Digital transformation and firm cost stickiness: Evidence from China

Chen, Yufeng; Xu, Jing

doi:10.1016/j.frl.2022.103510

Cited by 101 publications

(24 citation statements)

References 17 publications

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“…The application of digital technology also effectively enhances the risk control ability of the enterprise's internal physical and financial assets, strengthens the control of the enterprise's costs, greatly improves the enterprise's decision-making ability, and facilitates the enterprise's innovation cooperation. In summary, the application of digital technology reduces the cost of cooperation [32], reshapes the inter-enterprise innovation collaboration system, makes it easier for enterprises to gain advantages in the complex competitive environment, and facilitates the establishment of new green innovation cooperation.…”

Section: ) Toe Framework From the Perspective Of Digital Empowermentmentioning

confidence: 99%

Digital Development Influencing Mechanism on Green Innovation Performance: A Perspective of Green Innovation Network

Liu

2023

IEEE Access

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Digital development offers groundbreaking opportunities for environmental monitoring and protection, as well as for maintaining the overall health of the planet. Through judicious use, global sustainability can be promoted. This study constructs a green innovation network using the green innovation patent data of listed companies of new energy vehicles as empirical evidence. The influence of network structure on green innovation performance is analyzed, and network structure indicators with positive effects are identified. The Exponential Random Graph Model (ERGM) is used to analyze the evolutionary influence on the structure of green innovation network from network configuration as endogenous attributes and digital characteristics as exogenous attributes. We explore the mechanism of improving green innovation performance by digitalization through enhancing the development of green innovation network. The results show that the enhanced structure of innovation network has a significant positive effect on the improvement of green innovation performance. Both "star" and "closed triangle" network configurations can promote the establishment of green innovation cooperation. In terms of digital characteristics, digital technology and digital organization can positively promote the development of green innovation network, while digital environment does not show a significant facilitating effect. Because of the tremendous expansion of digital technology adoption and the necessary infrastructure, enterprises can bridge the technology gap by optimizing digital technology and digital organizations. Enterprises can improve green innovation performance by optimizing digital technology and digital organization to promote the establishment of green innovation cooperation. The government should avoid the ineffective empowerment of digital environment construction on green innovation performance.

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Section: ) Toe Framework From the Perspective Of Digital Empowermentmentioning

confidence: 99%

Digital Development Influencing Mechanism on Green Innovation Performance: A Perspective of Green Innovation Network

Liu

2023

IEEE Access

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“…In summary, digital transformation can generate numerous growth opportunities for firms. First, digital transformation can lower both internal and external transaction costs and reduce managerial and production costs; in addition, it can restrain overly optimistic expectations within the management, significantly inhibiting cost stickiness (Chen & Xu, 2023). Second, digital transformation facilitates research and development (R&D) investment; stimulates firm innovation outcomes and enhances innovation efficiency; and promotes technological innovation and productivity growth (Gaglio et al, 2022;Guo et al, 2023;Li et al, 2023;Zhang et al, 2023).…”

Section: Related Literature Overviewsmentioning

confidence: 99%

“…Second, digital transformation can improve operating costs, innovation performance, and market competition, among others (Chen & Xu, 2023;Guo et al, 2023;Li et al, 2023;Zhai et al, 2022;Zhang et al, 2023). Notably, the current research is aimed at exploring the interconnection of digital transformation (its peer effect) and longterm firm investment.…”

Section: Introductionmentioning

confidence: 99%

“…Our findings, as discussed in detail below, may fill knowledge gaps in terms of the interaction between peers' digital transformation and long‐term firm investment. First, compared with the digital transformation measure proposed by Zhai et al (2022) and Chen and Xu (2023), the current study expands the existing dictionary of keywords related to digital transformation into a more comprehensive list. This research also employs a reverse maximum matching algorithm to precisely measure the word frequency of digital transformation.…”

Section: Introductionmentioning

confidence: 99%

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Hear all parties: Peer effect of digital transformation on long‐term firm investment in China

Chang,

Li,

Xiao

2023

Manage Decis Econ

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This study explores the increasing significance of digital transformation and its peer effects as key factors influencing the efficiency of long‐term firm investment. A complete digital transformation dictionary is established in this study containing 179 keywords; the frequency of digital‐transformation‐related words is determined using textual mining technology and a reverse maximum matching algorithm. The effects of digital transformation, including peer effect, on long‐term firm investment are investigated using firm‐level panel data analysis. Our empirical findings demonstrate an increase in firms' digital transformation from 2011 to 2020. Digital transformation appears to significantly reduce long‐term firm investment. Industrial peers' digital transformation prohibits a focal firm's long‐term investment, marking a noteworthy divergence from the financial heterogeneous features of focal and peer firms. The digital transformation of industrial peers positively affects the long‐term investment of focal firms by promoting an equity investment structure and an asset‐light operation strategy.

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“…Some scholars have also explored the connection with the digital economy in terms of the degree of industrial integration (Xin et al, 2023), the growth of regenerative energy (Hwang, 2023; B. Wang et al, 2023; Zheng & Wong, 2024), new government-business relations (Y. Chen et al, 2023), global energy transition (Onifade et al, 2021; Shahbaz et al, 2022), and reduce carbon emissions (Z.…”

Section: Literature Reviewmentioning

confidence: 99%

Research on the Construction of Digital Economy Index System Based on K-means-SA Algorithm

Su,

Dong,

et al. 2023

Sage Open

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The digital economy is developing rapidly worldwide, which is of great strategic significance in leading and driving the process of high-quality and high-efficiency development of the economy. It has gradually become a new engine to promote China’s economic growth. Therefore, it is vital to establish a digital economy indicator system. In this context, according to the connotation of digital economy, comprehensively consider the four dimensions of digital foundation, digital application, digital innovation and digital benefit, and build a full-scale digital economy indicator system. However, some previous literature proposed operating the K-means clustering algorithm in optimizing the index system. The algorithm, susceptible to the initial selection of cluster center, generates completely different clustering results with other random seed points and is thus unsuitable for optimizing the index system. Based on this, the advantages of GRA, SA, and K-means algorithms are combined to propose a K-means-SA algorithm that can obtain the global optimal solution. Then, by combining the K-means SA algorithm and the rough set algorithm, the constructed index system is further optimized. Ultimately, it establishes a set of all-round, multi-system and multi-dimensional digital economy index systems, which is of great reference significance for formulating relevant policies, provides scientific index support for the subsequent extension of digital economy theory, and promotes the benign growth of the worldwide economy.

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Digital transformation and firm cost stickiness: Evidence from China

Cited by 101 publications

References 17 publications

Digital Development Influencing Mechanism on Green Innovation Performance: A Perspective of Green Innovation Network

Digital Development Influencing Mechanism on Green Innovation Performance: A Perspective of Green Innovation Network

Hear all parties: Peer effect of digital transformation on long‐term firm investment in China

Research on the Construction of Digital Economy Index System Based on K-means-SA Algorithm

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