IT Infrastructure Innovation in China’s Financial Services Industry: Implications for Firm Performance under the Xinchuang Initiative

Information Technology (IT) infrastructure provides foundational resources for supporting IT applications and enables organizations to conduct efficient and rigorous business operations. Focusing on the financial services industry (FSI), this study aims to examine FSI firm performance impacted by China’s Xinchuang, an initiative that relates to IT Innovation because it aims transiting the IT infrastructure in China to domestically developed technologies by 2027. Drawing from neo-institutional theory and NIST’s Enterprise Architecture (EA) framework, this study proposes a three-stage approach for FSI firms to adopt during the mandated Xinchuang transition. Modeling data on firms’ IT implementation, deployed domestic information systems, and business alignment, we comprehensively analyze Xinchuang’s impact on FSI firms’ performance. This study provides strategic guidance for FSI firms within the Xinchuang context, helping them align IT investment strategies during the transition. Additionally, it extends neo-institutional theory and its application in information systems (IS) research.