Public data accessibility and the Matthew effect in corporate digital competition: evidence from China

In the digital economy, data as a production factor plays a strategic role in shaping market competition. This study theoretically analyzes and empirically tests the existence and formation mechanisms of the Matthew effect in corporate digital competition. It further examines whether public data accessibility can mitigate this effect. We find that large firms obtain significantly stronger market share gains from digital transformation, which indicates the presence of the Matthew effect in product markets. In contrast, higher levels of public data accessibility promote strategic restructuring among large firms and reduce passive imitation by small and medium-sized enterprises (SMEs). As a result, the Matthew effect in corporate digital competition is effectively alleviated. Heterogeneity analyses show that this mitigating effect is stronger in regions with higher levels of public data accessibility and stronger government attention to public data governance. This study provides new evidence on firms’ product market competition behavior in the digital economy. It also highlights the value of public data from the perspective of SMEs. The findings offer policy relevant implications for regional data factor governance and provide guidance for firms seeking to enhance value creation through the use of public data.