Measuring Corporate Digital Transformation: Methodology, Indicators and Applications

Abstract

With the rapid development of data science, digital technology is integrating deeply with enterprise management, driving companies towards digital transformation to achieve sustainable development. However, digital transformation is a systematic and comprehensive process, posing challenges in accurately depicting firm-level digitalization. Hence, this study systematically reviews measurement methods for digital transformation across various themes related to enterprise digitalization. Existing literature predominantly employs questionnaire analysis, quantitative statistics, and text analysis to gauge the extent of digital transformation. In terms of indicator construction, existing literature mainly relies on input, process, and outcome variables to construct measurement indicators. Nevertheless, due to the subjectivity of questionnaires, the uniqueness of industry data, and the limitations of textual information, these methods and the indicators derived from them possess distinct applicability scopes. Refining the measurement of digital transformation should hinge on both the research objectives and the characteristics of the data. Furthermore, through the analysis of industry cases such as agriculture, manufacturing and service industries, this study also reveals the unique characteristics encountered by these industries in the process of digital transformation, provides a more detailed summary of measurement methods for these specific industries, and emphasizes the importance of selecting measurement methods according to industry characteristics.