Background and Motivation
In today’s rapidly changing business landscape, the ability of enterprises to withstand shocks and adapt to crises has become more critical than ever. As digital transformation accelerates, understanding the underlying drivers of resilience is a top priority for both business leaders and policymakers. This research explores a crucial but often overlooked factor: the role of network infrastructure, such as broadband connectivity, in building enterprise resilience.
Methodology and Scope
Drawing on dynamic capabilities theory, the study employs a multi-period Difference-in-Difference (DID) model, using the nationwide “Broadband China” strategy as a natural experiment. This innovative approach enables the authors to examine how improvements in network infrastructure influence enterprise resilience, looking at both internal operations and external relationships. The analysis spans multiple years and considers firms of varying size, industry competitiveness, and technology intensity.
Key Findings and Contributions
The research uncovers several important insights:
Why It Matters
As companies face growing uncertainty from economic, technological, and geopolitical shocks, investing in digital infrastructure emerges as a powerful strategy to bolster corporate resilience and long-term success. The findings highlight the vital importance of national broadband initiatives and provide actionable guidance for firms and policymakers aiming to future-proof their organisations.
Practical Applications
Business leaders can leverage these findings by prioritising investment in digital infrastructure and accelerating digital transformation to strengthen crisis response capabilities. Policymakers, meanwhile, are encouraged to expand broadband access and promote innovative infrastructure projects, particularly for sectors and firms that stand to benefit most. Ultimately, this research supports a data-driven roadmap for enhancing enterprise resilience and unlocking sustained business growth in the digital age.
Discover high-quality academic insights in finance from this article published in China Finance Review International . Click the DOI below to read the full-text original!
China Finance Review International
News article
The impact of network infrastructure on firm resilience: evidence from a quasi-natural experiment from the “Broadband China” strategy
17-Jun-2025