Does digital transformation enhance a firm's performance? Evidence from China

Zhai, Huayun; Min, Yang; Chan, Kam C.

doi:10.1016/j.techsoc.2021.101841

Cited by 316 publications

(204 citation statements)

References 28 publications

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“…The existing literature on econometric analysis of digital transformation mainly uses textual analysis method and questionnaire methods to quantify the digital transformation (Chen et al, 2021; Llopis‐Albert et al, 2021). The textual analysis method was used to capture the vocabulary related to digital transformation (Guo et al, 2022; Zhai et al, 2022). Specifically, companies disclose the extent of their digitalization in the form of texts, and therefore the frequency of relevant terms was accounted from their annual financial reports.…”

Section: Variable Description and Methodologymentioning

confidence: 99%

“…First, many studies have explored the impact of digital transformation on corporate sustainable development, mainly based on a literature analysis approach (Zhu et al, 2021). We attempt to quantify digital transformation using a textual analysis approach and to empirically test the impact of digital transformation on environmental performance (Zhai et al, 2022). Secondly, theoretical arguments were built to extend the literature on digital transformation, and we explained how digital transformation enhances environmental performance from two new perspectives: stakeholder theory and information processing theory.…”

Section: Introductionmentioning

confidence: 99%

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Digital transformation and corporate environmental performance: The moderating role of board characteristics

Chen

Hao

2022

Corp Soc Responsibility Env

157

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Digital transformation, board characteristics, and environmental performance are increasingly important in the field of corporate sustainability. However, despite the growing literature on digital transformation, there is a paucity of literature that considers board characteristics. This paper aims to fill this gap by exploring the relationship between digital transformation and environmental performance from the perspective of board characteristics. Chinese listed companies from 2010 to 2019 were taken as the original data, the moderating effect of the board characteristics was tested by using the moderating effect model. We find that digital transformation can significantly improve corporate environmental performance. A low willingness to digital transformation was showed in the board of directors with age diversity, nationality diversity, shareholding concentration, and political connections. In contrast, digital transformation strategies were preferred in the boards with more female directors and higher educational backgrounds. Our study is of significant value for companies undergoing digital transformation.

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Section: Variable Description and Methodologymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Digital transformation and corporate environmental performance: The moderating role of board characteristics

Chen

Hao

2022

Corp Soc Responsibility Env

157

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“…Third, the digital economy has obvious high permeability and high synergy. The combination of information, data, and other factors with traditional factors has substantially improved the productivity and allocation efficiency of factors (Zhai et al, 2022). The rise of the digital economy has also transformed traditional organizational structures and business processes towards networking, flattening, and flexibility, thereby improving the degree of factor misallocation (Kretschmer and Khashabi, 2020).…”

Section: Theoretical Analysis and Research Hypothesismentioning

confidence: 99%

Exploring the Impact of the Digital Economy on Carbon Emission Efficiency Under Factor Misallocation Constraints: New Insights From China

Liu

et al. 2022

Front. Environ. Sci.

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The digital economy has introduced far-reaching innovations in the fields of government governance, enterprise production, and social operation. How to motivate the economic development mode towards a low-carbon and greenway transformation through the digital economy is a major issue concerning the Chinese government. However, there is scarce evidence to interpret the role mechanism of the digital economy on carbon emission efficiency from the factor misallocation scenario. Taking a database from 30 provincial-level administrative regions for the period from 2011 to 2019 in China as an example, the paper examines the effect of the digital economy on carbon emission efficiency, as well as explores its role mechanism deeply in terms of factor misallocation (capital misallocation and labor misallocation). The results suggest that there is a significant potential for the digital economy to contribute to carbon emission efficiency, as well as this finding, is valid when considering both the endogeneity issue and a series of robustness checks. Also, the digital economy can significantly contribute to carbon efficiency in both southern and northern regions, but more strongly in the northern region. Besides, the digital economy can inhibit the factor misallocation (labor misallocation and capital misallocation) level which ultimately improves carbon emission efficiency. Finally, as a digital economy, it can positively impact carbon efficiency in the long run by mitigating factor misallocation (labor misallocation and capital misallocation).

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“…Second, enterprises that have completed digital transformations tend to have lower fixed operating costs and higher sales (Zhai et al, 2022), leading to lower operating leverage and business risks. On the one hand, digital transformation empowers enterprise assets, equipment, and human resources.…”

Section: Mechanisms Underlying the Impact Of Digital Transformation O...mentioning

confidence: 99%

Does Digital Transformation Promote Enterprise Development?

Liu

Zhang

Zhu

2022

Journal of Organizational and End User Computing

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With the aim of exploring how digital transformation impacts enterprise development in China, this study takes Chinese A-share listed enterprises from 2007 to 2020 as the research sample and constructs a digital transformation index and an enterprise development index. The impact of digital transformation on enterprise development and its mechanisms are investigated. The empirical results show the following findings. First, digital transformation can significantly promote enterprise development. Second, the effect of digital transformation on enterprise development is stronger in enterprises located in inland regions compared to in coastal regions, and is more powerful in enterprises with high levels of development than in those lagging in development. Third, digital transformation can benefit enterprise development by alleviating financing constraints, effectively reducing business risks, and driving technological innovation. Fourth, China’s economic policy uncertainty is an important external factor weakening the role of digital transformation in driving enterprise development.

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Does digital transformation enhance a firm's performance? Evidence from China

Cited by 316 publications

References 28 publications

Digital transformation and corporate environmental performance: The moderating role of board characteristics

Digital transformation and corporate environmental performance: The moderating role of board characteristics

Exploring the Impact of the Digital Economy on Carbon Emission Efficiency Under Factor Misallocation Constraints: New Insights From China

Does Digital Transformation Promote Enterprise Development?

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