Graphic Communication, Beijing, China [email protected]

Abstract. Cluster carries out an essential effect on development of industry in knowledge economy. And in order to achieve sustainable competitive advantage in publishing industry, the key elements are concentration of creative activities, cooperative network of relationship amongst proximity firms/individuals and framework promoting innovation. Based on examining components of network of publishing industrial cluster, this study classifies publishing industrial cluster into three types: spontaneously specialization, specialization with key companies leading, and specialization with external investment leading. And then, with sociology perspectives, this paper analyzes the embeddedness and social relation network in publishing industrial cluster. And finally, we propose some measures on mechanism of influencing on innovation of publishing industrial cluster by social relation networks. Keywords: Publishing · Industrial clusters · Social relation network

1 Introduction Industrial cluster is one of the most significant economic characteristics of industrial growth in developed countries in the world. Now the academic research on the concept of industrial cluster is very mature. The spatial concentration of networked institutions and enterprises in the industrial sector is the basic feature of clusters, Among them, production and service enterprises cooperate along the value chain, and maintain a balanced relationship between cooperation and competition. The potential development model of digital publishing industry is Conglomeration. So far, there are 12 national digital publishing bases, including Zhangjiang in Shanghai, Chongqing, Hangzhou, and etc. In these publishing and media industry bases, the industrial agglomeration effect has begun to appear, the base has developed well, and has initially formed its own industrial development characteristics, and diffusion and convergence effects are produced. For example, Shanghai Zhangjiang NDPB has gathered more than 400 digital publishing companies, established technical public service institutions and service centers for registration and trade of copyrights, and achieves RMB 20 billions a year. In addition, Chongqing national digital publishing base relies on its calculating technology advantages and is characterized by “cloud” technology. © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, pp. 101–106, 2022. https://doi.org/10.1007/978-981-16-8660-3_11

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Compared with internationally developed creative industry clusters, although these publishing industry clusters have played a role in promoting industrial development, there is still a large gap in cluster innovation network, interaction and cooperation between enterprises, diffusion of technology and knowledge, integrated innovation ability and so on. The development model of some clusters is not clear. So fluent knowledge flow, perfect diffusion effect and integrated innovation, emphasizing and paying attention to the role of universities around clusters, are all feasible choices to improve the innovation ability of participants. Based on previous research, the feasible choice to improve the innovation ability of participants is to emphasize and pay attention to the role of universities adjacent to publishing industrial clusters [1]. At present, 12 national digital publishing bases are located in economically developed areas with rich science and education resources. For example, Shanghai’s Zhangjiang NDPB is very close to dozens of famous universities such as Fudan University. The same is true for other NDPB: Xi’an NDPB is near many research institutions, such as Xi’an Jiaotong University, Hangzhou NDPB is not far from Zhejiang University, This is also the case in Beijing and Tianjin. Therefore, We need to explore the role of universities adjacent to publishing industrial clusters and put forward some measures on how to improve the effect of knowledge innovation and diffusion in universities. In this study, the goals are consisted of four components. Firstly, we examine the components of network of publishing industrial cluster. Then, secondly, we have defined three types of publishing industrial clusters: spontaneously specialization, specialization with biggish companies leading, and specialization with external capital leading. Thirdly, this paper analyzes the embeddedness and social relation network in publishing industrial cluster with sociology perspectives. Finally, some countermeasures are set up to enhance establishment of innovative network of social relation in publishing industrial cluster.

2 Network Structures of Publishing Industrial Cluster Industrial cluster refers to the geographical cluster of enterprises and related institutions connected through public activities and complementary activities in a specific industrial field. Porter believes that clusters are “geographic concentrations of inter-connected companies, specialized suppliers and service providers, firms in related industries, and associated institutions (e.g. universities, standard agencies, and trade associations) in particular fields that compete but also cooperate” [2]. The publishing industry forms industrial clusters through industrial division of labor and the extension and expansion of the upstream and downstream of the value chain. The enterprises within the industrial cluster are engaged in a certain link of the industrial chain. There are two main formation modes: One is that there are market opportunities in the publishing industry, and the subjects and resources in the cluster spontaneously form a new industrial chain with interests and capital as the link; The other is formed by external force, For example, when there is the intervention of local governments or multinational corporations. This model often has two stages, the initial stage is driven by administrative instructions, and the later stage has aggregation effect. A relatively perfect publishing industry cluster should include the following elements (see Fig. 1).

Social Relationship Network Within Publishing Industrial Cluster Creative firms

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Bookstores

Traditional publishing entreprisess

Governments

Capital suppliers

Direct sale

Talents

Small-middle enterprises

Leading cluster firms

Digital publishing entreprises

Copyright trade Derivative products

Paper mills

Printing entreprises

Culture exchange & exhibition

stationery

CD copier University

Research

Intermediary

institutions

organizations

Logistics entreprises

Professional training

entertainment

Fig. 1. Components of publishing industrial cluster.

3 Types of Clusters and Specialization The previous definition of cluster in this paper is general, Several potential relationships between enterprises will lead to some conceptual confusion of cluster structure. In order to avoid this conceptual confusion, some researchers have studied the structural dimensions of agglomeration enterprises or clusters and distinguished them. Shuaishuai Li and Suyang H (2019) described the difference between the main vertical cluster (representing all stages of the supply chain) and the main horizontal cluster (mainly composed of competitors and competitors) [3]. Jacobs and de Man (1996) extracted six dimensions that the structure and activity basis of enterprise geographical cluster, namely horizontal, vertical, lateral, technological, focal and network quality [4]. Dimension is the first step to improve the conceptual clarity of cluster structure. It does not mean “type”, but the basic dimension that can be used to identify the cluster type. According to the six dimensions proposed above, A large number of direct competitors, adjacent stages in the supply chain, or related industries from common resources or technology base may be the characteristics of clusters, In addition, it may not be affected by the presence of clusters. The following section classifies clusters into three types, spontaneously specialization, specialization with core companies leading, and specialization with external investment leading, using the terminology of Maskell (2001) in describing cluster origination, structure and specialization of network. Type 1: clusters characterized spontaneously specialization. A large number of middle-small publishing enterprises concentrate on regional area, strengthening diffusion effect of technical and human resources. Agglomeration of SMEs in publishing industry characterizes tightly interaction among SMES, flexible production system and loose ties with partners outside cluster. Due to concentrating spontaneously, these cluster SMEs, embedded with local regional culture and relation network, build human resources inflow and outflow within cluster.

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Type 2: clusters characterized specialization with success dominant companies leading. The clustering of publishing firms in special area results from the agglomeration of mass middle-small size publishing firms centering on one or more success dominant enterprises. Responding to different types of dominant publishing enterprise, there are two types of cluster of specialization with success dominant companies leading. The first type characterizes vertical interaction between SMES and big firms, respectively dominant publishing firm taking up content and creativity supply and SMEs engaged in technical design, and picture specialization. The second type characterizes that flexible production system and loose ties with partners outside cluster. Type 3: clusters characterized specialization with external investment leading. In some cases, the clustering of publishing firms in a particular location is a function of proximity to an original large multi-national enterprise (MNE), a focal entity, For example, the tourism or entertainment cluster, The cluster has been developed to serve Disney World users near Orlando, Florida, and financial services near the New York City stock exchange (Porter, 1998). In the above examples, clusters are formed by using the vertical relationship between buyers and suppliers of MNE. The passage of time, the formation or migration of other suppliers to the cluster, these factors make the cluster begin to show a horizontal structure (Jacobs and de Man 1996), In some cases, the growth of the horizontal cluster of suppliers may be constrained by the size of MNEs’ opportunity. Commonly, local publishing cluster is a mixture of several types mentioned above. For example, Zhongnan NDPB can be characterized as spontaneously specialization or specialization with dominant firms leading, such as Zhongnan Media, Green Apple, Huasheng Media and so on. And with size of cluster firms larger, Zhangjing NDPB shifts from type I to type II gradually.

4 Embeddedness and Relation Networks Within Publishing Industrial Cluster Granovetter’s research on the ubiquity of social embeddedness in economic exchange (2015) was is an important pioneer in the concept of network governance and social capital. There is a simple but key regularity in economic exchanges:” “Most behaviors are closely related to interpersonal networks” [5]. This is regularity very easy to see, but it is also easy to ignore, Granovetter’s opinion comes from this regularity. Granovetter believes that embeddedness can be divided into two types: relational embeddedness and structural embeddedness. Rooted in Granovetter’s original conceptualization of embeddedness, this broader view makes explicit the distinction between what Granovetter (1992) labels structural and relational embeddedness—a distinction essentially between the configuration of one’s network and the quality of those relationships [6]. The structuralist concept of publishing industry cluster focuses on the advantages given by the connection network structure of participants. Among these advantages, those that come from having contacts who are more or less connected to each other have received perhaps the most attention. Therefore, one of the advantages of structural embeddedness is the information advantages of sparse social networks in publishing industrial cluster. Structural embeddedness determines the range of resources

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an organization can obtain, while relational embeddedness determines the realization of this potential. In fact, relational embeddedness indicates share of trust and information stemming from inter-organizational relations in publishing industrial cluster. In other words, the quality of social relations will affect the accessible resources and the extent to which they will be obtained.

5 Mechanism of Social Relation Network Influencing on Publishing Industrial Cluster Social embeddedness can affect the operation and institutional framework of publishing industry clusters in three ways [7], This is what we can learn from the existing literature (Nahapiet & Ghoshal, 1998). The first way: through specific and interrelated historical, social and cultural factors in local areas with which publishing industrial cluster is embedded, Due to local endowment, there are significantly different development processes. This includes local religious and/or cultural resources that influence dominant values and support relationships within and between businesses. The second way: build a bridge for trust, social reputation and mutually beneficial relations between enterprises through social interaction and production relations, so as to reduce transaction costs. Being socially embedded within local relation networks provides a basis for accepting market-related information, and generates common language facilitating both social and production relations within national digital publishing base. So the regulatory mechanism for inter-firm relations in NDPBs emerges from common code and common language of inter-firms within relational networks. Punishments enforce the limits of socially accepted commercial behavior Within and between enterprises. The ultimate sanction might imply a exclusion from social network in publishing industrial cluster. Many firms in clusters are reluctant of loss of reputation. A highly valued reputation is built on honesty and familiness in business transactions over an extended period of time. If the social and commercial exit costs caused by breach of commitment are high enough, the reputation effect may contribute to the cooperation between enterprises. The third way is through social environment which influences, and is itself influenced by, digital technical and publishing technological innovation. From the perspective of cluster, digital publishing technology is endogenous, or directly related to the local social network structure where the technology is located. This has two important implications. First, clusters of small-middle sized digital publishing firms depend on integration of tacit knowledge involving with technology, skills, products and processes that is specific to social network and accumulates over a long period. Second, digital publishing technology is usually type of incremental innovation which builds upon interactions between customers and producers. This interactive technical cooperation needs to be based on the recognized code of conduct, information channels and mutual trust in publishing industrial clusters. Acknowledgment. This research is supported by BIGC Key Teaching Reform Project—“Based on mobile cloud platform, Study on promoting innovation of case-based teaching” item (NO. 22150118002/001), and BIGC Key Research Project—“Based on dual-circulation development pattern, Study on promoting new dynamic of publishing industry” item.

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References 1. Etzkowitz, H., Chunyan, Z.: The Triple Helix: University–Industry–Government Innovation and Entrepreneurship. Routledge Press, London (2017) 2. Porter, M.: National Competitive Advantage. Huaxia Press, Beijing (2000) 3. Shuaishuai, L., Suyang, H., Tiyan, S.: How can a firm innovate when embeddedin a cluster?— Evidence from the automobile industrial cluster in China. Sustainability 11, 1–17 (2019) 4. de Jacobs, M.: Clusters, industrial policy and firm strategy: a menu approach. Technol. Anal. Strateg. Manage. 8(4), 425–437 (1996) 5. Granovetter, M.S.: Economic action and social structure: the problem of embeddedness. Am. J. Sociol. 91, 481–510 (2015) 6. Granovetter, M.S.: Problems of explanation in economic sociology. In: Nohria, N., Eccles, R.G. (eds.) Network and Organizations: Structure, Form and Action, pp. 25–26. Harvard Business School Press, Boston (1992) 7. Nahapiet, J., Ghoshal, S.: Social capital, intellectual capital, and the organizational advantage. Acad. Manag. Rev. 23(2), 242–266 (1998)

City Brain: A New Model of Urban Governance Wei Liu1 , Yiduo Mei2(B) , Yazhong Ma2 , Weiling Wang3 , Fangda Hu4 , and Dapeng Xu2 1 School of Economics and Management, Beijing Jiaotong University, Beijing, China

[email protected]

2 Zhongguancun Smart City Co. Ltd, Beijing, China

{meiyd,mayz}@zhongguancun.com.cn

3 China Electronic Information Industry Development Research Institute, Beijing, China 4 School of Electronic Information Engineering, Beijing Jiaotong University, Beijing, China

[email protected]

Abstract. With China’s economic development from high growth to high-quality development, urbanization from 1.0 to 2.0, urban development from incremental construction to stock quality improvement and incremental structural adjustment, the focus of urban governance has also shifted from economic development to urban modernization. The modernization of urban governance is an important aspect of the country’s governance system and capabilities. Under the background of accelerating urbanization process and the continuous emergence of urban diseases, the topic of how to promote the modernization of urban governance has attracted wide attention. Based on this, this paper from the perspective of urban governance modernization, combined with the advantages of city brain in urban governance, explore the difficulties and pain points in urban governance, and further analyze how from urban governance concept, multi-city governance, and urban governance digitalization to improve the level of urban governance,drive the digital, intelligent, and modern development of urban governance. Keywords: Modernization of urban governance · Haidian city brain · Urban governance community

1 Introduction Since the reform and opening up, China’s urbanization rate has increased from 17.9% in 1978 to 60.6% in 2019, and the urbanization construction has moved from stage 1.0 to stage 2.0. The focus of urban development has changed from accelerating urban construction to focusing on refined urban governance. With the continuous acceleration of my country’s urbanization process, urban governance issues have become increasingly complex and diverse. As an important part of the modernization of China’s governance system and governance capabilities, the level and quality of urban governance is reflected in all aspects of food, clothing, housing, transportation, education and employment, medical care and elderly care, culture and sports, living environment, social order and so on [1]. President Xi Jinping pointed out at the celebration meeting of the 40th anniversary of the establishment of Shenzhen Special Economic Zone that it is necessary to © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, pp. 107–115, 2022. https://doi.org/10.1007/978-981-16-8660-3_12

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innovate ideas to promote the modernization of the urban governance system and governance capabilities, accelerate the modernization of the urban governance system and governance capabilities, and strive to create a new governance that conforms to the characteristics and laws of super large cities. In today’s digital era, it is urgent to promote the modernization of urban governance based on the objective laws of urban development and the actual needs of the people, focusing on multi-party cooperation, scientific and technological empowerment and digital guarantee, and constantly improve the scientific, refined, intelligent and collaborative level of urban governance. The research on urban governance in our country started relatively late, beginning in the late 1990s. Urban governance emphasizes the game and cooperation between the government and the civil society, the public sector and the private sector under the common interests. It is the cooperation of the government, enterprises and social civil volunteer groups in urban public affairs, mainly focusing on urban public administration and public services. Zhou Chengjun mentioned in his article “Market, Government and Modern Urban Governance in Urban Management: A Review of Experience and Theoretical Reflection” that modern urban governance refers to the process of urban government and civil society jointly making decisions in the modern development and management. In recent years, with the continuous development of the Internet and big data technology, some new urban governance models are also emerging, for example, Xiongan New Area proposed to build a digital twin city, Hangzhou [2] and Haidian District and other places proposed to build an city brain [3], and Huawei proposed to build a whole-scene smart city [4], Guangzhou actively participate in the construction of “Guangzhou Smart Management” platform. Wang Jian (2020) [5] believes that the city brain is the urban digital infrastructure in the future era of data resources. The use of computing power and data resources to optimize and efficiently use the allocation of urban natural resources and public resources is a new way for the sustainable development of cities in the future. Based on this, this paper from the perspective of urban governance modernization, combined with the advantages of city brain in urban governance, explore the difficult pain points in urban governance, and further analyze how from urban governance concept, multiple urban governance, digital city brain to improve the level of urban governance, drive the digital, intelligent development of urban governance, modernization.

2 The City Brain Helping the Digital Development of Urban Governance As a new type of infrastructure for urban construction and development, a new platform for digital governance, and a new carrier for government decision-making [6], the city brain connects the data resources scattered in various units of the city to form urban big data, thereby helping the digital, intelligent, and modern development of urban governance.

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2.1 The Construction Process and Operation Framework of the City Brain in Haidian District First, confirm that you have the correct template for your paper size. This template has been tailored for output on the A4 paper size. If you are using US letter-sized paper, please close this file and download the Microsoft Word, Letter file. In 2018, Haidian District began to layout the Haidian city brain construction, marking the official construction of “Haidian city brain” has entered the fast lane. The district government, together with domestic enterprises represented by Zhongguancun Smart City Co.Ltd., will jointly build top-level design, integrate the business systems of various departments, open up data barriers, and develop and build new infrastructure of “city brain” and various application scenarios. In the construction process, the “fourwheel drive” mechanism was created, that is, the government, research institutes, construction and operation platform companies and industrial alliances are jointly built, with the government-led, diversified participation, joint construction and sharing as the mechanism guarantee. Haidian city brain takes information flow as the main line, and makes comprehensive use of new generation information technologies such as artificial intelligence, big data and blockchain, to realize the process reengineering, model innovation and efficiency improvement of urban construction, operation, management and service. It is a new infrastructure that supports and leads the sustainable development of the city. In terms of top-level design, Haidian District has studied and designed a new and landing planning outline, and created a “1 + 1 + 2 + N”, namely a perception network, an intelligent cloud platform, two centers (big data center, AI computing center) and N innovative application scenarios. Among them, the “one perception network” is supported by more than 14,500 in network cameras and more than 10,000 sensors; “Time One Map” brings together 249 thematic map data in the region, Including basic geography, administrative divisions, 2–3 D maps, about 170,000 buildings, And urban parts data composed of 127 layers and about 1.3 million data elements; “Two centers” mainly include big data centers and AI computing centers, big data center gathers government data, Internet of Things data, Internet data, and social resources data, Has now been connected to Haidian District; The AI Computing Center is provided with technical support by the head technology enterprises in the whole region, Intelligent analysis and processing of various data, and provide intelligent analysis services and identification results. Different from other city brain, Haidian District city brain with the help of Zhongguancun Smart City Co.Ltd. Set up AI computing center, Baidu, Cambrian, Bit Continent, 4Paradigm and dozens of AI algorithms and AI chip enterprise technology convergence, for the first time to realize the domestic AI chip and algorithm adaptation, fully realized the chip layer to algorithm layer domestic independent controllable, and Nvidia, AMD and other international enterprises formed technology monopoly group to the standard. 2.2 The Role of City Brain in Haidian District The construction and use of the city brain has changed the urban governance mode of Haidian District, changed from passive governance to active governance, and promoted

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the overall wisdom of urban operation, evaluation and development. At present, Haidian District city brain has built more than 50 innovative application scenarios and more than 40 information system access data operation. It continues to promote scene innovation in five areas: public safety, urban management, urban management, urban transportation, ecological environmental protection and intelligent energy, and helps Haidian District realize the intelligent upgrading of urban management. In terms of public safety, through intelligent access control, fire detection, intelligent elevator and other technologies, a new community intelligent management mode with controllable entry and exit of people and vehicles, visible housing living conditions, fire safety risks can be prevented, and convenient public services can be enjoyed. In terms of urban management, taking the comprehensive management of muck trucks as an example, Haidian District Government has integrated the site information, satellite map spot, surrounding video, consumption location and other monitoring data with the government data of traffic, environmental protection, urban management and other departments, and built a car of information. Make full use of the geographical positioning and AI recognition ability of “city brain” to realize the accurate identification and efficient treatment of muck vehicle source control, vehicle track research, illegal characteristics, law enforcement evidence collection and automatic processing, and provide scientific and technological support for the non-site law enforcement of traffic and urban management. Data show that the accuracy of illegal characteristics identification reached more than 99.7%; the accuracy of trajectory prediction and analysis of muck car exceeded 60%; the violation rate decreased from 85% to 10%, comprehensively improving the management capacity of urban muck car. In terms of urban traffic, Haidian Smart Traffic System can grasp the traffic situation in real time, accurately perceive all kinds of traffic events, and command and control the traffic operation state. Collect information on more than 300 parking lots to improve the utilization rate of parking lots; capture traffic violations and background intelligent analysis, with non-site law enforcement reaches 86%. In terms of epidemic prevention and control, with the help of the city brain, it has built an epidemic prevention and control system, including the information management system for epidemic prevention and control personnel, epidemic big data analysis system, epidemic prevention and early warning system, and community prevention and control early warning system. The system can dynamically monitor population distribution and changes, track and analyze whether confirmed and suspected patients have had close contact, and timely and accurately detect important epidemics. AI rapid temperature detection system, using face recognition and thermal imaging technology, can detect contactless, imperceptible and efficiently detect mobile temperature, give warning to abnormal people in crowded areas such as railway stations. With the help of AI call platform, telephone research, telephone notification and resident epidemic prevention guidance, and cover 617 communities (villages) online during the epidemic. “City Brain” in the prevention and control of the epidemic in Haidian and even Beijing provides stable support for the timely grasp of the epidemic and the government to make scientific control decisions. In terms of ecological and environmental protection, “smart site”, “black smoke site”, “black smoke car capture”, “online monitoring of catering industry lampblack”,

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“garbage classification” and other scenes have been built. In view of the construction problems of the construction site, the management personnel can accurately check the real-time situation of all construction sites in Haidian District through the intelligent supervision platform, and comprehensively monitor and manage the operation status of the site construction personnel, machinery and transportation vehicles. Air monitoring micro-stations share data with 72 municipal monitoring base stations to realize real-time monitoring and real-time early warning of air quality, and quickly trace back to pollution incidents.

3 The Difficulties and Pain Points of Urban Governance 3.1 Misconceptions in the Urban Governance Concept The concept of urban governance is the soul of urban development, which determines the direction and mode of urban governance. Some cities have conceptual deviations when carrying out urban governance activities, which make the effect of urban governance contrary to the better vision of the people. Under the guidance of the concept of development for a long time, the excessive pursuit of economic growth has ignored the social and overall development of the city, resulting in the emergence of various urban diseases such as urban traffic congestion and environmental pollution. For a long time, cities in China have achieved rapid growth in economic aspects and the urbanization process is accelerating. However, due to the guidance of the single economic concept on development, cities only pay attention to economic growth and ignore the protection and inheritance of their own urban characteristics. The phenomenon of “A thousand cities are all the same” is becoming more and more present [7]. 3.2 Urban Governance Methods Lag Behind the Development Demand Urban governance work covers all aspects of society, and various means need to be comprehensively used comprehensively to solve urban transportation, ecological environment, urban management, public safety, energy shortage and other aspects. Urban governance methods is an important guarantee for the effect of urban governance. At present, in the process of urban governance, Chinese cities are still facing prominent problems between the mismatch of urban governance means and the needs of urban development [8]. The backward governance means restrict the scientific, intelligent and modern development of the city. First, urban governance still relies on the same, copying and other unsustainable governance means. Due to the differences in ecological environment, historical and cultural, and industrial layout, the urban style, development direction and means of governance must be both common and personalized aspects. It is inevitable and impossible to realize the modernization of urban governance only by relying on pasting, copying and copying. Only by taking measures according to urban conditions and local conditions, organically combining commonness and personality, and taking a new way suitable for the characteristics and laws of urban governance can we truly realize the modernization of urban governance. Second, the renewal and optimization of urban governance means lags behind the needs of rapid urban development.

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The continuous development of Internet technology in promoting the development of urban construction also produced a large number of high-frequency multi-dimensional unstructured large data, massive growth of multi-dimensional unstructured data from all walks of life, with data dispersion, formats, disorderly characteristics, the traditional human tactics and other urban governance is difficult to meet the development of digital economy, put forward the update and higher requirements. 3.3 Group Governance Wisdom Is Difficult to Play Effectively At present, most of the urban governance work in all regions shows the government setting the stage alone and performing alone, and social forces are not fully played. First, local governments are accustomed to being in an absolute dominant position and dealing with all urban governance business. The public and social forces are in a weak position, and their ability and subjective initiative to participate in urban governance are relatively low. In the environment of “strong government and weak society”, urban governance relies mostly on the administrative orders of the government. On the one hand, it causes the redundancy and low management efficiency of government departments. On the other hand, it is difficult to play the wisdom of mass governance, and the effect of urban governance cannot be effectively guaranteed. Second, in the process of urban participation, the lack of effective social participation mechanism guarantee, and social participation in governance is a mere formality. The participation of social forces in urban governance is an important force guarantee for the benign development of urban areas, and it is difficult to achieve the expected effect only by the urban governance of the government. When cities carry out urban governance, due to the lack of benign and effective group governance participation mechanism, the willingness and scope of social participation are still relatively small, and they are mostly passive participation in form. In general, the public in the process of urban governance is still in the stage of symbolic participation. Third, the phenomenon of “Kowloon water control and independent governance” among government departments is prominent, affecting the effect of urban governance. The vertical management mode of China’s administrative management has long been long-term top-bottom and respective management, various government departments are mostly in the state of block division, lack of effective coordination and communication, and lack of integration in urban governance. In some urban governance work, there are phenomena of overlapping responsibilities and buck-passing, the efficiency of urban governance work is low, and it is difficult to achieve the optimal allocation of various resources.

4 The Way to Improve the Level of Urban Governance 4.1 Update and Optimize the Objectives and Concepts of Urban Governance At present, China’s economic development from high growth stage into high quality development, urbanization development has entered the middle and late stage of urban development from incremental construction to stock quality improvement and incremental structural adjustment, the focus of urban governance from “focus on economic

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development and urban construction” to “focus on public demand and social equity”. Under the new situation of urban development, in the face of the new situation and new background of urban governance, the government should change the concept of urban governance, optimize the urban governance objectives, and strengthen the fine urban management. First, to establish a systematic governance thinking, comprehensive treatment. Based on the urban development stage and the actual situation, respect the objective law of urban development, change the governance concept of blindly pursuing economic growth, set up the concept of urban governance by city policy and system governance, coordinate the resources system governance problems, promote the adjustment and optimization of urban structure, and realize the modernization of urban governance. Second, we will uphold the concept of people-centered development. Adhere to the important concept of “people ‘s city people build, people’s city for the people”, always focus on the people’s real needs and vital interests of urban governance activities, improve the level of urban management and urban quality, strive to achieve urban development for the people, let the people live more convenient, more comfortable and better in the city. Third, we will implement the new concept of innovative development. We will unswervingly deepen reform and innovation in the whole process and links of urban governance, implement the concept of innovative development in the whole process of urban governance, promote innovation in urban governance methods [9], and promote the modernization of urban governance system and capacity. 4.2 Building a Multi-dimensional Collaborative Urban Governance Community As a systematic social project, urban governance is related to all walks of life in the city and the vital interests of the broad masses. Urban governance is not a one-man drama of the government. It should not only participate by the government, but give full play to the strength of the government, society, market and the public, from the “elite game” of a few social elite participation to the open work of the public, to promote the socialization and coordination of urban governance [10]. First, we need to transform the functions of the government. Diversified governance is not a government withdrawal, nor a “small government and a weak government”, but a common governance model of “a small government, a strong government and a big society”. The government should change its thinking, from an all-around government to a limited government, from control to service, provide guidance services, coordinated services and consulting services to all subjects, and integrate management into services. Second, we will build social governance platforms such as the city brain to stimulate the vitality of mass governance. With the help of city brain, the Internet and big data technologies, a grid management service platform has been built, take the grid leader as the leadership, adhere to the guidance of the Party, and pay attention to full-time grid members, part-time grid members and grass-roots people, so as to form joint work efforts and give play to the maximum efficiency of social governance. At the same time, establish and improve the assessment and evaluation system of the grid management platform to promote the virtuous cycle of urban governance and play a practical role. Third, we will build a diversified linkage governance mechanism and participation mechanism to ensure the smooth channels for multiple subjects to participate in urban governance. We will formulate and improve the communication and consultation mechanism among multiple

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entities, advocate institutional communication and consultation among communities, design reasonable communication and consultation processes, clearly define the scope of communication and consultation, and facilitate the communication and transparent consultation among communities. 4.3 Digital Empowerment to Achieve Refined Urban Governance City brain provides new methods and tools for urban governance. In the digital era of the rapid development of city brain, the Internet and big data technology, the improvement of urban digital governance capacity is the key aspect of the modernization of urban governance [11]. The rapid development of city brain technology provides new means and methods for urban governance, greatly improves the efficiency of urban operation, and makes the city enter the fast lane of refinement, scientific and intelligent governance. First, we will build a digital urban management platform for city brain category and accelerate the digital transformation of urban governance. We will focus on the current situation and resource foundation of urban governance, accelerate the construction and transformation of new digital and intelligent infrastructure, improve urban capacity for digital governance, innovate and solve difficulties and pain points in the process of urban governance, and comprehensively improve the level of urban construction. In view of the problem of data sharing and interconnection in urban digital transformation, information technology is used to optimize the allocation of government functions to promote data resources sharing and provide decision support for the government. Second, the urban digital management platform relying on the city brain to build a clear responsibility and people-oriented urban fine management system. The digital management platform is closely combined with the urban fine management, use the digital platform and other new urban management means and modes to realize the urban grid management, implement the refined and institutionalized governance standards, consolidate the responsibility of urban fine management, and ensure that the digital governance of the city covers every corner. Third, we will build a modern urban physical signs evaluation index system according to urban conditions, and lead the modern development of urban governance. With the technical support of respecting the objective law of urban development and big data and other information means, with the help of urban physical signs platform to carry out physical signs monitoring and evaluation of modern cities [12], supervise the effectiveness and operation of urban governance, strengthen urban digital governance, and drive the scientific, coordinated and intelligent development of the city.

5 Conclusions The city brain provides new methods and tools for urban governance, and plays a role of “accelerator” in promoting the modernization and development of urban governance. As an important part of the modernization of China‘s governance system and governance capabilities, the improvement of the level of urban governance is of great significance for the adjustment and optimization of the urban structure, improving the quality of urban development, and then realizing the people’s growing needs for a better life. For this reason, based on the perspective of urban governance modernization, taking

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the city brain of haidian district as an example, we will deeply analyze the difficulties and pain points that still exist in the current urban governance process, and explore the three dimensions of urban governance goals, multi-city governance, and digital city governance. The brain promotes the modernization of urban governance and enhances the level of modernization and intelligence of the city.

References 1. Yuan, F.: We Will Improve Intelligent Social Governance. People’s Daily, 2018-06-20(07) 2. Zhang, W., Jin, H., Leng, J.: How does the construction of smart cities contribute to the modernization of social governance-Hangzhou “urban brain” under the test of the new crown epidemic. J. Zhejiang Univ. (Humanit. Soc. Sci. Edition) 50(4), 117–129 (2020) 3. Li, W.: Principles of digital transformation of megacity governance from the perspective of digital interface-taking the urban brain as an example. E-government 219(3), 2–16 (2021) 4. Jiao, Y., Chen, S.: From digital city management to smart city governance: a study on the Chinese path of urban governance paradigm transformation. Fujian Forum (Humanities and Social Sciences Edition) 342(11), 37–48 (2020) 5. Wang, J.: City Brain”: Big Data Makes Cities Smarter. Polit. Work J. 470(1), 82–83 (2020) 6. Shan, Y., Ruan, Z.: Social governance map of the comprehensive governance system—take the urban brain, for example. Stud. Socialism Chin. Characteristics 157(1), 65–70 (2021) 7. Liao, J.: Research on the innovation of Chinese urban governance model under the background of rapid urbanization. Wuhan University (2014) 8. Ke, Y.: Study on Community Conflict and Governance in Megacities in China. Nankai University (2016) 9. Li, C., Liu, S.: Smart city: the new trend of urban governance in China. E-government 06, 13–18 (2011) 10. Wang, H.: The Study of the Urban Governance in Contemporary China. Jilin University (2019) 11. Zhang, M.: From technical rationality to value rationality: the challenge and response to the modernization of urban governance empowered by big data. Urban Dev. Res. 27(02), 97–102 (2020) 12. Zhang, X., Jia, H., Zhang, Z.: Research on the innovative development model of urban governance under the background of smart city. China Sci. Technol. Forum 2017(10), 105–111.12 (2017)

Analysis on the Development Path of Enterprise Transformation and Upgrading—Based on the Strategic Niche Theory Yue Zhang and Jiayuan Wang(B) School of Economics and Management (of Beijing, Jiaotong University), Beijing, China [email protected]

Abstract. In the network era, the rapid development of information technology has caused a significant impact on traditional Chinese enterprises, causing them to fall into a development bottleneck. Transformation and upgrading have become effective ways for existing enterprises to save themselves and breakthrough themselves. However, there is still a “black box” in enterprise transformation and upgrading in the present research. As a result, it isn’t easy to provide correct and practical guidance for enterprise practice. Therefore, based on the value chain theory research and the strategic niche theory, this paper attempts to deeply analyze the mechanism of Chinese enterprises’ transformation and upgrading and then propose three development paths: the development path of technicalization, marketization, and collaboratization, to provide practical and theoretical guidance for enterprises’ transformation and upgrading. Keywords: Strategic niche management · Transformation and upgrading · Development paths

1 Introduction In the network era, the rapid development of information technology has caused a significant impact on traditional Chinese enterprises. For example, the market competition environment becomes more complex, and the consumer demand becomes more diversified in the meantime. The rapid development of information technology has promoted productivity growth, industrial transformation, and consumption progress. It also brought new opportunities for the transformation and upgrading of enterprises. The success of an enterprise depends on whether it is in an industry with its profitability (Porter 1991), and transformation and upgrading is an essential ability for an enterprise to develop itself in the industry. In the late 1990s, Gereffi (1999) first clearly proposed enterprise upgrades and introduced them into the GVC analysis model. He pointed out that the transformation and upgrading enables an enterprise to move toward a more profitable capital transfer capability and a technology-intensive economic field at high speed. Kaplinsky Supported by key project of Beijing Social Science Foundation (No. 18GLA008): Study on the path and Strategy of Beijing-Tianjing-Hebei Innovation-Driven Development. © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, pp. 116–123, 2022. https://doi.org/10.1007/978-981-16-8660-3_13

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(2001) regards transformation and upgrading as an act. This act enables companies to manufacture higher-end products, more efficiently manufacture products, or have more manufacturing skills. Blumenthal believes that enterprise transformation is a brand-new change in cognition, an organization’s behavior (Humphrey and Schmitz 2002). And the transformation is also a new business model created by an enterprise to adapt to the future (Bazan 2000). Existing studies show that most Chinese companies are included in the governance of a semi-tiered value chain. Leading companies will hinder the upgrading of corporate functions and chains (Humphrey and Schmitz 2002). Companies relying too much on low-cost advantages will also delay Chinese corporate transformation and upgrade (Mueller 2006). Although words such as enterprise transformation and upgrading are critical issues that the academic community is concerned about, there still lacks some research on the path of enterprise transformation and upgrading. The present study has not deeply analyzed the specific direction of transformation and upgrading Chinese enterprises under the global value chain governance (GVC). Moreover, the existing research cannot explain the logic and law of the transformation and upgrading of enterprises. Therefore, the research of enterprises’ transformation and upgrading path under the network era still exists a “black box.” Rip emphasized that enterprises’ transformation and upgrading must realize the allocation and integration of innovative resources through ecological niche management (Schot and Geels 2008)). They need to overcome the “system bottlenecks” and “interface fragmentation” and open up the “technology-market-industry” channel and “basic research-application research-production and operation in the promotion stageProduction and operation in the popularization stage” complete channel. Based on the above, this paper made an in-depth analysis of the path of Chinese enterprises’ transformation and upgrading in the network era through strategic niche management theory (SNM) and put forward the development path of technicalization, marketization, and collaboratization of enterprise transformation and upgrading, to provide such guidance for the development of the existing enterprises’ transformation and upgrading and we hope on the road of industrial transformation and upgrading, we can see traces of Chinese enterprises’ struggle.

2 Literature Review Strategic niche management theory (SNM) is a theoretical system that focuses on selecting new technologies and then building a stable technology by cultivating and incubating the latest techniques, finally improving the success rate of new technologies. Various methods of transformation technology and management should be introduced and applied to the SNM theory (Kemp et al 1998). Kemp, Schot, and Hoogma argued that, logically speaking, SNM is an endogenous process, including the consistency of expectations, network construction, and learning process (Canieels 2008). Applying the theory of SNM refers to the process of explicitly researching and managing the formation of niches through transformation management experiments in real social life (Hoogma 2002). Its core idea is to promote and stimulate the coordinated development between new technologies and the social environment through transformation management experiments

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(Hoogma 2002). The central focus of SNM theory is about presupposing and authorizing to innovate in a protected space, and in this process, the ecological niche of innovation technology is dynamically adjusted. “Technology Niche” was initially used by Van de Belt & Rip in his 1987 scientific work. By continuing scientific technology learning and experimental improvement, the development path of innovative technology is constantly optimized, and the innovation network is adjusted. Schot and Geels (2008) defined a specialized niche as a related technological innovation that affects technological evolution and technological change. The SNM approach suggests that creating technological niches can facilitate sustainable innovation journeys, such as protected spaces that allow experimentation with the co-evolution of technology and user practices and regulatory structures (Johan 2008). Technology formed in a protected space, and in this space, all the technological inventions in the technology niche can boldly try and develop without entering the mainstream market. Paolo Agnolucci and William Mcdowall compared the technology niche to an “incubator” for new technologies, in particular, the emergence of “incubators” are not for a single technological improvement, but for the emergence of a technology system, which may even lead to social, technological innovation and change (Poon TSC 2004). Each link in GVC corresponds to a different technology level, and one of the critical points of value chain improvement is the transition of enterprise technology capabilities (Humphrey 2002). In other words, a technology niche usually refers to a collection of the whole process of technology research, development, breakthrough, and transformation in a protected space. Specifically, it mainly includes technological niche and market niche for the strategic niche management theory. In incubating technologies, the market niche refers to make innovative applications through a large number of extensive experiments and then win over the supporters of creative resources and new technologies—for example, funds, knowledge, technology, and personnel. In the market niche stage, even there is competition between the latest technology and the mainstream technology, there still have many users who can easily find and identify the product or the related technology image through the diffusion of the market niche. And this phase is mainly around the users’ functional requirements. Therefore, the SNM theory advocates that, compared with the mainstream products, the enterprises can enhance the competitiveness of the new creation by establishing a market niche. With establishing a market niche, the enterprise gradually occupied the mainstream market and formed a new technical system. Generally speaking, the analysis based on a market niche can objectively reflect the current resource supply and allocation of enterprises in transformation and upgrading and the degree of communication between enterprises and the surrounding environment (Schmitz 2004). On the one hand, the market niche analysis can serve as the core reference for the direction and path of enterprises’ transformation and upgrading to a certain extent. On the other hand, the specialized niche reflects the technological resources companies can use in their technical research and development process. It also reflects the technological innovation advantages and development space of enterprises in a particular period. Overall, strategic niche focuses on the study of the mutual relationship and interaction of resource space enterprises. In the process of enterprise transformation and

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upgrading, the significance of strategic niche is that it can realize enterprise transmission and upgrading through the construction and optimization of protection space. And by strategic niche, we can strengthen, weaken, or withdraw protection measures to promote the continuous transition of ecological niche. However, in the current research, enterprise transformation and upgrading based on strategic niche theory are rarely involved. Therefore, this paper attempts to design feasible paths according to the strategic niche management theory.

3 Enterprise Transformation and Upgrading Path Design Based on SNM According to SNM theory, the technological niche is closely related to the market niche in the evolution process of emerging industries. By acquiring technical and market capabilities, enterprises can improve their competitiveness and engage in high-value-added activities. Firstly, the transformation of the technology niche can be compared to an incubator of new technology in the future. Technological innovation is the source of a company’s eternal vitality. With new technologies, industrialization, innovation, the emergence of new industries, and even upgrading, the value chain will have a source (Humphrey 2002). The existence of this incubator is not for a single technological improvement but for the emergence of a technical system, which may even trigger social, technological innovation, and change. Based on the specialized niche, enterprises cultivate diversified emerging technologies or improve and combine the existing technologies to acquire independent intellectual property rights. Then enterprises will promote the new technology to a mature and stable status until forming the dominant design. Finally, upgrade technological innovation capabilities through the specialized niche and rely on independent intellectual property rights to industrialize technology. In addition, the market niche should be used to create demand space for new technologies so that consumers can recognize and accept new products. Then, the products’ social network effect will be expanded. Upgrading the market capacity through the market niche can promote a high-end-oriented market. The technical niche and market niche synergize to form a new industry. After adapting to the market environment, the latest industry occupies the market space and presents rapid development. It is worth noting that the technology niche and the market niche are not mutually exclusive relationships, nor must the technology niche develop. However, the two can create together to promote the transformation and upgrading of enterprises. 3.1 Paths Design Foreign scholars have clarified the type of enterprise upgrading from a micro perspective (Humphrey and Schmitz 2002): One is process upgrading, the second is product upgrades, and the third is function upgrade. Then we attempted to develop the path which can realize three types. First, the combination of the internal and external environment of the industrial niche promotes the formation and the operation of new industries and product development mechanism (Jiang and Liu 2015). It also supplies new initiatives, making the new industries emerge in the market compared to the traditional sector. And

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then, the latest industry gradually grows into a leading sector by using the niche strategy. Here, the ecology protection will gradually withdraw. As a result, the emerging sector will develop in market competition, and industrial transformation and upgrading will be promoted. Then with the power of industrial upgrading, the emerging enterprise in new industries would further transform and upgrade. Accordingly, this paper puts forward the following three ways of enterprise transformation and upgrading ((Fig. 1).

Strong

IV

III

3 Technology and market synergy path

Market capability

1

Technology Niche Path

I Weak

2 Market niche path

II Technology capability

Strong

Fig. 1. Transformation and upgrading path design

According to SNM theory, enterprise transformation and upgrading can be divided into three stages. Each stage corresponds to one transformation path. First of all, the technological niche path focuses on building the technical ecology by enhancing their technological innovation ability and embedding the incubation process of enterprise transformation and upgrading. Secondly, based on technology cultivation, the market niche path strives to enhance market expansion capabilities through self-owned brand building, etc., to form the market niche, and finally transit to the industrial niche, which embeds the process of enterprise transformation and upgrading. Eventually, technology and the market develop in a coordinated way. In this stage, the enterprise makes efforts in both technological innovation and market expansion. To emphasize, the function of technological innovation on the industrial structure is mainly reflected in two aspects: the first one is the elements of productive forces, and the other one is the constraints of industrial design. And the function of market capability is reflected in this aspect: the emerging technology industries gain consumer awareness in the market and gradually growing into the leading sectors. Path I and path II are not mutually exclusive. In the different stages, enterprises may have other priorities and choose different ways. For example, in the technology niche stage, it should rely on the judgment of the technology. If the technology is judged to be "promising," relevant brand building can be carried out earlier, but the focus is still researching and developing new technology. Similarly, other potential new technologies can also be cultivated in the market niche stage, but the principle still should be on the market integration and promotion of dominant technologies.

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3.2 Niche Evolution Path Analysis

Flawed technology

E

D

C Returns to the Technological niche

F Returns to the Market niche

F A External environment

Technology incubation stage

A

A

External environment

External environment

Market development stage

Industry maturity stage

Technological niche

Market niche

Fig. 2. The niche evolution path of the enterprise at different stages

Based on the above paths, this paper completes the niche evolution path map of the enterprise at different stages, as shown in Fig. 2. The specific analysis is as follows: The path I is the technology formation stage, also the incubation phase of transformation and upgrading of the enterprise. Geels (2002) researched that new technologies are in a fully protected macroeconomic space. All technological innovations and inventions can be boldly tried and thrived, as long as they have not entered the mainstream market macroeconomy. Paolo Agnolucci (2007) researched that the technology niche is an "incubator" for cultivating future new technologies that may trigger macroeconomic, social, technological, and social changes. Weber and Hoogma (1999) researched that the technology niche provides a protected area for new technologies free from the market or other pressures. It can allow multiple parties to participate in the process of protecting new technologies and promoting their maturity. Hoogma defined the technology niche as a completely protected area within the existing macroeconomic policy framework, in which new technologies can be successfully tested and guided into the market. Technology R&D input is often in the main technical direction. The enterprise technology niche will be multiple or overlap, so there may occur the same technical invention patent. Technical standardization (Kumar 2009), the external environment of technological innovation explained the technology The influence of oneself and the environment on the transformation and upgrading of the enterprise. Then some of the same invention patents begin to merge, and the others continue to develop until the technical performance is stable. Here, the enterprise needs to pay attention to technology innovation, invest heavily in developing new products, and then obtain relevant policy support. When a technology niche turns to a market niche, there exists an imperfect technology niche. For example, if C in cannot enter the next stage, it can only retreat to the laboratory of new technology incubation or even directly withdraw from the experimental plan, such as D and E. In terms of Path II, the market cultivation and enterprise upgrading stage, in this stage, a mature technology can develop itself without protection in the status of isolation

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from the mainstream market. And it could create a new technology such as F. The original technology niche with stable technical performances can develop and grow under the circumstance below: the enterprise can meet the links of technology and demand, consumer acceptance can be enhanced, etc. And eventually, it crosses the market niche to the industrial ecological niche and grows into a mainstream industry. That means the enterprise enters the mature stage. However, a newly hatched technology niche F cannot develop into a leading sector and return to the market niche, or even return to the technology niche until it exits the experiment. Therefore, in general, path I and path II are practicable. In path III, it requires the enterprise to have strong technical innovation ability objectively and market expansion ability initially, And it isn’t easy to achieve the high-end leapfrogging. Thus, its experience is challenging to promote to the universal enterprise.

4 Conclusion 4.1 Theoretical and Practical Contributions This study takes Chinese existing enterprises as the research object based on the global value chain theory and strategic niche theory in the present study. And then, the research put forward three paths to provide relevant guidance and reference for the existing enterprises’ transformation and upgrading practice. Specifically, in this paper, the research conclusion is as follows: First of all, based on the strategic niche management theory, from the perspective of technology niche and market niche, this paper designed three paths, including the path of technicalization, marketization, and collaboratization. The article also completed the path model and analyzed the enterprise ecological evolution at different stages. a) In addition, the article applied the strategic niche theory to enterprise transformation and upgrading. Few existing types of research have been involved, further explaining and extending the application of this theory. At the same time, this paper puts forward three practical ways to guide enterprises’ transformation and upgrading. 4.2 Limitations Although the article puts forward some practical methods, the research still has certain limitations. Because this paper focuses on the research at the theoretical level and without a large amount of data support. Nevertheless, researchers can do further empirical or case studies to demonstrate this design path in future studies further.

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Author Index

F Fu, Linlin, 8 G Gu, Xinyi, 101 H He, Chaojie, 67 Hu, Fangda, 107 L Li, Jingcheng, 79 Li, Menggang, 79 Li, Zhen, 24 Liu, Jiajia, 45 Liu, Shouxian, 101 Liu, Wei, 107 M Ma, Yazhong, 107 Ma, Zhong, 37 Mao, Qianyu, 24 Mei, Yiduo, 107 R Rui, Guangwei, 79

T Tian, Jun, 8 Tong, Dong, 1 W Wan, Keyong, 67 Wang, Jiayuan, 116 Wang, Qi, 37 Wang, Ruiyang, 24 Wang, Weiling, 107 Wei, Jun, 16 Wu, Xiaqin, 54 X Xu, Dapeng, 107 Y Yu, Lu, 92 Z Zhang, Qiangjing, 8 Zhang, Yue, 116 Zhao, Shanhua, 54

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 M. Li et al. (Eds.): IEIS 2021, LNOR, p. 125, 2022. https://doi.org/10.1007/978-981-16-8660-3