Asian Journal of Economics, Business and Accounting

Against the background of global supply-chain restructuring and intensifying homogenised competition, this study examines whether international standardisation is associated with stronger corporate competitive breakthrough capability among Chinese manufacturing firms. Using panel data for China’s A-share listed manufacturing companies from 2011 to 2024, the study constructs a comprehensive Competitive Breakthrough Capability (CBC) index through the entropy method and measures firm-level international standard adoption efficiency by combining the degree and speed of alignment with international standards. Baseline estimations using firm and year fixed effects indicate a statistically significant positive relationship between international standardisation and CBC. The finding remains stable across alternative variable measures, sample exclusions, high-dimensional fixed effects, a one-period lag specification, and Propensity Score Matching. Mechanism tests further show that international standardisation is positively associated with invention patent applications and negatively associated with the absolute value of the SA index, supporting substantive innovation and the mitigation of financing constraints as relevant transmission channels. Heterogeneity analysis indicates that the relationship is more pronounced among high-tech enterprises, state-owned enterprises, and firms operating in highly competitive industries. Overall, the findings suggest that alignment with international standards may support firms in strengthening innovation capacity, easing financing constraints, and improving their ability to move beyond low-end homogeneous competition.