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How Does Enterprises’ Digital Transformation Impact the Educational Structure of Employees? Evidence from China

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  • Yituan Liu

    (School of Business Administration, Shandong University of Finance and Economics, Jinan 250014, China)

  • Yabin Bian

    (School of Business Administration, Shandong University of Finance and Economics, Jinan 250014, China)

  • Wenhao Zhang

    (School of Accountancy, Shandong University of Finance and Economics, Jinan 250014, China)

Abstract

Digital transformation has had extensive impacts on enterprises and increased the concern that employees will be replaced by digital technologies. Achieving sustainability at the human resource level is a problem for enterprises. In this case, improving academic qualifications is regarded by most Chinese employees as an approach to improving their competitive advantages. Based on the panel data of China’s listed enterprises from 2014 to 2020, the twice fixed effects (TWFE) and continuous difference-in-differences (DID) methods are used to study the impact of enterprises’ digital transformation on employees’ educational structure (EES). The results show that enterprises’ digital transformation has a significantly positive impact on EES. For enterprises, specifically, the digital transformation increases the demand for employees with undergraduate degrees and reduces the demand for employees with high school degrees and below. The above results remain significant after controlling for endogeneity. However, the impact of digital transformation on employees with graduate degrees and above and associate degrees is not significant. We explain the above phenomena from the technological change assumption, the concept of human capital specificity, and the resource-based view. Results in this study provide references for employees to balance study or find a job and are beneficial for enterprises seeking to take advantage of digital transformation. Furthermore, the results can provide suggestions for achieving sustainability at the human resource level for enterprise development.

Suggested Citation

  • Yituan Liu & Yabin Bian & Wenhao Zhang, 2022. "How Does Enterprises’ Digital Transformation Impact the Educational Structure of Employees? Evidence from China," Sustainability, MDPI, vol. 14(15), pages 1-25, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:15:p:9432-:d:877822
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    2. Jing Wang & Zeyu Xing & Rui Zhang, 2023. "AI technology application and employee responsibility," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-17, December.

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