Exploring the Impact of Blockchain Technology Application on Firm Dynamic Capability Development and Firm Performance : Evidence from Chinese Firms

This study examines the impact of blockchain technology application on firm performance, focusing specifically on the influence of dynamic capabilities in this relationship. Using panel data from 1,305 observations of Chinese A-share listed firms between 2016 and 2023, the analysis employs fixed effects regression models to test the proposed relationships. Python was used to conduct automated text analysis of blockchain-related disclosures in corporate annual reports, and the resulting data were processed and analyzed using Excel and Stata 17.0. Fixed effects regression results demonstrate that blockchain technology application positively affects firm performance via enhanced absorptive and innovative capabilities, whereas adaptive capability exhibits no significant effect. Heterogeneity analysis further reveals that the performance impact of blockchain is more pronounced in manufacturing firms. Theoretically, the study enriches dynamic capability theory by demonstrating how external technologies like blockchain are not inherently value-generating but require firm-specific capabilities to translate potential into performance. Practically, the results suggest that firms should align their blockchain adoption strategies with their existing capability structures and industry-specific demands.