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The impact of network infrastructure on enterprise digital transformation ——A quasi-natural experiment from the “broadband China” Strategy

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  • Xiaofang Jia
  • Baojian Xie
  • Xingan Wang

Abstract

In this paper, a multi-period difference-in-difference model is constructed to investigate the impact of network infrastructure on enterprise digital transformation. The results show that network infrastructure has effectively promoted the digital transformation of enterprises. Meanwhile, as the scale of network infrastructure construction expands, the role of network infrastructure in promoting enterprise digital transformation will be enhanced. Based on the mechanism analysis, network infrastructure promotes enterprise digital transformation through two channels: easing corporate financing constraints and improving core technical capabilities. Furthermore, the role of network infrastructure in enterprise digital transformation is not invariable, the effect is more pronounced in non-state-owned enterprises, growth enterprises, manufacturing enterprises, and enterprises located in developed cities.

Suggested Citation

  • Xiaofang Jia & Baojian Xie & Xingan Wang, 2024. "The impact of network infrastructure on enterprise digital transformation ——A quasi-natural experiment from the “broadband China” Strategy," Applied Economics, Taylor & Francis Journals, vol. 56(12), pages 1363-1380, March.
    • Handle: RePEc:taf:applec:v:56:y:2024:i:12:p:1363-1380
    DOI: 10.1080/00036846.2023.2176450
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