IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v59y2024ics1544612323010553.html

Digital transformation and manufacturing company competitiveness

Author

Listed:
  • Sui, Xiaoning
  • Jiao, Shuaipeng
  • Wang, Yongming
  • Wang, Haijun

Abstract

Digital transformation is playing an increasingly important role in ensuring the sustainable development and economic growth of companies, particularly manufacturing companies. In light of this, this paper investigates the impact of digital transformation on the competitiveness of companies and the underlying mechanisms that drive this impact. The research findings indicate that digital transformation has a positive effect on the competitiveness of manufacturing companies, with a 1 % increase in the degree of digital transformation leading to a 0.015 % enhancement in company competitiveness. Digital transformation achieves this by elevating the total factor productivity, research and development intensity, and human capital of companies, thereby enhancing their overall competitiveness. These findings enrich and extend the research on the influence of digital transformation on manufacturing companies and provide important policy implications for enhancing the competitiveness of manufacturing companies through digital empowerment.

Suggested Citation

  • Sui, Xiaoning & Jiao, Shuaipeng & Wang, Yongming & Wang, Haijun, 2024. "Digital transformation and manufacturing company competitiveness," Finance Research Letters, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323010553
    DOI: 10.1016/j.frl.2023.104683
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612323010553
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.104683?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
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Arthur Lewbel, 1997. "Constructing Instruments for Regressions with Measurement Error when no Additional Data are Available, with an Application to Patents and R&D," Econometrica, Econometric Society, vol. 65(5), pages 1201-1214, September.
    2. Ron Adner & Phanish Puranam & Feng Zhu, 2019. "What Is Different About Digital Strategy? From Quantitative to Qualitative Change," Strategy Science, INFORMS, vol. 4(4), pages 253-261, December.
    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. Zhang, Chenrui & Wang, Yatong, 2024. "Is enterprise digital transformation beneficial to shareholders? Insights from the cost of equity capital," International Review of Financial Analysis, Elsevier, vol. 92(C).
    2. Mai, Ruidong, 2025. "Digital transformation and corporate donations from the perspective of legitimacy management," Research in International Business and Finance, Elsevier, vol. 73(PB).
    3. Bonhomme, Stphane & Robin, Jean-Marc, 2009. "Consistent noisy independent component analysis," Journal of Econometrics, Elsevier, vol. 149(1), pages 12-25, April.
    4. Chang He & Junzhi Zhang & Liukai Wang & Weiqing Wang & Fei Li, 2025. "Targeted poverty alleviation and corporate financial performance: The CSR strategy perspective," Australian Journal of Management, Australian School of Business, vol. 50(2), pages 631-653, May.
    5. Venky Nagar, "undated". "Organizational Design Choices in Retail Banking," Rodney L. White Center for Financial Research Working Papers 09-99, Wharton School Rodney L. White Center for Financial Research.
    6. François-Éric Racicot & Raymond Théoret, 2022. "Tracking market and non-traditional sources of risks in procyclical and countercyclical hedge fund strategies under extreme scenarios: a nonlinear VAR approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-56, December.
    7. Kun Wang & Bing Chen & Yuhong Li, 2024. "Technological, process or managerial innovation? How does digital transformation affect green innovation in industrial enterprises?," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-32, February.
    8. Markus Menz & Sven Kunisch & Julian Birkinshaw & David J. Collis & Nicolai J. Foss & Robert E. Hoskisson & John E. Prescott, 2021. "Corporate Strategy and the Theory of the Firm in the Digital Age," Journal of Management Studies, Wiley Blackwell, vol. 58(7), pages 1695-1720, November.
    9. Leifeng Zhang & Hui Wu & Yang Shen, 2025. "Unlocking the Digital Dividend: How Does Digitalization Promote Corporate Carbon Emission Reduction?," Sustainability, MDPI, vol. 17(16), pages 1-21, August.
    10. Millimet, Daniel L. & Tchernis, Rusty, 2008. "Estimating high-dimensional demand systems in the presence of many binding non-negativity constraints," Journal of Econometrics, Elsevier, vol. 147(2), pages 384-395, December.
    11. Cameron D. Miller & Richard D. Wang, 2024. "Product digitization and differentiation strategy change: Evidence from the book publishing industry," Strategic Management Journal, Wiley Blackwell, vol. 45(7), pages 1241-1272, July.
    12. Yuxuan Li & Xin Miao & Dequan Zheng & Yanhong Tang, 2019. "Corporate Public Transparency on Financial Performance: The Moderating Role of Political Embeddedness," Sustainability, MDPI, vol. 11(19), pages 1-17, October.
    13. Jinxiang Zang & Neilson Teruki & Sharon Yong Yee Ong & Yan Wang, 2025. "Can Enterprise Digitalization Promote Green Technological Innovation? Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 17(3), pages 1-18, February.
    14. Xiaoyu Zhou & Hong Xiao, 2026. "Does the solvency regulatory reform affect the maturity mismatch of life insurers? Evidence from China," Review of Quantitative Finance and Accounting, Springer, vol. 66(1), pages 427-484, January.
    15. Ma, Yong & Lv, Lin, 2023. "Financial development, financial instability, and fiscal policy volatility: International evidence," The North American Journal of Economics and Finance, Elsevier, vol. 64(C).
    16. Kirill S. Evdokimov & Andrei Zeleneev, 2023. "Simple Estimation of Semiparametric Models with Measurement Errors," Papers 2306.14311, arXiv.org, revised Nov 2025.
    17. Yuan Feng & Changfei Nie, 2024. "Digital technology innovation and corporate environmental, social, and governance performance: Evidence from a sample of listed firms in China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 3836-3854, September.
    18. Thomas Sampson, 2023. "Technology Gaps, Trade, and Income," American Economic Review, American Economic Association, vol. 113(2), pages 472-513, February.
    19. Todd Prono, 2008. "GARCH-based identification and estimation of triangular systems," Supervisory Research and Analysis Working Papers QAU08-4, Federal Reserve Bank of Boston.
    20. Lu, Hongwei & Li, Tingting & Li, Guojing & Luo, Qiyou & Gao, Mingjie, 2025. "Digital literacy and the rural cooking energy transition: Evidence from rural China," Energy Policy, Elsevier, vol. 198(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    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:eee:finlet:v:59:y:2024:i:c:s1544612323010553. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    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.