Effect of digital transformation on innovation performance in China: corporate social responsibility as a moderator

Abstract

Introduction: In the digital economy, digital transformation (DT) is a deliberate decision to improve organizational procedures, alter production processes, introduce precision marketing, and more, ultimately impacting how well businesses innovate. This is why the current article investigates the effect of DT and the firm’s innovation performance and the boundary condition of corporate social responsibility (CRS).Method: This study proposed a conceptual research model for the effect of DT on innovation performance and discussed the boundary condition of CRS. We collected China’s listed A-share firms’ data to examine the proposed hypotheses statistically. After Hausman test, the current study adopted fixed-effect regression, examined the heterogeneity issues resulting from different industry classifications, and robustness test for the correctness of the results.Results and Implications: The following main conclusions are drawn: 1) DT can significantly enhance product innovation performance; 2) DT can significantly improve process innovation performance; 3) There is a time lag effect on the innovation performance (both product and process innovation performance) of the previous period on the innovation performance of the current period; 4) CSR positively moderates the role of DT on innovation performance; and 5) The impact of DT is heterogeneous across industries and patent. This study not only enriched the literature on DT and innovation performance but also provided the guidelines to promote digital transformation at the firm level.

Implementation of Quality Management Practices and Firm’s Innovation Performance: Mediation of Knowledge Creation Processes and Moderating role of Digital Transformation

“…Additionally, positive effect of social trust was also strengthened on innovation. L. Wang and Yan (2023) research on listed companies of China and findings supported that DIT had significant and increasing impact on product's IP. Additionally, timelagged impact on both types of IP (process and product) was also identified and DIT effect across various industries was heterogeneous.…”

“…According to Vial (2019), digital transformation (DIT) is a process where organizations react to emergent environmental changes through digitalized technologies to produce innovative ways of creating value. Companies outline DIT as a related structural modification in the direction of technologies like cloud computing and big data (L. Wang & Yan, 2023). Current industrial revolution, I4.0 has opened up prospects for digitalized transition.…”

“…Digital Transformation (DIT) is a change and disruption process, wherein value is created by the companies utilizing the strategic responses (Deroncele-Acosta, Palacios-Núñez, & Toribio-López, 2023). DIT is bringing the wave of transformation in all industries and countries of the world through application of digitalized technology to stimulate superior quality development, exclusively related to sustainable organizational objectives (L. Wang & Yan, 2023).…”

The effect of digital zakat and accounting on corporate sustainability through financial transparency

“…This study emphasizes the bigger picture of how digital Zakat may affect business sustainability. With corporate social responsibility acting as a mediator, Wang and Yan (2023) Jauhari, Yusoff, and Kassim (2023) investigate the possible contribution of Islamic fintech in Zakat institutions to improving Asnaf micro-entrepreneurs' access to capital. This research has implications for how Zakat institutions, with the help of fintech, might contribute to economic sustainability and poverty reduction in line with corporate sustainability goals, despite focusing on personal financial access.…”

“…Moreover, the pivotal role of digital accounting in fostering stakeholder engagement for sustainability init iatives has been extensively examined. Wang and Yan (2023) underscored the significance of digital accounting in augmenting stakeholder engagement, with digital platforms enabling companies to interact with stakeholders, gather valuable feedback, and collaborate on sustainability projects, thereby fortifying their sus tainability endeavors. Finally, studies such as Wang (2023) research have shed light on how digital accounting systems empower companies to allocate resources more efficiently for sustainability projects.…”