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The innovation effect of digital business model transformation orientation: Evidence from corporate cross-boundary innovation

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  • Fan, Yongzhen

Abstract

With the rapid development of the global digital economy, digital transformation has become a crucial strategy for enhancing innovation and competitiveness, particularly for traditional industries. As digital technologies evolve, traditional businesses must adapt by transforming their business models, optimizing their operations, and engaging in cross-sector innovation to meet the demands of emerging markets. This study investigates the role of digital business model transformation in driving cross-sector innovation in traditional enterprises, focusing on the impact across different lifecycle stages, ownership structures, and regional levels of digital economy development. Through comprehensive regression analysis, the findings show that digital business model transformation significantly promotes cross-sector innovation in traditional enterprises, regardless of lifecycle stage or ownership type. Furthermore, the study reveals significant heterogeneity in the impact of digital transformation on innovation based on regional digital economy levels. Regions with advanced digital infrastructures exhibit stronger effects, while even less developed regions see positive outcomes. Additionally, operational efficiency and government subsidies are identified as key mediating mechanisms that facilitate the positive relationship between digital transformation and cross-sector innovation. The results underscore the importance of digital business model transformation as a driver of innovation and provide valuable insights for both business managers and policymakers, especially in the context of supporting digital transformation in different market environments.

Suggested Citation

  • Fan, Yongzhen, 2025. "The innovation effect of digital business model transformation orientation: Evidence from corporate cross-boundary innovation," International Review of Economics & Finance, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025007415
    DOI: 10.1016/j.iref.2025.104578
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    1. Zhang, Wei & Cheng, Na & Li, Qiuyang & Hu, Xinyi & Lei, Xue, 2025. "The digital odyssey: Why management team stability matters for corporate transformation," Finance Research Letters, Elsevier, vol. 86(PF).

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