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Business environment and enterprise digital transformation

Author

Listed:
  • Luo, Yonggen
  • Cui, Huijie
  • Zhong, Huiyi
  • Wei, Changhua

Abstract

Digital transformation has become imperative for firms to survive in highly competitive societies. This study investigates the relationship between the business environment and enterprise digital transformation. The results show a significant positive relationship between the two. Further channel analysis indicates that attracting professional leadership of top managers, enhancing investment in digital technology, and increasing government subsidies related to digitalization provided by a better business environment are three possible channels that facilitate digital transformation. Overall, our study provides new insights on the determinants of digital transformation and offers supplementary evidence for companies to facilitate their pace of digital transformation.

Suggested Citation

  • Luo, Yonggen & Cui, Huijie & Zhong, Huiyi & Wei, Changhua, 2023. "Business environment and enterprise digital transformation," Finance Research Letters, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323006220
    DOI: 10.1016/j.frl.2023.104250
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    References listed on IDEAS

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    More about this item

    Keywords

    Business environment; Digital technology; Digital transformation; Government support;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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