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The dynamic impact mechanism of digital government development on enterprise digital transformation: A quasi-natural experiment analysis based on big data governance institutional reform

Author

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  • Meng, Lamei
  • Wang, Huijun
  • Liao, Liyi

Abstract

This study leverages the reform of big data management institutions as a quasi-natural experiment, selecting Chinese non-financial listed companies from 2007 to 2023 as the research sample to thoroughly analyze the dynamic impact mechanism of digital government development on enterprise digital transformation (Digitization). Empirical analysis shows that the development of digital government significantly promotes Digitization. Specifically, the effect is more pronounced in enterprises with high R&D investment intensity and in regions with strong government support. In addition, the study finds that enterprise size plays a significant moderating role in the relationship between digital government development and Digitization; that is, as enterprise size increases, the promotional effect of digital government development on digital transformation weakens. Furthermore, the degree of industry competition also exhibits a significant moderating effect, whereby a higher level of industry competition strengthens the beneficial influence of the advancement of digital government on digitization. The results of this research offer significant theoretical and practical perspectives for comprehending the mechanisms through which the development of digital government propels Digitization. Additionally, it enables both enterprises and governments to make well-informed choices as they navigate the digitalization journey. This understanding helps in grasping how digital government initiatives act as catalysts for Digitization and equips stakeholders with the knowledge needed to optimize their strategies during this digital transition process.

Suggested Citation

  • Meng, Lamei & Wang, Huijun & Liao, Liyi, 2025. "The dynamic impact mechanism of digital government development on enterprise digital transformation: A quasi-natural experiment analysis based on big data governance institutional reform," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325013765
    DOI: 10.1016/j.frl.2025.108121
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    References listed on IDEAS

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