Does platform integration unlock the value of digital infrastructure? Evidence from Chinese listed firms

This study examines how digital infrastructure affects firm productivity and highlights platform integration as a key enabling mechanism. Using a panel dataset of Chinese listed companies from 2014 to 2023, we employ a fixed-effects regression approach to assess the extent to which improvements in digital infrastructure enhance total factor productivity (TFP) at the firm level. In addition, the study investigates the moderating role of platform integration, positing that firms more deeply embedded in digital platform ecosystems are better positioned to capitalize on digital infrastructure to improve productivity outcomes. The empirical results demonstrate that digital infrastructure exerts a significantly positive effect on firm productivity. More importantly, the analysis shows that platform integration markedly strengthens this positive relationship, highlighting its essential function in converting digital infrastructure investments into measurable productivity gains. These findings highlight the importance of complementing tangible infrastructure investments with measures that foster platform ecosystem development and enterprise integration to fully unlock productivity gains, particularly in regions with developing digital foundations.