DOI: 10.1177/21582440261491504 ISSN: 2158-2440

Research on the Factors Influencing Technological Innovation of Equipment Manufacturing Enterprises Based on the Entropy Weight-DEMATEL Method

Xin Huang, Shunqiang Ye

As micro-level operational units within the equipment-manufacturing sector, enterprises constitute the critical foundation upon which technological upgrading of the entire value chain depends. This paper examines the technological-innovation processes of these enterprises through an integrated qualitative–quantitative approach. Qualitatively, we synthesise extant literature and expert interviews to identify eleven key determinants, categorised into five analytical dimensions: external collaboration, policy adaptation, production readiness, project planning, and innovation management. These determinants are operationalised within a hierarchical evaluation-index system. Quantitatively, we propose a hybrid entropy weight–DEMATEL methodology that combines the entropy-weight method’s capacity for generating objective indicator weights with DEMATEL’s ability to discriminate causal from effect factors. This integrated approach yields (i) objective weights reflecting each indicator’s relative importance and (ii) centrality–causality measures classifying each factor as either a driver or an outcome. By triangulating entropy-weighted importance scores with DEMATEL-generated cause–effect classifications, we pinpoint the critical leverage points that most strongly influence firm-level technological-innovation performance. Based on these empirical findings, we formulate targeted policy recommendations aimed at enhancing the overall quality of technological innovation across the Chinese equipment-manufacturing industry.