ERIA

The Impact of E-commerce Competition on New Product Entry in the Manufacturing Sector: Evidence from the Republic of Korea’s Manufacturing Establishments

E-commerce has revolutionised the way firms and businesses operate and compete in the world economy. This paper examines the impact of e-commerce competition on new product entry in the manufacturing sector, using a unique dataset of the Republic of Korea’s manufacturing establishments. Our empirical results suggest that in the era of e-commerce competition, only manufacturers with advanced technological capabilities can survive and create new products to overcome the competition. Moreover, the manufacturers that are able to create new products may be targeting the export markets. This study contributes to the broader literature on the relationship between competition and product innovation by examining how e-commerce participation promotes the creation of new products by manufacturers seeking to survive in a more competitive market.

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ERIA Vision for the Digitalisation of Supply Chains in ASEAN and Japan

Vision for the Digitalisation of Supply Chains in ASEAN and Japan

The Association of Southeast Asian Nations (ASEAN) has established competitive production networks with Japan. However, to maintain the competitiveness of these networks, ASEAN and Japan must effectively respond to global trends, including increasing and diversifying supply chain risks, achieving carbon neutrality, embracing circular economy principles, and addressing human rights issues. The key lies in facilitating effective data sharing across end-to-end supply chains.

The European Union (EU) is currently advancing in the construction of data-sharing architectures such as the International Data Space and Catena-X. ASEAN and Japan should explore strategies to meet the growing demand for data-sharing across supply chains. To facilitate data-sharing in Asia, ERIA has convened a discussion group comprised of private sector and academia representatives. This group aims to explore the reasons for companies to share data, the associated benefits, and strategies for enhancing business operations through data sharing.

The vision outlined in this paper seeks to establish reliable supply chains characterised by transparency, connectivity, sustainability, and competitiveness, fostering collaboration between ASEAN and Japan. The goal is to address key challenges faced by ASEAN countries while promoting synergies between ASEAN and Japan. The realisation of this vision involves three main steps: (i) defining a clear mission and value proposition, (ii) identifying essential requirements and enablers, and (iii) developing specific use cases to achieve tangible benefits.

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