Exploring the mechanism of path-creating strategy for latecomers: a combined approach of econometrics and causal machine learning

In this paper, the traditional econometrics method and causal machine-learning method are combined to study the mechanism of a path-creating strategy of latecomers to influence latecomers’ catch-up performance. A total of 283 high-tech manufacturing enterprises listed on the Shanghai and Shenzhen stock exchanges from 2007 to 2019 were selected for the study. OLS linear regression model verifies that path-creating has a positive impact on latecomers’ technological catch-up performance, technological capability plays an intermediary role between path-creating and technology catch-up performance, technological innovation appropriability positively moderates the effect of path-creating on technological capability, and technological innovation cumulativeness negatively moderates the effect of path-creating on technological catch-up but positively moderate the effect of technological capability on catch-up performance. Through machine learning, on the one hand, a conclusion basically consistent with the linear regression model is obtained, but on the other hand, a more heterogeneous situation is presented. Through analyses of the individual treatment effect of a path-creating strategy of latecomers, the Shapley value graph shows the complex influence of different features on the treatment effect of the enterprise using the path-creating strategy. Through the decision tree, some more complex patterns are found. In addition, the decision tree model based on causal analysis can also assist enterprises in making strategic decisions.

Yuanyang Teng, Yicun Li, Xiaobo Wu