IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v44y2023i4p2110-2124.html
   My bibliography  Save this article

The impact of enterprise digital transformation on financial performance—Evidence from Mainland China manufacturing firms

Author

Listed:
  • Li Yonghong
  • Shao Jie
  • Zhan Ge
  • Zhou Ru

Abstract

Focusing on digital transformation of manufacturing enterprises, this paper investigates the relationship between digital transformation and financial performance of manufacturing enterprises through descriptive statistical analysis, correlation analysis, multilayer linear regression analysis, and group testing of the impact of digital transformation stages on the financial performance of enterprises, taking listed manufacturing companies that implement digital transformation as a sample. The research results show that there is a significant positive impact of digital transformation on financial performance of manufacturing enterprises; the more digitalized the information technology (IT) architecture is when enterprises undergo digital transformation, the closer to hybrid cloud platform + agile manufacturing, the higher the inventory turnover rate and total asset turnover rate of enterprises will be; in the early stage of digital transformation of enterprises, the profitability performance of enterprises will be reduced. However, as the digitalization process of enterprises deepens, the net sales margin and total asset return of enterprises will gradually increase, which may be due to the reason that the impact of enterprise digital transformation on profitability performance has a certain lag.

Suggested Citation

  • Li Yonghong & Shao Jie & Zhan Ge & Zhou Ru, 2023. "The impact of enterprise digital transformation on financial performance—Evidence from Mainland China manufacturing firms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2110-2124, June.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:4:p:2110-2124
    DOI: 10.1002/mde.3805
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3805
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3805?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mikalef, Patrick & Pateli, Adamantia, 2017. "Information technology-enabled dynamic capabilities and their indirect effect on competitive performance: Findings from PLS-SEM and fsQCA," Journal of Business Research, Elsevier, vol. 70(C), pages 1-16.
    2. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. FeCheng Ma & Farhan Khan & Kashif Ullah Khan & Si XiangYun, 2021. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study," SAGE Open, , vol. 11(4), pages 21582440211, November.
    2. Ahmad Ibrahim Aljumah & Mohammed T. Nuseir & Md. Mahmudul Alam, 2021. "Traditional marketing analytics, big data analytics and big data system quality and the success of new product development," Post-Print hal-03538161, HAL.
    3. Papanagnou, Christos & Seiler, Andreas & Spanaki, Konstantina & Papadopoulos, Thanos & Bourlakis, Michael, 2022. "Data-driven digital transformation for emergency situations: The case of the UK retail sector," International Journal of Production Economics, Elsevier, vol. 250(C).
    4. Muhammad Irfan & Mingzheng Wang & Naeem Akhtar, 2019. "Impact of IT capabilities on supply chain capabilities and organizational agility: a dynamic capability view," Operations Management Research, Springer, vol. 12(3), pages 113-128, December.
    5. Akhtar, Pervaiz & Khan, Zaheer & Tarba, Shlomo & Jayawickrama, Uchitha, 2018. "The Internet of Things, dynamic data and information processing capabilities, and operational agility," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 307-316.
    6. Ciampi, Francesco & Faraoni, Monica & Ballerini, Jacopo & Meli, Francesco, 2022. "The co-evolutionary relationship between digitalization and organizational agility: Ongoing debates, theoretical developments and future research perspectives," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    7. Siddharth Gaurav Majhi & Ambuj Anand & Arindam Mukherjee & Nripendra P. Rana, 2022. "The Optimal Configuration of IT-Enabled Dynamic Capabilities in a firm’s Capabilities Portfolio: a Strategic Alignment Perspective," Information Systems Frontiers, Springer, vol. 24(5), pages 1435-1450, October.
    8. Fuping Bai & Donghui Liu & Kaiyun Dong & Mengting Shang & Aiguo Yan, 2023. "Research on How Executive Connections Affect Enterprise Digital Transformation: Empirical Evidence from China," Sustainability, MDPI, vol. 15(3), pages 1-17, January.
    9. Sheshadri Chatterjee & Ranjan Chaudhuri & Antonino Galati & Demetris Vrontis, 2021. "Adoption of Ubiquitous CRM for Operational Sustainability of the Firms: Moderating Role of Technology Turbulence," Sustainability, MDPI, vol. 13(18), pages 1-18, September.
    10. Ahmed Saleh Al-Matari & Rozita Amiruddin & Khairul Azman Aziz & Mohammed A. Al-Sharafi, 2022. "The Impact of Dynamic Accounting Information System on Organizational Resilience: The Mediating Role of Business Processes Capabilities," Sustainability, MDPI, vol. 14(9), pages 1-22, April.
    11. Audrey Stolze & Klaus Sailer, 2022. "Advancing HEIs’ third-mission through dynamic capabilities: the role of leadership and agreement on vision and goals," The Journal of Technology Transfer, Springer, vol. 47(2), pages 580-604, April.
    12. Li, Shenxue & Easterby-Smith, Mark & Hong, Jacky F.L., 2019. "Towards an understanding of the nature of dynamic capabilities in high-velocity markets of China," Journal of Business Research, Elsevier, vol. 97(C), pages 212-226.
    13. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Kumar, Ajay & Aránega, Alba Yela & Biswas, Baidyanath, 2023. "Development of an integrative model for electronic vendor relationship management for improving technological innovation, social change and sustainability performance," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    14. Patrick Mikalef & Ilias O. Pappas & John Krogstie & Michail Giannakos, 2018. "Big data analytics capabilities: a systematic literature review and research agenda," Information Systems and e-Business Management, Springer, vol. 16(3), pages 547-578, August.
    15. Chen, Yantai & Luo, Haibei & Chen, Jin & Guo, Yanlin, 2022. "Building data-driven dynamic capabilities to arrest knowledge hiding: A knowledge management perspective," Journal of Business Research, Elsevier, vol. 139(C), pages 1138-1154.
    16. Michael Yao-Ping Peng & Yong-Sheng Chang, 2023. "Do Social Network Relationships and Overseas Market Orientation Affect SMEs’ International Performance? A Dynamic Internationalization Capability Perspective," SAGE Open, , vol. 13(1), pages 21582440231, March.
    17. Rialti, Riccardo & Zollo, Lamberto & Ferraris, Alberto & Alon, Ilan, 2019. "Big data analytics capabilities and performance: Evidence from a moderated multi-mediation model," Technological Forecasting and Social Change, Elsevier, vol. 149(C).
    18. Baoshan Ge & Liyi Zhao, 2022. "The impact of the integration of opportunity and resources of new ventures on entrepreneurial performance: The moderating role of BDAC‐AI," Systems Research and Behavioral Science, Wiley Blackwell, vol. 39(3), pages 440-461, May.
    19. Alexander Geyda & Igor Lysenko, 2019. "Modeling of Information Operations Effects: Technological Systems Example," Future Internet, MDPI, vol. 11(3), pages 1-17, March.
    20. Jiao, Jian-ling & Zhang, Xiao-lan & Tang, Yun-shu, 2020. "What factors determine the survival of green innovative enterprises in China? -- A method based on fsQCA," Technology in Society, Elsevier, vol. 62(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:44:y:2023:i:4:p:2110-2124. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.