Digital transformation and total factor productivity: Empirical evidence from China.
Digital transformation plays a crucial role in improving the quality development of companies in this era of digital economy with ever-changing technologies. This paper empirically investigates the impact of corporate digital transformation on total factor productivity and the mechanism of action, u...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Public Library of Science (PLoS)
2023-01-01
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| Series: | PLoS ONE |
| Online Access: | https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0292972&type=printable |
| _version_ | 1797649574884540416 |
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| author | Zhonghao Lei Dongmei Wang |
| author_facet | Zhonghao Lei Dongmei Wang |
| author_sort | Zhonghao Lei |
| collection | DOAJ |
| description | Digital transformation plays a crucial role in improving the quality development of companies in this era of digital economy with ever-changing technologies. This paper empirically investigates the impact of corporate digital transformation on total factor productivity and the mechanism of action, using A-share listed companies in Shanghai and Shenzhen from 2011-2021 as the research sample, and found that the digital transformation of companies significantly improves total factor productivity, with the plausibility of the findings being verified by a series of robustness tests. Based on the heterogeneity study, it is found that such effect is stronger for private companies, non-high-tech companies, and companies with a high degree of industry competition. The mechanism test indicates that digital transformation facilitates total factor productivity through four ways: strengthening company technological innovation, reducing operational costs, increasing resource allocation efficiency, and improving human capital structure. The findings of this paper support a better understanding of the micro effects of digital transformation and provide empirical evidence for policy formulation and adjustment. |
| first_indexed | 2024-03-11T15:49:04Z |
| format | Article |
| id | doaj.art-83fe14aa44794d1abfba4d9f35e3d6f7 |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-03-11T15:49:04Z |
| publishDate | 2023-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-83fe14aa44794d1abfba4d9f35e3d6f72023-10-26T05:31:50ZengPublic Library of Science (PLoS)PLoS ONE1932-62032023-01-011810e029297210.1371/journal.pone.0292972Digital transformation and total factor productivity: Empirical evidence from China.Zhonghao LeiDongmei WangDigital transformation plays a crucial role in improving the quality development of companies in this era of digital economy with ever-changing technologies. This paper empirically investigates the impact of corporate digital transformation on total factor productivity and the mechanism of action, using A-share listed companies in Shanghai and Shenzhen from 2011-2021 as the research sample, and found that the digital transformation of companies significantly improves total factor productivity, with the plausibility of the findings being verified by a series of robustness tests. Based on the heterogeneity study, it is found that such effect is stronger for private companies, non-high-tech companies, and companies with a high degree of industry competition. The mechanism test indicates that digital transformation facilitates total factor productivity through four ways: strengthening company technological innovation, reducing operational costs, increasing resource allocation efficiency, and improving human capital structure. The findings of this paper support a better understanding of the micro effects of digital transformation and provide empirical evidence for policy formulation and adjustment.https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0292972&type=printable |
| spellingShingle | Zhonghao Lei Dongmei Wang Digital transformation and total factor productivity: Empirical evidence from China. PLoS ONE |
| title | Digital transformation and total factor productivity: Empirical evidence from China. |
| title_full | Digital transformation and total factor productivity: Empirical evidence from China. |
| title_fullStr | Digital transformation and total factor productivity: Empirical evidence from China. |
| title_full_unstemmed | Digital transformation and total factor productivity: Empirical evidence from China. |
| title_short | Digital transformation and total factor productivity: Empirical evidence from China. |
| title_sort | digital transformation and total factor productivity empirical evidence from china |
| url | https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0292972&type=printable |
| work_keys_str_mv | AT zhonghaolei digitaltransformationandtotalfactorproductivityempiricalevidencefromchina AT dongmeiwang digitaltransformationandtotalfactorproductivityempiricalevidencefromchina |