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The impact of digital transformation on firm productivity: From the perspective of sustainable development

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  • Song, Changhao
  • Han, Minchun
  • Yuan, Hankun

Abstract

This paper analyzes the impact of enterprise digital transformation on total factor productivity and its mechanism at the theoretical level, and then uses the data of China's listed companies from 2010 to 2021 for empirical tests. The study shows that digital transformation significantly improves total factor productivity of enterprises, and the improvement effect is more obvious for non-state-owned enterprises, non-high-tech enterprises and enterprises in high-concentration industries. The mechanism test shows that improving firms’ ESG performance to achieve sustainable development is an important path for digital transformation to increase total factor productivity. In addition, the development of regional Fintech will positively affect the improvement effects of digital transformation and ESG performance on total factor productivity.

Suggested Citation

  • Song, Changhao & Han, Minchun & Yuan, Hankun, 2025. "The impact of digital transformation on firm productivity: From the perspective of sustainable development," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s154461232500176x
    DOI: 10.1016/j.frl.2025.106912
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    Cited by:

    1. Yang, Hongwei & Zhi, Hui & Wang, Zhiheng, 2026. "Financial technology, new quality productivity, and corporate growth: Micro evidence from Chinese listed companies," Finance Research Letters, Elsevier, vol. 87(C).
    2. Liu, Jiqing & Lv, Xiaojing & Zhang, Gui & Zhang, Meng, 2025. "Can fintech drive innovation in enterprise digital business models?," Finance Research Letters, Elsevier, vol. 78(C).
    3. Puhao Guo & Xiangqian Wang & Huaiyin Jiang & Xiangrui Meng, 2025. "Does Digital Transformation Improve Manufacturing ESG Performance: Evidence from China," Sustainability, MDPI, vol. 17(16), pages 1-19, August.

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