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Confucian traditional culture and corporate digital transformation in China

Author

Listed:
  • Chen, Yao
  • Li, Chaoqun
  • Ding, Yifan
  • Wang, Shiyong

Abstract

This study quantifies the impact of Confucian culture on firm digital transformation using literature and web crawling techniques. It finds that Confucian culture promotes digital transformation by enhancing risk awareness, curbing opportunistic behavior, and increasing technological capital. While it compensates for weaknesses in formal institutions, the influence of foreign cultures may diminish its effects. This research deepens our understanding of Confucian culture's role in decision-making and its economic implications for firms.

Suggested Citation

  • Chen, Yao & Li, Chaoqun & Ding, Yifan & Wang, Shiyong, 2025. "Confucian traditional culture and corporate digital transformation in China," Finance Research Letters, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325004003
    DOI: 10.1016/j.frl.2025.107137
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    References listed on IDEAS

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    1. Hilary, Gilles & Hui, Kai Wai, 2009. "Does religion matter in corporate decision making in America?," Journal of Financial Economics, Elsevier, vol. 93(3), pages 455-473, September.
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    3. Porfírio, José António & Carrilho, Tiago & Felício, José Augusto & Jardim, Jacinto, 2021. "Leadership characteristics and digital transformation," Journal of Business Research, Elsevier, vol. 124(C), pages 610-619.
    4. Tang, Xudong & Jia, Yang & Li, Rui, 2024. "Common institutional ownership types and corporate innovation: A taxonomy based on whether the investees are in the same industry," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).
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    Keywords

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    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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