Value Co-creation through IoT: An Investigation of the Synergies between Market and Government Policies in the Equipment Manufacturing Industry of Shandong

Shandong University of Finance and Economics, Jinan City, Shandong Province, China

^a* Corresponding author: 1471057575@qq.com

Abstract

Currently, many equipment manufacturing enterprises in China lack effective management integration. While research on total factor productivity measurement and influencing factors exists, there is a lack of systematic research from the perspectives of different stakeholders, both inside and outside the enterprise market and government. To address this gap, this study examines the differences in demands for integrated management among enterprises of different ownership and sizes. Using the theory of value cocreation and Internet of Things technology, 273 enterprises in 16 cities in Shandong Province were sampled. The study also compares the impact of market fiscal and tax incentives on enterprise resource allocation and innovation performance, as well as the differences between "tangible and intangible" means of the market and government. The Internet of Things technology is utilized to build integrated management systems and verify the mechanisms of market incentives and government policies. Results reveal that market incentive policies have a differential effect on enterprises of different ownership and sizes, and the total factor productivity of sample enterprises is significantly and positively correlated with the strength of market incentive policy. Moreover, there are noticeable differences in the impact of government subsidy policies on enterprises of different sizes. Small and medium-sized enterprises do not respond significantly to fluctuations in government subsidy policies, while large enterprises are more sensitive to such fluctuations.